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Food & Beverage

Optimizing cash management in Food and Beverage (F&B)

Companies in the food and beverage industry face unique cash management challenges. The purpose of this content is to list the various difficulties that food and beverage companies may encounter, along with solutions, including the use of cash management software such as Fygr.
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Food & Beverage (F&B): key points to remember about cash management

Cash management is a major strategic challenge for Food & Beverage companies, which face high cost volatility, complex supply chains, and significant regulatory constraints. The pressures stem from a structural imbalance between unstable input costs, demanding production cycles, and constant pressure on margins:
Extreme volatility of raw materials with rapid and unpredictable fluctuations
Complex international supply chains (currency exchange, logistics, supplier dependency)
Heavy regulatory and technological investments (health standards, traceability, safety)
Constant pressure on margins, balancing costs, volumes, and price competitiveness
Fygr enables F&B companies to secure their cash flow and margins by providing a clear, forward-looking, and operational view of financial flows.

The specific cash flow challenges for Food and Beverage companies

Why is cash management particularly difficult for companies in the F&B sector? We have identified three major issues.
Extreme volatility in commodity prices
Complexity of the international supply chain
Regulatory and technological investments that are restrictive

Extreme volatility in commodity prices

The food and beverage sector is facing unprecedented volatility in agricultural commodity prices.

Fluctuations can be sudden and unpredictable, influenced by climatic, geopolitical, and speculative factors. A beverage or food producer may see its supply costs skyrocket in a matter of weeks, with no real ability to immediately adjust its selling prices.

This constant instability creates ongoing pressure on margins and requires constant financial vigilance.

Complexity of the international supply chain

Food companies now operate within extremely complex global supply chains, multiplying financial risks.

Each link in this chain represents a potential point of weakness: exchange rate fluctuations, logistical constraints, different payment terms depending on the country, changing local regulations.

A single incident can quickly turn into a cash flow crisis, forcing the company to make rapid and precise financial adjustments.

Regulatory and technological investments that are restrictive

The food sector is subject to increasingly strict health regulations, requiring massive and recurring technological investments.

Traceability, food safety, and sustainability standards impose significant costs that must be anticipated and integrated into financial strategy.

These regulatory constraints, combined with the need to constantly innovate to meet new consumer expectations, create ongoing financial pressure on companies in the sector.
BEST PRACTICES

How to effectively manage cash flow for a company in the food and beverage industry

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Controlling the volatility of procurement costs

Supply chain management is a major challenge for companies in the food sector, which face constant fluctuations in raw material prices. An effective strategy involves developing a proactive approach to negotiation and diversifying supply sources. This involves building strong relationships with multiple suppliers, negotiating flexible contracts that allow for price variations to be absorbed, and building strategic reserves for periods of high volatility. The ability to anticipate and adapt quickly to market changes becomes a key competitive advantage, enabling stable margins to be maintained despite economic uncertainties.

Optimize the management of production and sales cycles

Food companies must develop a highly refined approach to their operating cycle, perfectly synchronizing the production, storage, and sales phases. This optimization requires a precise understanding of inventory turnover times, product storage conditions, and consumption trends. It is becoming essential to implement forecasting mechanisms that allow production to be adjusted instantly in line with sales forecasts, thereby reducing the risk of overstocking or shortages. The ability to anticipate seasonal variations, changes in consumer habits, and regulatory constraints is becoming a major driver of financial performance.

Strategically managing international financial risks

The food sector is characterized by its growing international dimension, involving significant exposure to currency risks and geopolitical fluctuations. Proactive management of these risks requires the development of sophisticated hedging strategies using appropriate financial mechanisms. This means not only closely monitoring exchange rates, but also building financial scenarios that incorporate potential geopolitical changes, trade tensions, and regulatory upheavals. The ability to maintain financial flexibility while securing international supplies is becoming a crucial strategic issue for the sustainability of the business.
CHOOSE FYGR

Why use Fygr for a company in the food and beverage industry?

