The food, beverage and hospitality industry

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The food and beverage industry is one that is highly favoured by many investors. Shares in its companies can offer attractive returns over the longer term, with less volatility than those of other sectors. Because of their non-cyclical features, food and beverage companies are often described as defensive investments that retain their value in good times and bad.

While providing long-term stability, the industry is also highly innovative. In this issue of Pictet Report, we interview some exceptional entrepreneurs behind well-known food, beverage and hospitality companies. These include prestigious wine producers in France, Italy and Spain, a fast-growing French luxury pâtisserie chain, a premium Russian vodka label, a global hotel and restaurant chain run from Thailand and a British company which pioneered healthy fruit drinks produced in an environmentally responsible manner.

For analysis of the dynamics of such businesses, we interviewed a leading business school expert on the importance to consumer product companies of sustainability and social responsibility. And two Pictet analysts told us how they pick food, drink and other defensive companies in sectors whose stocks can appear expensive.

Several of the businesses we profile have been built up by their founding families over generations, and all have been successful because of the passion of their owners. They share such characteristics with Pictet, which has sustained an entrepreneurial spirit since its foundation in 1805 through its association with a family. As with all the family firms we interviewed, Pictet constantly innovates so that it can pass on an even stronger firm to the next generation.

We hope that this issue will tempt you to sample some of the great brands it features, and that you will enjoy reading about the talented entrepreneurs behind them.

Rémy Best
Managing Partner
Pictet Group