The food and beverage industry is undergoing a quiet but profound revolution. Pressured by inflation, labour shortages, sustainability demands, and the growing complexity of global and local supply chains, producers are seeking ways to operate more efficiently, predictably, and sustainably. Amid these challenges, one development stands out as a true enabler of long-term value creation: servitisation.
At its core, servitisation is about shifting from selling single products to delivering holistic outcomes. It redefines relationships in the supply chain — not as transactional vendor-client exchanges, but as collaborative partnerships built on shared risk, shared goals, and guaranteed results.
And it’s reshaping how we at Tetra Pak partner with our customers, evolving from delivering solutions to enabling long-term transformation. This strategic approach underpins Tetra Pak® Advanced Agreements and the value they deliver to our customers.
Five pressures shaping the industry
According to Sasha Ilyukhin, Senior Vice President, Global Processing Services and Services Solutions at Tetra Pak, five challenges are consistently top-of-mind for food and beverage manufacturers – challenges that servitisation is uniquely placed to solve. Firstly, there’s economic pressure. “From inflation to cost volatility, new tariffs, and the transformation of global trade, producers are facing intense price pressure right across their value chain,” says Ilyukhin. “Asset utilisation efficiency and total cost of ownership have therefore become critical factors.”
Then there’s de-globalisation, and the VUCA factors – volatility, uncertainty, complexity, and ambiguity. “Disrupted logistics, volatile geopolitics, and regulatory fragmentation are pushing manufacturers toward more localised, resilient operations,” he says. Sustainability concerns remain important for consumers and producers alike – food waste, water usage, and energy consumption are under greater scrutiny than ever, not just at the source or on the shelf, but throughout production processes – followed by labour challenges and digitalisation.
High turnover rates and a shrinking pool of skilled workers are undermining operational continuity and increasing training burdens, and while technology and digital solutions hold promise, unlocking their value requires more than installing smart systems – it takes integration, data, and cultural alignment. However, Ilyukhin notes that through the lens of servitisation, these challenges also represent opportunities for forward-thinking. “By turning these operational issues into pathways for differentiation and competitive advantage, servitisation can enable producers not just to adapt but thrive.”
From traditional sales to delivering results: the new era of service?
Servitisation is about moving beyond the traditional product-sales model to one focused on delivering outcomes. That means shifting from selling equipment and stand-alone services to solving problems, realising opportunities, and committing to long-term performance partnerships. This paradigm change is already well underway in many industries, and the food and beverage sector is starting to catch up.
“Servitisation helps establish true partnerships between companies – you take on much more risk, and take a significantly higher stake in your customer’s business,” says Ilyukhin. “You become invested in their success and ambitions for the future – it means you’re in it together, long term.”
This change in dynamic creates a far more integrated way of working, and means companies like ours are not only responsible for uptime and maintenance, but also for broader outcomes like waste reduction, cost savings, energy efficiency, and even capacity growth. These results are now often built into servitisation solutions, such as Tetra Pak® Advanced Agreements, which are structured to ensure shared accountability and guaranteed results through measurable KPIs and risk-reward models.
The result? A transition from transactional interaction to continuous collaboration, underpinned by data, trust, and alignment on each customer’s unique priorities and ambitions.
Listening first: How real value is identified and delivered
Unlike traditional models, servitisation begins by listening. Really listening. “Our customers know what’s important to them, or what they want to achieve,” says Ilyukhin. “Our job is to help them realise that opportunity or tackle whatever challenges they highlight together.” Working closely with customers also means exploring and prioritising these opportunities and challenges through powerful collaborative tools, identifying hidden losses and inefficiencies, and quantifying them in business terms.
“This works at both strategic and operational levels,” explains Ilyukhin, “and we often discover opportunities that customers were unaware of, such as excess water use, energy waste, or quality issues that had gone unexamined.” And with longer contract durations than traditional models, servitisation allows for prioritisation – what Ilyukhin defines as strategic importance versus value versus the required capabilities and timing. “It's impossible to tackle everything together in year one, so we have to think short-term, medium-term, and long-term.”
Benchmarking plays a crucial role in servitisation, too. With thousands of contracts globally, we can draw on anonymised performance data to help our customers see how they compare against their peers, or even other industries. "The status quo can be customers’ worst enemy,” Ilyukhin explains. “Sometimes customers believe they’re performing well, until we show them that similar plants are achieving a 10 to 15% higher Overall Equipment Effectiveness (OEE). That insight opens the door to meaningful conversations and action."
