FDBusiness.com

UK Food and Beverage Companies Look to Invest at Home and Abroad

 Breaking News
  • UK Grocery Prices Rising at Fastest Rate in Four Years The latest grocery market share figures from Kantar Worldpanel, for the 12 weeks to 5 November 2017, show UK supermarket sales have increased in value by 3.2% year-on-year in the run up to Christmas. Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, explains: “Volume sales have increased by less than 1%, meaning it’s [...]...
  • Alcohol Minimum Unit Pricing to Go Ahead in Scotland The UK Supreme Court has ruled that minimum unit pricing for alcohol, which was passed overwhelmingly by the Scottish Parliament in 2012, can now proceed. Scottish Health Secretary Shona Robison has welcomed the decision and confirmed she intends to make a statement to Parliament shortly, setting out the Scottish Government’s next steps. Following the unequivocal backing [...]...
  • GEA Brings Together Technologies to Supply Extended Production Line For BMI GEA has recently been selected to supply an extended pasta filata cheese production line for BMI in Jessen, Germany. With this exemplary project GEA brings together its joint cheese-making expertise, resulting from its acquisition of de Klokslag and CMT in 2014 and 2015 respectively, with GEA’s flow and processing experience to provide a single offering for this [...]...
  • Bosch Packaging Technology Wins German Design Award 2018 The Sigpack VPF (Vertical Platform for Flat Pouches), the first freely scalable flat pouch machine from Bosch, has been honoured with the German Design Award 2018 in the Excellent Product Design category. The German Design Council presents the prestigious award on an annual basis. The German Design Award is the second prestigious accolade for the [...]...
  • Premier Foods Returns to Revenue Growth Premier Foods, the UK convenience food group, has reported group revenue of £353.3 million for the 26 weeks ended 30 September 2017 – an increase of 1.5% on the prior period – with Branded revenue in line with last year at £295.4 million while Non-branded revenue increased by 10.1% to £57.9 million. Group reported half year [...]...

UK Food and Beverage Companies Look to Invest at Home and Abroad

UK Food and Beverage Companies Look to Invest at Home and Abroad
October 21
09:48 2013

Driven by rising optimism globally many UK food and beverage companies are looking to increase investment across areas such as facilities, equipment, IT and product development over the next 12 months, according to a new report from leading business and financial advisory firm Grant Thornton.

The  report, ‘Hunger for growth: food and beverage looks to the future’, also identifies that barriers to growth remain, with over 40% of UK respondents predicting that raw material prices will rise by 1-5%. Subsequently this was identified as the biggest challenge for the sector in the year ahead.

Trefor Griffith, head of food and beverage at Grant Thornton UK LLP, says: “There’s been a new wave of optimism across UK food and drink businesses, partly driven by export opportunities and partly due to improved consumer sentiment, which is increasing investment in the sector. However, wider challenges remain for the sector, not just in terms of rising raw material prices, but also in managing the volatility in the price and supply of many key commodities, and ensuring the continuity of supply when product availability is short in the UK or globally.”

Despite the UK being a net-importer, findings from the report indicate there will be an increase (a move from 2% to 5% over the next two years) in the number of UK businesses selling at least 25% of their products abroad.

Trefor Griffith continues: “Seven out of 10 respondents said growth was the more important factor over the next year rather than cost reduction, a sentiment that can partly be accounted for by increased export opportunities. This optimism, along with beneficial exchange rates, trusted ‘safe’ supply chains and demand for British brands and products are all likely to contribute to an increase in UK food and beverage exports.”

On supermarket shelves, the report finds that approximately half of UK respondents expect positive effects from the trend towards locally sourced goods – few expect a negative impact. Businesses have invested heavily to maintain and improve product integrity and to apply more rigour to their supply chains, some as a direct result of the horsemeat scandal.

Trefor Griffith concludes: “Recently, there’s been a trend towards locally sourced food and interestingly some supermarkets have adopted a ‘UK sourcing only’ policy on all meat products, forcing many suppliers to use only UK meat, changing food chain behaviour and encouraging investment in UK production. Although this isn’t as straightforward as it may seem as there will be imbalances caused by consumer preference for certain types of popular meat, and price conscious consumers are already causing some retailers to reintroduce imports. These imports will be better policed than in the past, which will benefit the quality operators in the market.”

The report finds that almost two thirds (60%) of UK food and beverage businesses are likely to require additional funding over the next 12 months. Outside of Western Europe, China (37%), South East Asia (30%) and Africa (37%) are three key markets many UK food and beverage firms are intending to enter over the next two years.

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • November 28, 2017Fi Europe
  • December 4, 2017Plastics and Paper in Contact with Foodstuffs 2017
  • January 8, 2018RAI Exhibition
  • January 16, 2018Sival Plant Production Trade Show
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements