The State of Food & Beverage 2001 Spending, in an Advisory by ,
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BW0031  OCT 16,2001       2:01 PACIFIC      05:01 EASTERN


( BW)(TX-INDUSTRIAL-INFO-RES) The State of Food & Beverage 2001
Spending, in an Advisory by Industrialinfo.com

    Business Editors

	   HOUSTON--(BUSINESS WIRE)--Oct. 16, 2001--The following is an
advisory by Industrialinfo.com (Industrial Information Resources Inc.;
Houston, Texas). As the Food & Beverage Industry continues
restructuring to find growth, mergers, acquisitions and consolidation
are shrinking the industry. In recent years, food processors have
shown ravenous appetites for acquiring smaller companies that can help
increase their market share and improve efficiencies. Five of the
biggest industry players control about 50% of sales in the United
States.
	   Since improved efficiency is one of the typical reasons for
mergers and consolidations, often the result is the closure of
less-efficient plants. Once that process begins, there are many
related decisions that need to be made that quite often can lead to
decisions regarding the consolidation of other facilities in a company
and sometimes replacing an aging facility with new construction.
	   Since the beginning of the year, Industrialinfo.com has been
tracking activities in mergers and acquisitions and also plant
closings. 141 plants in the US and Canada have closed their doors and
over 85 major mergers/acquisitions have been made with more in the
works or pending for the year 2001.
	   Excess production capacity has become a problem in some parts of
the food industry, such as grain processing and meat production. The
primary reason industry experts say is a decline in foreign demand,
partly due to increasing production by processors in South America and
Asia, particularly China.
	   Companies seeking to construct new facilities are also facing more
stringent state and local regulations regarding air emissions and
water pollution. Given the increasing capital investment, food
processors are more likely to expand, when possible, rather than build
new plants.
	   IIR's capital spending and MRO projections for 2001 are at $13.8
billion. In the top 45 publicly held companies, spending projections
are estimated at $11 billion, up 1.1% over 2000 projections. Over two
thirds of capital spending is happening within existing facilities
with money being spent mainly on production, packaging and process
control equipment. Improvements in automation and information
integration are the major trend impacting capital spending over the
next five years.
	   Industrialinfo.com provides daily news related to the industrial
market place including industry alerts and databases for the energy
and industrial markets. For more information on trends and upcoming
construction activities in the Food & Beverage industry as well as
other industrial sectors send inquiries to
foodandbeveragegroup@industrialinfo.com or visit us at
www.industrialinfo.com.

    --30--DH/na*

    CONTACT: Industrialinfo.com, Houston
             Joseph Govreau, 713/783-5147

    KEYWORD: TEXAS
    INDUSTRY KEYWORD: FOODS/BEVERAGES
    SOURCE: Industrialinfo.com

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