The most suitable solution for managing F&B challenges: cash management software such as Fygr. Fygr already serves many companies in this sector. Read on to find out why Fygr is the ideal solution.
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GOOD REASON #1

Financial management in the agri-food sector

Turn your banking data into strategic intelligence
Automatic categorization by production line and supplier
Early detection of financial anomalies related to imports/exports
Automatic identification of price variations by raw material
GOOD REASON #2

Forward-looking financial strategy

Anticipate complex changes in your food sector
Modeling the impacts of commodity price fluctuations
Simulation of financing requirements according to production cycles
Analysis of the potential impacts of consumer trends
GOOD REASON #3

Continuous performance optimization

Turn your data into competitive advantages
Automatic benchmarking of margins by production segment
Identification of levers for financial improvement
Interactive multi-criteria dashboards

They chose Fygr

Here's what some of our customers have to say after choosing Fygr to visualize their financial data:
No entrepreneur likes to keep track of their cash flow.
And yet, it's the number one cause of start-up failure.
I tried everything on my own, without success.
Until I discovered Fygr.
Finally, a simple and intuitive tool.
That I enjoy using.
Laura CHETAIL 🥂
CEO @ KOKO Kombucha
Fygr can help you better control your expenses and manage them over time, as it gives you a comprehensive, long-term view of your cash flow. It doesn't happen on its own, but I must admit that Fygr is very comprehensive and saves a considerable amount of time.
Dany Fernandez
Manager @ Atelier du pic
Great software and great customer service, I recommend it.
Isabelle Orsetti
Founder @ Savoie Nature Croquettes
FAQ

Everything you need to know about cash management for F&B businesses

Answers to the questions you ask us most often.
How to choose cash management software for a company in the food and beverage sector?
To choose the right software, identify your specific needs: international supply management, tracking changes in raw materials, and integration of regulatory constraints. Choose a solution that offers accurate traceability of financial flows, the ability to forecast production costs, and currency risk management. Make sure the software can handle the complexity of your supply chain and adapt to rapid changes in the food industry.
What are the advantages of cash management software over Excel in the food and beverage industry?
Cash management software offers complete automation of processes specific to the agri-food industry. Unlike Excel, it allows you to track changes in raw material prices in real time, model the impact of regulatory and climatic fluctuations, and generate dashboards tailored to the specific characteristics of the sector. Automatic bank synchronizations facilitate the monitoring of international flows and the management of currency risks.
How to make reliable cash flow forecasts in the food and beverage industry?
For accurate forecasts, collect historical data covering at least 24 months, taking into account the volatility of food markets. Incorporate specific seasonal cycles, fluctuations in raw material prices, and the potential impact of health regulations. Develop scenarios that take into account geopolitical risks, emerging consumer trends, and potential investments in innovation.
How long does it take to implement cash management software for an agri-food company?
Implementation can take anywhere from a few weeks to several months, depending on the complexity of your organization. Issues specific to the food and beverage sector, such as multiple sources of supply and different production lines, may require a more elaborate configuration. Good software should be able to adapt quickly to your company's structure while integrating its sector-specific features.
How much does cash management software cost for an agri-food company?
Prices vary significantly depending on the size of the company and the complexity of its needs. For a small or medium-sized agri-food business, expect to pay between €100 and €500 per month. High-end solutions can cost several thousand euros per month for large groups, but offer advanced risk management and strategic forecasting features.
Who are the competitors in the treasury software market for the Food and Beverage sector?
The market offers several specialized solutions such as Fygr and Agicap, as well as more general solutions that can be adapted to the sector. The choice will depend on your size, your type of production (industry, crafts, distribution), and your specific needs in terms of traceability and risk management.
How can I tell if my agri-food business needs cash management software?
Your company needs such a tool if you find it difficult to forecast your cash flow in the face of raw material volatility, if you manage complex international supplies, or if you need better visibility into your production margins. This is particularly crucial if your turnover exceeds €1 million and you have multiple production lines.