Boom time for UK food and drink exports

Related tags Drink exports Alcoholic beverage United arab emirates

Up, up, and away for British food exports
Up, up, and away for British food exports
UK food and drink exports surpassed £10.83 billion in 2010, up 11 per cent on the previous year, according to new figures that belie opportunities for manufacturers to look to new markets – and the importance of the sector to the overall economy.

The data, which exclude alcoholic beverages, mean UK exports have grown for the sixth consecutive year. They also underscore the vibrancy of the sector throughout the economic downturn; the food and beverage sector, while subject to the volatilities of raw material prices, tend to experience less of a drop off in consumer demand in recession than industries manufacturing non-essential goods.

The country’s closest neighbours, Ireland and France are the biggest recipient of UK food and drink exports, followed by The Netherlands, Germany and Spain.

However high percentage increases from further afield belie opportunities outside the borders of the EU. Exports to Hong Kong were up 36.6 per cent on 2009 levels, to the US 28.9 per cent, and to the United Arab Emirates 22.7 per cent.

Exports = success

Fruit and nut bar maker Eat Natural is one of the UK companies that regards exports as crucial to its business.

Last year about 25 per cent of its turn over came from exports, with the Netherlands and France its most important non-domestic markets – with a 41 per cent year-on-year increase from 2009.

Praveen Vijh said: “Our brand has significant appeal abroad, especially as almost all retailers around Europe have started to concentrate on introducing healthier, more premium lines into their cereal bar portfolio to help grow that category with incremental sales.”

The company’s brand is now present in almost all stores of Dutch retailer Albert Heijn. But in addition to the traditional retail sector, Vijh said the on-the-go market is opening up new locations in cafes and next to supermarket tills.

With new distribution points starting up this year, Vijh is aiming for another 30 per cent hike in exports in 2011.

Charles Baughan, owner of sausage-maker Westway's said: “Exporting our products around the world exposes us to new markets and new consumers who have different tastes and requirements. This helps in turn us to constantly innovate and improve our products in a way that benefits both markets at home and abroad.”

For Baughan it is the emerging markets that hold the most promise. At present 7 per cent of its sales come from exports, with Portugal, France and Hong Kong the most successful markets.

However the growing taste for British meat products in China has not gone unnoticed. Indeed, its Honey Roast pork sausages are already stocked in 300 stores in China, and and the company says it will be focusing its efforts there in the future.

Economic driver

Food and Farming Minister Jim Paice was due to unveil the new export data at the International Food Expo held at Excel in London today. He said in a statement: “The export sector is incredibly important to our producers, so the fact that we now export more than £10 billion worth of food and drink shows that discerning consumers across the globe value what we produce and that this vital sector is playing its part in Britain's recovery.”

For Melanie Leech, director general of the Food and Drink Federation, the new export figures provide new leverage for putting the food and drink sector centre stage in the for the coalition government’s economic plans.

“The food and drink industry must be at the heart of the UK's strategy for economic growth – and we look forward to working in partnership with the Minister and his colleagues in Defra, BIS and across Government to ensure that we maximise the economic potential of our sector and ensure that we play our part in contributing to global food security,”​ she said.

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