FDBusiness.com

Major Expansion of the Menu For English and Welsh Food and Drink Manufacturers

 Breaking News
  • British Brewers Decrease Their CO2 Emissions by 42% Total CO2 emissions from the UK’s brewing industry have fallen by 42% in the last decade (2008 to 2018) – a reduction of 202,952 tonnes – according to new research conducted by the British Beer & Pub Association (BBPA). The research also found that the energy used to brew a pint of beer in the [...]...
  • Small Irish Snack Manufacturer Secures Major Contract With Tesco Pinkfinch, a County Down-based fruit snacks supplier, has secured a major contract with Tesco Ireland, which will see an estimated 100,000 bags sold annually. From launching his business in his parent’s spare bedroom five years ago,  Pinkfinch founder Michael Heaslip (pictured) has grown his innovative product line across Ireland, the UK, Europe, and the Middle East,  with [...]...
  • UK Supermarkets are Struggling to Grow The latest grocery market share figures, published by Kantar, show year-on-year supermarket sales were flat during the 12 weeks to 11 August 2019 as the tough comparisons with 2018’s strong summer continue. The memory of last year still looms large for retailers and this summer’s comparatively poor weather, combined with low levels of like-for-like price [...]...
  • Tickets Still Available For 2019 Irish Food & Drink Business Awards Some tickets are still available for the 2019 Irish Food & Drink Business Awards presentation ceremony and gala dinner to be held at the Citywest Hotel in Dublin on the evening of Thursday, 5 September 2019. The winners of the 2019 Awards will be named at the event. The prestigious awards programme, which was first introduced [...]...
  • Nestlé UK Launches New On-trend Flavours Nestlé has introduced two new on-trend flavours to its much-loved Munchies brand in the UK and Ireland. Available in 101g sharing bags, new Munchies Chocolate Fudge Brownie and Munchies Cookie Dough are the first new Munchies products since 1996. The new flavours were created at Nestlé’s confectionery sites in York and Fawdon, Newcastle. Munchies Brand Manager [...]...

Major Expansion of the Menu For English and Welsh Food and Drink Manufacturers

Major Expansion of the Menu For English and Welsh Food and Drink Manufacturers
September 01
10:11 2015

Food and drink manufacturing companies in England and Wales are readying plans to create thousands of new jobs over the next five years, as they look to drive growth at home and abroad, according to a new study by Lloyds Bank Commercial Banking. The report, ‘Investing for Growth’, found confidence strong across Britain’s biggest manufacturing sector, with firms planning to develop innovative new products and increase export activity.

The second annual study, which surveyed English and Welsh producers of alcohol, fresh produce and food and drink products, examines the opportunities for, and challenges faced by, the industry over the short to medium-term.

The forecast for job creation in this year’s report is strong, with firms planning to create more than 73,000 new jobs over the next five years. Against this backdrop, just over a third (34 per cent) plan to drive business growth through job creation. However, with the sector facing the retirement of hundreds of thousands of workers by 2020, over a quarter of survey respondents (28 per cent) cited a lack of skilled labour as one of the biggest challenges facing the food and drink industry today.

Optimism in the sector is universal, with 100 per cent of firms expecting to grow over the next five years, up from 98 per cent from last year. More than four in five firms (82 per cent) forecast up to 25 per cent growth over the next five years. Mergers and acquisitions are highlighted as key growth driver by the largest operators (those above £750 million annual turnover).

The majority of firms are focused on both entering new markets in the UK (56 per cent) and developing new products (55 per cent), as a way of achieving their growth ambitions.

The cautious approach to spending and investment adopted by many companies post-recession is evident in this research. The majority of respondents (53 per cent) will fund growth using cash reserves, followed closely by cash flow finance at 45 per cent.

The majority of producers (72 per cent) plan to enter new international markets in the next five years, up from 63 per cent in 2014 While Western Europe remains the most popular export market (60 per cent), the number of businesses targeting this territory is 16 per cent down on last year.

Second most popular target market is North America (49 per cent), followed by the Far East and Asia (43 per cent), which is also down on last year (54 per cent of businesses were planning to target this market in 2014). Indeed, 88 per cent of firms believe English/Welsh produce has a good reputation overseas.
LloydsBankLogoFirms plan to invest on average a quarter (25 per cent) of current turnover into R&D over the next five years. Half of firms (50 per cent) plan to form partnerships with other organisations in their supply chain to develop new products, streamline manufacturing processes and boost productivity

Innovation is a vital spur for long term growth within the industry. Indeed, more than half of producers (55 per cent) plan to develop new products as part of their strategy for growth.

Andrew Connors, head of mid-sized business at Lloyds Bank Commercial Banking, comments: “The contrast between the 2014 report and our latest research is really positive, with significant job creation and investment figures revealed. Productivity presents an ongoing challenge for the UK economy. Against this backdrop, the continued commitment from food and drink manufacturers to drive productivity and innovation through R&D is a clear indication of the crucial role this sector plays in the broader economy.”

He adds: “Lloyds Bank supports producers, from start-ups to multinational brands, and will continue to help industry operators achieve their ambitions with bespoke finance and specialist knowledge. Food and drink is without doubt a sector that will help Britain prosper.”

About Author

mike

mike

Related Articles

Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • September 11, 2019Packaging Innovations & Luxury Packaging London 2019
  • October 1, 2019PPMA Total Show
  • October 17, 2019Future Food-Tech
  • November 18, 2019Plastics Caps and Closures Conference 2019
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here



Advertisements