News article

11 June 2009

Food and drink exports hit record levels

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PRESS RELEASE

UK exports of food and non-alcoholic drinks have hit record levels, boosted by strong performances in all product categories and a growing taste for British products in Central European countries.

Research commissioned by the Food and Drink Federation (FDF) reveals that exports were worth £9.23bn in 2008, up 20% in value terms on the year before. When alcoholic beverages – notably Scotch Whisky – are included, exports hit £13.6bn.

Star performers included; biscuits (up 15.3%); breakfast cereals (up 12.5%); cakes (up 12%); cheese (up 16.7%); chocolate (up 10.9%); sauces and condiments (up 21%); soft drinks (up 30.7%); and tea (up 14.3%). Together, exports of these added value products were worth almost £1.9bn.

The overall performance was also boosted by a buoyant red meat sector, recovering after the lifting of foot and mouth restrictions; strong exports of commodity cereals; and another strong year for fish and seafood companies who recorded overseas sales worth £1bn, despite tough market conditions.

Central Europe is one of the standout regions for exports, with growth fuelled by the demand for a wide range of UK food and drink products in the former Eastern Bloc countries. Exports to Hungary were up 74.3% to £40.2m; exports to Poland were up 53.6% to £116.4m; those to Latvia were up 51% to £8.6m; to Slovakia up 45.2% to £11.5m; and to Lithuania up 32.7% to £9.7m.

Melanie Leech, Director General, Food and Drink Federation, said:

“Amid all the economic gloom, this is a genuine 'good news' story. UK food and drink manufacturers have built a strong international reputation for quality and innovation over many years – and it's clear that our sector continues to perform strongly on the export stage, despite challenging global circumstances. As the Government this week looks to promote the importance of international trade through World Trade Week, these figures are a timely reminder of the important economic contribution made by the UK's biggest manufacturing sector.”

Report author, Chris Brockman, Market Research Manager of Leatherhead Food International, said:

“These figures represent yet another impressive performance from the UK food and drink exporting community. Exchange rates have clearly swung round in the favour of UK exporters, but the weakening of global markets means that competing on the international stage remains a challenge. The rebounding red meat sector has boosted overall performance, with UK lamb and beef exports together now back up to a level of nearly half a billion pounds, whilst the markets of Central and Eastern Europe represent some of the fastest growing opportunities for British products.”

More Information

FDF Press team
Keren McCarron on keren.mccarron@fdf.org.uk or 020 7420 7132
Sarah Lovell on sarah.lovell@fdf.org.uk or 020 7420 7131
Rebecca Wilhelm rebecca.wilhelm@fdf.org.uk or 020 7420 7140

Note to Editors

  1. The Food and Drink Federation (FDF) is the voice of the food and drink manufacturing industry – the UK's largest manufacturing sector. For more information about FDF and the industry we represent visit FDF Exports.
  2. Leatherhead Food International is a market leader in supporting the global food and drink sectors, covering all food related issues from technical analysis and research through to market data and regulatory guidance. For further information visit Leatherhead Food International website.
  3. World Trade Week, the first event of its kind in the UK, takes place from 8 to 12 June and will highlight the importance of global trade in creating jobs and growth in the current economic climate. World Trade Week UK is part of a Government drive to maintain open and fair markets and resist protectionism in the face of a global downturn and falling international trade flows. For more information visit World Trade Week website.

Stories behind this year's figures

Unlike many industries, it is not just a small minority of food and drink companies that export. UK Trade and Investment believes that more than 30% of Britain's 7,000+ food and drink manufacturing companies sell their products overseas. Here are some of their stories:

Biscuits

United Biscuits is tapping into the demand for quintessentially British products and exporting its McVitie's biscuits to every continent. Consumers in countries as far afield as Ghana, India and Saudi Arabia are tucking into McVitie's biscuits. Carr's biscuits are another product with a strong British heritage that is proving a big hit in export markets as far afield as Australia and North America. In fact, more Carr's biscuits are now sold overseas than in the UK.

Breakfast cereals

Kellogg's Wrexham factory has been supplying breakfast cereals to Europe for 30 years. Today, its products are sold across Europe and the Middle East. In fact, the factory makes 70% of all the Special K cereal eaten in Europe!

Jordans has successfully built a strong export business over 20 years. Today, the Biggleswade company's high quality wholegrain cereals are sold in over 20 countries and export sales account for almost 31% of its overall turnover, with current annual growth of 18% per annum. Jordans is now the number one muesli brand in France and has won two Queen's Awards for Export.

Chocolate

Innovative supply chain thinking by Elizabeth Shaw has helped it more than more than double exports to South Africa. The Bristol-based chocolatier is working in co-operation with its retail partner to supply branded products in bulk, which are then repacked in South Africa into bespoke packaging.

Sauces and condiments

AB World Foods is a seasoned exporter of Indian and Oriental sauces, pastes, condiments, accompaniments and ingredients under the Patak's, Blue Dragon and Rajah brands. Its range is exported to more than 50 markets worldwide – including Poland where it is building a loyal following for its innovative brands.

Tea

Consumers in Central Europe have a taste for British tea, thanks to companies such as Typhoo. Its London Fruit and Herb and Typhoo Fruit Creations ranges have listings in all the major retailers in the Czech Republic, Hungary and Slovakia. In Poland, the company has also been growing sales of its black tea – thanks to the fact that Poles travelling to the UK for work or pleasure return home with a taste for a proper British cuppa.

Other Useful Statistics

Top 10 export markets for food and non-alcoholic drinks

  • Ireland (£2.4bn)
  • France (£1.1bn)
  • Netherlands (£776.1m)
  • Germany (£689.4m)
  • Spain (£571.9m)
  • Italy (£426.7m)
  • Belgium (£357.4m)
  • United States (£258.1m)
  • Denmark (£220.7m)
  • Sweden (£128.7m)

Top 10 fastest growing export markets for food and non-alcoholic drinks

  • Bulgaria (£5.5m, up 160.6%)
  • Hungary (£40.2m, up 74.3%)
  • Croatia (£6.4m, up 72.4%)
  • Denmark (£220.7m, up 69.7%)
  • Norway (£116.8, up 61.1%)
  • Abu Dhabi (£6.7m, up 60.5%)
  • Vietnam (£12.1m, up 56.5%)
  • Poland (£116.4m, up 53.6%)
  • Nigeria (£58.3m, up 53.1%)
  • Jordan (£8.9m, up 52.8%)

Top 10 biggest product sectors for exports of food and non-alcoholic drinks

  • Chocolate (£360.7m)
  • Breakfast cereals (£352.9m)
  • Cheese (£281.5m)
  • Lamb (£263m)
  • Fresh fish (£241.1m)
  • Crustaceans (£238.4m)
  • Poultry (£215.1m)
  • Beef (£212.7m)
  • Sweet biscuits (£203.9m)
  • Milk & cream (£203m)

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