How food and beverage companies adjust to the throes of tariff woes

On-again-off-again tariffs, a down economy, and a long list of global supply chain disruptions are challenging U.S. food and beverage companies to adjust their supply chain operations in a variety of ways.

At a macro level, the food and beverage industry is facing a confluence of global supply chain disruptions – tariffs, raw materials and ingredients shortages, labor shortages, persistent port delays, and more. At a micro level, sector-specific disruptions include driver shortages for truck fleets, cost-of-goods inflation that is significantly changing consumer preferences, compounded by new food labeling and ingredient regulations. 

“Unpredictable weather patterns are impacting agricultural yields and transportation networks,” said Holland & Knight partner Meaghan Colligan Hembree. “Geopolitical instability is compounding delays and inflating costs.”