How Food & Beverage Supply Chains Are Bracing for Tariffs (And Why April 2nd Matters)

⚠️ What’s Happening on April 2nd?

New tariffs are expected to take effect—and while it may not be the doom scenario some predict, the uncertainty alone is making planning nearly impossible.

“April 2nd is going to come and go,” Nadim says, “but hopefully with more certainty. That’s what we need most.”

Companies are stuck in a holding pattern, unsure whether to act now or wait it out. And for those in food and beverage, the stakes are higher than many realize.

🧃 Why Food & Beverage Is Uniquely Vulnerable

Nadim, drawing from his leadership roles at Starbucks, Kraft, and Keurig, outlines several industry-specific challenges:

• Ingredient traceability: You may manufacture oat milk in the U.S.—but your oats? Likely imported from Canada.

• Certification delays: If you switch suppliers, you’ll need to re-certify for things like organics, allergens, and non-GMO—an expensive, time-consuming process.

• Supply chain complexity: Shifting origin countries requires more than a procurement pivot. It demands agronomic changes, new inspections, and compliance risk management.

“You can’t convert overnight to a different oat field,” Nadim quips.

🛠️ So What Can Leaders Do Right Now?

The biggest takeaway from the episode: prepare, even if you don’t yet act. Here’s how Nadim recommends supply chain leaders spend the next few weeks:

• Map your Gantt chart: Identify your critical paths for ingredient certification and supplier onboarding.

• Contact auditors now: There’s a global shortage of certifiers. Know their lead times and availability.

• Validate your supplier traceability: Especially if you’re considering shifting origin countries.

• Review contingency levers: From cost absorption to price increases, know your internal playbook.

🤖 The Case for Automation and AI

Beyond reacting to tariffs, now is the time to modernize. Both Nadim and David emphasize that uncertainty isn’t just a threat—it’s a trigger to dust off automation plans and build resilience:

• AI for scenario planning and forecasting

• Robotics and smart warehousing

• Digitized compliance and data-driven sourcing decisions

David points to Amazon’s new highly automated facility as a sign of what’s next:

“This kind of automation sets the stage for AI to actually drive the operation.”

🇺🇸 Rethinking Localization

One bright spot? Tariff turbulence is making localization strategies more appealing again. While domestic production brings its own challenges, Nadim highlights some real advantages:

• Greater speed to market

• Reduced freight disruption

• Better control over labor and logistics

• Increased flexibility in responding to consumer shifts

🧠 Final Thoughts: Don’t Waste the Disruption

“Do not let a good disruption go to waste,” Nadim says.

Use this moment to reassess:

• Operational flexibility

• Internal decision-making parameters

• Cash availability

• Your automation roadmap

Because whether April 2nd brings tariffs or not, the time to build smarter, more agile supply chains is now.