Q2 Small Business Research Board Food & Beverage Industry Key Issues Report:
Food & Beverage Companies’ Economic Outlook Remains Consistent With Last Quarter Says Latest SBRB Report 

BUFFALO GROVE, ILL (October 7, 2008) – Owners and managers of small food and beverage businesses indicated, during the second quarter of 2008, that they expect the economy to worsen only slightly and believe that revenues and hiring will remain steady during the next 12 months, according to the latest Small Business Research Board (SBRB) study released here today.

Of the owners and managers of food and beverage companies responding to the nationwide quarterly SBRB poll co-sponsored by IPA, 49% reported inflationary pressures. 73% of respondents experiencing inflationary pressures said they have raised prices, 21% have added or increased shipping costs or reduced other operating costs and 12% have renegotiated customer pricing agreements.

Meanwhile, the quarterly report said 27% of the respondents felt that energy/fuel costs have the greatest impact on their businesses. 25% report economic conditions and 21% report taxes as the single issue having the greatest impact. Cost of materials was the fourth mentioned possibility.

The Small Business Research Board (SBRB) previously reported that its Food &
Beverage Industry Small Business Confidence Index (SBCI) increased by 13 points to 43 during the second quarter of 2008. The responses of owners and managers of small food and beverage companies participating in the second quarter poll indicated a decrease in confidence in the economy, but stated revenue expectations and hiring remained consistent from last quarter. The outlook for the general economy, revenue growth and hiring expectations are three key indicators used to determine the SBCI.

The second quarter of 2008 food and beverage SBCI (set at 42) remains consistent with 43 registered during the first quarter of 2008.

The overall SBCI, during the second quarter of 2008, for all U.S. small businesses was 30, a decrease of 13 points from the prior period. The historical SBRB SBCI high occurred during the first quarter of 2005 when the SBCI hit 52 points. The previous historical low was during the fourth quarter of 2007 when the SBCI fell to 33.67 points. 

More than 1,000 small business owners participated in the nationwide poll.  

The universe of participants is developed from among small businesses across the United States. The SBRB study is a voluntary survey conducted quarterly. 

The Small Business Research Board ascertains and reports the opinions of small business owners and managers on a wide variety of topics related to their own businesses as well as national and international issues that may impact their operations. The SBRB conducts these studies for the benefit of small business owners and managers. The SBRB also provides opportunities for third parties to gain real time insight into the attitudes of small businesses nationwide through the independently conducted research. 
 
More information can be found at www.ipasbrb.net.

IPA is the largest privately held provider of management consulting services to small and medium-size businesses in North America.  IPA, and its more than 1,800 professionals, offers a wide range of proven and innovative methodologies to help businesses grow and prosper regardless of the economic cycle.  IPA either provides directly, or through its affiliated companies, a comprehensive array of business advisory services, tax and estate planning services or merger, acquisition and other financial advisory services in the United States and Canada. More information about IPA can be found at www.ipa-c.com.

© 2008 Small Business Research Board

For more information about this poll, results of previous studies or other matters related to the Small Business Research Board, please contact Jennifer Cumbee, (847) 495-6786.