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

 Breaking News
  • Florette Further Expands its UK Business In line with its strategy to be a major player within the UK fresh produce category, Florette UK & Ireland (part of the French Agrial group) has acquired the Wigan site of MyFresh Prepared Produce, a producer of a wide range of salad and vegetable products. MyFresh, Wigan, which employs almost 300 people and was [...]...
  • FrieslandCampina Simplifies its Organisation Royal FrieslandCampina intends to simplify its organizational structure into four to be set up global business groups – Consumer Dairy, Specialised Nutrition, Ingredients and Basic Dairy. A less complex structure will enable FrieslandCampina to more decisively respond to the market developments and to innovate better with respect to strategic priorities. The objective of the new [...]...
  • Heineken’s Acquisition of Punch is Cleared The Competition and Markets Authority (CMA) has accepted proposals by Heineken to resolve concerns over its £402.7 million acquisition of Punch Taverns, one of the UK’s largest leased pub companies, with a portfolio of more than 3,500 pubs nationwide. In June, the CMA said that Heineken’s proposed purchase of part of the Punch Taverns estate [...]...
  • Changing Consumer Tastes Drive Long-term Global Sugar Market Slowdown The consumers’ shift away from sugar consumption is an important driver behind significant changes in the food and beverage industry. These changes will have long-term ramifications, including a likely slowdown in the worldwide sugar market, according to the latest report of Rabobank ‘Sweetness and Lite’. A combination of changing preferences, product reformulations and government pressure have [...]...
  • How is the Rise of E-Commerce Changing the Role of Physical Stores? The rise of the internet has allowed retailers to directly connect with consumers from beyond the physical store revolutionising the competitive space more than ever. The world recently saw the acquisition of Amazon and Whole Foods which sent shock waves through the retail industry. This unforeseen merger has put retailers under pressure more than ever [...]...
  • SPX FLOW Appoints Pierre Sbabo as Vice President, Food and Beverage in EMEA SPX FLOW has announced the appointment of Pierre Sbabo as the Vice President of its Food and Beverage business in EMEA. He comes from a strong background in the water and process technology markets with truly international experience. With a Master’s Degree in Marketing and International Business from ESC Chambery, Sbabo has worked for global leaders [...]...

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



Related Articles

Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • September 11, 2017drinktec
  • September 13, 2017FI Asia
  • September 19, 2017PROCESS EXPO 2017
  • September 22, 2017Global Summit on Food & Beverages
AEC v1.0.4

The Magazine

F&D Business Preferred Suppliers