IBERSOL | Integrated Management Report 2022

CORPORATE GOVERNANCE REPORT for restaurants in concession spaces at airports, which are awarded by tender. The Group is committed to maintaining good relationships with franchisors to ensure continuity and to comply with contractual obliga- tions and defined standards. Disposable income and purchasing power The Group’s business can be negatively affected by economic downturns due to a decrease in household consumption, which is influenced by wage policies, unemployment, credit, interest rates, confidence, and social protection. The Group offers products and services accessible to the public in general and adjusts the portfolio in accordance with adverse socioeconomic conjunctures, ensuring sustainable activity and profitability. Consumption habits Another potential risk for the Ibersol Group and the brands it represents is the possible inability to understand consumers’ preferences and needs and adapt to behavioural changes in time to offer innovative and attractive products and concepts in a profitable manner. The ability to develop higher value products under competitive conditions is critical for the restaurant sector, but behavioural evolutions are difficult to predict. However, the Iber- sol Group maintains a close relationship with global brands, monitors con- sumption trends in different markets, participates in innovation forums and has resources allocated to the development of new products. Commodity prices Commodity prices, mainly agricultural products, are expected to retreat in 2023 due to the decrease in global demand. However, limited supply will keep prices high. The war in Ukraine will continue to affect the market for agricultural products, while climate change and China’s geopolitical position also pose significant risks. Disruptions in supply chains due to the pandemic are expected to diminish in 2023, leading to a drop in food indices. Cereal prices will be influenced by events in the Black Sea region and oilseed and vegetable prices should reach a trough by the end of 2023. The war in Ukraine could also indirectly affect coffee, cocoa, and tea prices due to fertiliser shortages. 318