Taste the difference

Scotland’s food and drink industry turnover growth has increased by 20.8 per cent in just four years, with its performance outshining the UK as a whole, which grew by just 8.6 per cent over the same period. The difference in growth is the equivalent of an additional £1 billion to the sector, Food Secretary Richard Lochhead confirmed today.

In the first four years of a partnership with Scotland Food and Drink – between 2008 and 2012 – Scotland’s food and drink manufacturing turnover growth rocketed and was more than double that of the UK.

Mr Lochhead revealed the figures during his address to the Scotland Food and Drink AGM today, after the First Minister and Deputy First Minister launched the Government Economic Strategy, and spoke of his delight that retail sales of Scottish food and drink brands across Britain increased by £89 million – 4.9 per cent – between May 2010 and May 2014 – with Scotland Food and Drink planning new sales across the UK retail and food service markets that could bring in a further £1bn by 2017.

Mr Lochhead said:

“The collaboration with Scotland Food and Drink over the past seven years has proven to be extremely beneficial to the industry. In fact, I am confident that this ground-breaking partnership has been a key factor in the industry witnessing a rate of turnover growth that has left us £1 billion better off than it would have been had we been in line with UK growth – that is just staggering.

“Long may that continue and I’m delighted to be able to confirm today, that, together with Scottish Enterprise, the Scottish Government has agreed to continue to support Scotland Food and Drink over the next three years. This new funding will be used to ensure that we enhance the partnership approach that has already worked so well.

“The Government Economic Strategy launched today sets out the ambitions to further increase economic growth and boost competitiveness. Scotland’s food and drink industry will benefit from this targeted approach.

“Scotland is fast becoming one of the world’s leading food and drink nations – demand for our products has been booming in the overseas markets for years now and I’m delighted to witness that same demand is rapidly increasing in our home market too.

“There is a lot to be proud of in Scottish food and drink, and a lot of potential for growth. And that is why it is important for our retail and food service sectors to encourage the sale of home-grown produce.”

James Withers, chief executive of Scotland Food and Drink, said:

“Food and drink is now central to Scotland's economic success. Employing 360,000 people right through the supply chain, it reaches into every community across Scotland. However, whilst we have seen unprecedented growth in the last few years, we are ambitious still.

“Our way of working in Scotland is unique. We have brought different sectors of the industry together, working alongside government and its agencies to forge a real partnership. We have created a new culture of collaboration. Critically, we are seeing the economic success that this brings and we are rightly viewed by other countries as a model to follow. But our competitors will catch up so we need to deepen our partnership and impact over the next few years. The prize is taking an industry that was worth £10 billion in 2007 to one worth £16.5bn by 2017; a target that is now in our sights.”