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Partnerships over products
The servitization shift in food and beverage.
By Sasha Ilyukhin, SVP Global Processing Services and Services Solutions, Tetra Pak
Confidence in the UK’ s food and beverage manufacturing sector has dropped steeply. In the final quarter of 2024, the Food & Drink Federation recorded a net confidence score of-47 percent, a dramatic fall from minus six percent just three months earlier. This shift, however, is not unique to the UK, but indicative of the global food and beverage sector, and a consequence that reflects the weight of rising costs, fragile supply chains and intensifying regulatory demands.
These aren’ t fluctuations. Margins are being tightened, investment decisions delayed, and resilience tested at each stage of the value chain. In this environment, temporary fixes and one-off upgrades are just not enough. To stay competitive, manufacturers need to pivot from reactive measures to proactive, long-term outcome-driven partnerships where risk and performance are shared, and value is measured by results rather than transactions.
The rise of servitization in manufacturing
One way in which this can be achieved is through servitization, a business model that moves the focus from specific products to delivering results through collaborative, outcome-based partnerships. Servitization builds a synergy where both the manufacturer and service provider are aligned to common goals and share responsibility for performance. Both sides agree to deliver measurable results, whether that’ s minimizing product loss, optimizing energy use or increasing overall line efficiency.
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