What does the future hold for our sector?

18 March 2015, 09:16 AM
  • Boasting a value of £103 billion last year and employing one in eight people, Britain's food and drink sector is booming
What does the future hold for our sector?

In 2013, 30,000 new food businesses emerged, helping to bring 16,000 new food products to the market each year – in doing so raising the profile of independent producers and in turn the retailers who sell their products. Defra has recently brought 50 ‘Food Stars’ into the spotlight; a group of producers which offer us a taste of things to come and highlight the quality of British food, many of which are independent, artisan, and stocked by SF readers. What’s the future of the industry, and what is the government doing to ensure that our sector continues to grow?

Elizabeth Truss, environment secretary

“We are a nation of firsts; we invented self-raising flour and introduced the first modern chocolate bar. As a country we’ve always been a place where sparky entrepreneurs come up with great innovation in food and drink, people with the ambition to grow and take on the world.

“Now is the time to celebrate that success which is helping grow our economy – that is why we’ve created Food Stars to recognise the bright innovators of today and support them to become the major players of tomorrow.

“From chutney made from fruit and veg that would otherwise have been thrown away, to chorizo made from British pigs in Yorkshire, our 50 Food Stars truly represent the best of British and demonstrate the creativity and determination in which this country takes pride.

“Our Food Stars show if you want to see a vision for Britain’s bright economic future, look no further than the UK’s food and drink industry.”

Adam Sopher, Joe & Sephs

“Being named a Food Star was very flattering and unexpected. It puts us on the national stage a bit more; there were all sorts of businesses there, from start-ups to those much bigger than us, and it was great that the event promoted the producers rather than just the brands.

“The big takeaway for us is that the government and consumers are now valuing independent producers quite highly – they’re actively trying to support and promote successful food businesses, in order to inspire newer ones to make something of themselves.

“There’s a lot of government support to come in the ffuture, and the event gave us a platform to have some very valuable conversations. Speakers like the founders of Ella’s Kitchen really inspired us, and have made us reflect on our business.

“The government can help by guiding businesses through the first few months. From watching Dragon’s Den people seem to think that people need hundreds of thousands of pounds to start a business and that you have to supply supermarkets straight away – actually, you can grow at a pace you’re comfortable with and slowly but surely build a sustainable business. Case studies – which don’t just include the Dragon’s Den-style companies – would be useful, so new companies can learn that you don’t need a big investor or TV show to get started.”

Hugh Duffie, Sandows

“It’s really exciting for us to be included amongst the 50 Food Stars, especially after launching only 10 months ago. I think we might have been the youngest there, too – nonetheless, it helps to reinforce that our approach so far, targeting the premium end of the market, has been worthwhile. It’s nice to think that we’re contributing to Britain’s thriving start-up food and drink sector.

“Consumers and the government have never been more aware of the value of small and independent producers. As we heard at the Food Stars event last week, the smaller companies with plenty of potential for growth are the ones providing all the new jobs. That means they are a real priority for the Government, but also now that we’ve all settled into having the Internet and the world has become a smaller place, British people know about and are into more new and interesting flavours/ products than ever before. That cultural shift has certainly lowered the barriers for small, independent producers, particularly of products in new, unchartered categories like ours.

“Schemes like the SEIS Investment Scheme are great and really make a difference but cash flow can kill so many great small businesses, and it’s far from ideal to have to release so much equity so early on in order to be successful. Support like reliefs on tax, NI, business rates and perhaps even subsidies on renting certain types of unused property could be some great ways to make it more appealing than ever to start a food and drink brand in the UK. Apparently there are 16,000 new FNB products launched each year in the UK, but how many of those achieve the incredible success of brands like Innocent or Ella’s Kitchen? It’s a great time for this industry but could be even better!”

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