Success isn’t just promised – it’s measured, shared, and guaranteed
While the specifics of each service agreement may differ, the principles of success remain consistent. The foundation of every successful service agreement is alignment – both parties must agree on the goal and how it will be measured. This means adopting the customer's perspective, understanding their language of performance, and aligning on metrics that matter to them. “You need to measure success the customer’s way,” says Ilyukhin.
Second, commitments must be backed by real accountability. In our case, this includes risk and reward mechanisms that ensure we don’t just promise value — if agreed targets aren’t met, there are financial consequences. “We don’t just promise, we commit and deliver,” says Ilyukhin of our service agreements. “That’s a big difference between us and our competitors.”
Third, these agreements must be built on human relationships – trust is the real currency. Without it, customers are unlikely to open up their systems or share the operational insights needed to drive meaningful change. That’s why we invest heavily in local teams, cultural fit, and long-term presence, working side by side with customer personnel to drive improvements over time. “This is absolutely crucial – people, not platforms, power servitisation,” he adds.
The future of service is here – and it’s delivering capacity
If the last few years have proven anything, it’s that disruption is here to stay. But so too is innovation. And servitisation is proving to be one of the most promising levers for resilient, scalable, and sustainable growth in the food and beverage industry.
Looking to the future, this way of working is poised for further evolution – and the next frontier is already taking shape. Digital enablement will continue to deepen, with AI, machine learning, and predictive systems becoming more tightly integrated into solution delivery. But even more significantly, new business models are emerging – such as capacity-as-a-service.
In this arrangement, customers don’t buy equipment or after-sales service; they buy a guaranteed level of output. Everything – equipment, upkeep, upgrades, training, cybersecurity – is combined into a single, per-unit fee that varies depending on the customer’s production output. It’s a radically simplified way of doing business that aligns perfectly with the outcomes-focused spirit of servitisation.
The real risk? Standing still
Still, this transition is not without its hurdles. “Trust remains the most common barrier,” says Ilyukhin, noting that this applies particularly to data sharing and strategic alignment. Ambiguity surrounding KPIs, differing definitions of success, and rigid contract structures can also hinder progress.
Internally, companies may also face bureaucratic roadblocks, employee doubt, or lack the digital infrastructure to fully capitalise on the value of advanced agreements. That’s why a proof-point approach — starting with a specific line or improvement goal — is an effective starting point to build confidence and momentum. Upfront investment can be another sticking point; for this reason, we at Tetra Pak work with customers to structure agreements that ease financial entry and spread the cost burden over time.
So, what advice does Ilyukhin have for companies just beginning to explore the concept of servitisation? “Start small, start smart, and start with a partner you trust,” he says. “Begin with something manageable, like a pilot — a meaningful project that demonstrates the value of this approach before scaling up. And find a partner that is committed not only to your success but to understanding your specific goals and challenges.”
It's also essential to ensure the initiative is aligned with corporate strategy and backed by senior leadership, not just isolated at the plant level. “It's very important there’s a strategy for driving operational improvements in a structured way, and that has to come from company strategy,” he adds.
As the industry adapts to a new era of uncertainty and change, one thing is becoming increasingly clear: those who rethink service will reshape their own success. But ultimately, servitisation is not about contracts or even services. It’s about outcomes, partnership, and long-term shared success. In a world of rising complexity, it offers food and beverage producers a rare and valuable proposition: “Clarity, predictability, and performance, delivered not as a promise, but as a commitment. That’s what makes the difference,” says Ilyukhin. “And that’s where the future is heading.”
Sasha Ilyukhin
Senior Vice President, Global Processing Services and Services Solutions, Tetra Pak.
A member of the global senior leadership team for Tetra Pak, Mr. Ilyukhin is responsible for sustainable, profitable growth of Processing Services and long-term service agreements world-wide. In this role, Mr. Ilyukhin and his team are transforming the services business model through creating, deploying, and nurturing outcome-based solutions focused on customers’ business resilience, productivity, sustainability, and human centricity. Mr. Ilyukhin also serves on several global steering committees tasked with strategy development and organizational transformation of Tetra Pak Group.
