The Food and Beverage Processing Industry

Topics: Economy of Canada, Saputo Incorporated, Canada Pages: 5 (1328 words) Published: February 1, 2013


The food and beverage processing industry, the largest manufacturing industry in Canada, is an important industry to the Canadian economy. In fact, Canada not only has a great deal of natural resources, including abundant water and most incomparable rich soil, but also possesses two accumulated advantages, involving long history and experience with food and beverage processing industry and reasonable infrastructures. Therefore, these natural and accumulated advantages strongly support the food and beverage processing industry.

NAICS Industry Profile

It is commonly recognized that Canada is one of the largest agricultural producers and exporters in the world. According to the report, the Canadian food and beverage processing industry exports a mass of processed products worth of about $21 billion to 180 countries each year; also, this industry occupies 17% of the total value of manufacturing shipments and 2% of national Gross Domestic Product. In addition, the industry is the largest manufacturing employer. A study indicates that the food and beverage processing industry employs approximately 290,000 Canadians. Furthermore, the sales of processing goods were valued at $92.9 billion in 2011.

Current Issues in the Industry PESTEL

In this paper, I will use Saputo Inc. as a model to analyze the dimensions of PESTEL that consists of six factors: political; economic; sociocultural; technological; environmental; and legal.

Overview of Saputo Inc.
Saputo Inc. was found by an Italian immigrant Giuseppe Saputo in 1954 as a small cheese store. Today, Saputo Inc. is the biggest food and beverage processor in Canada and the world’s twelfth largest dairy producing company and it produces a wide array of products, including cheese, baked goods, fluid milk, yogurt, and dairy ingredients. Saputo’s home hailed from the region of Quebec and it’s headquarter is located in Montreal. The stability of the political environment is essential for the development of international trade. Canada is a free-trade country. To illustrate, Canada is involved in many trading agreements, including the European Union (EU), the Association of Southeast Asian Nations (ASEAN), and North American Free Trade Agreement (NAFTA). Importantly, NAFTA is very crucial for Canada since it is the world’s largest free trade area, which has three country members: Canada, USA, and Mexico. In fact, Saputo mainly operates in five areas, including Canada, Germany, Wales (United Kingdom), Argentina, and the United States and its international trade accounts for a big portion of its total sales. For example, one third of Saputo’s revenues come from the company’s operations in the United State. Therefore, a steady political environment and progressive trade-policy greatly improve and promote Saputo’s development. Also, Canada is one of the world’s wealthiest nations and its economy has steadily grown in the last decade. In 2011, the Canadian Gross Domestic Product (GDP) is worth of 1736.05 billion. During the years from 2002 to 2012, Canadian GDP reaches its peak at 1736.05 billion dollars in December of 2012.

Under the influence of the Canadian prosperous economy and openness of trade policies, Saputo has been increasingly growing in these years and its total sales are 6,930 million this year. There are several graphs below about financial information.

Saputo, a fifty-eight year old company, also has an outstanding company culture that offers its employees training opportunities to exploit their individual potential, which is a way to let the company become bigger, better, and stronger in order to meet the needs of today’s market. Thus, all employees’ attitudes intend to be passionate, devoted, and attentive to details, and they are proud of their products continuing to be desired and valued by consumers. Saputo Inc. is one of the leading dairy processors in the world, not...
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