News article
5 July 2010
New Report Shows Innovation and Investment at Heart of Food and Drink Industry Success
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PRESS RELEASE
An ongoing demonstrable commitment to innovation and high-value production are
key reasons why the UK's food and drink industry has emerged from recession in
better shape than many other manufacturing sectors, according to a new report
commissioned by the Food and Drink Federation[1] from the Institute for Manufacturing[2] at the University of Cambridge. From May 2008 to May 2009, the production index
for food and drink fell by only 1.9 compared to 13.1 for manufacturing overall
–
a clear indication of the industry's resilience. The report was commissioned by
the Food and Drink Federation.
Responding, Melanie Leech, FDF Director General, said: “As Government builds the
strategy for economic recovery, this report provides a timely reminder of the
important financial, strategic and social contribution of the UK's biggest
manufacturing sector. We have placed innovative research and development at the
heart
of our industry and continued to invest in our products, our factories and our
people in a hugely challenging economic climate – and are now well-placed to
capitalise on these strong foundations as the country emerges from recession.
We are
a high value added sector offering world-beating capabilities and a rich range
of career choices. The Government can place us with confidence at the heart of
its strategy for recovery.”
Products:
The UK food and drink industry invests more than £1.1bn a year on R&D - a
comparable level with the automotive sector.
It has launched 1,500 new products each quarter since the beginning of 2008.
As well as NPD, industry has expended considerable resource in responding to
consumer demands for products that are lower in salt, fat or energy.
UK food products are also in demand overseas – 2009 saw the 5th consecutive rise
in food exports, growing in value by 4.4% to £9.65bn in 2009, significantly
outperforming other manufacturing sectors, which experienced an 11.8% slump in
overseas sales.
NB: please see United Biscuits case study at end of press release
Factories:
The food sector has been one of the most resilient manufacturing sectors in
terms of output during the recession and FDF members are confident about
increasing
their investment in UK production facilities in the next three to five years.
Indeed, business expenditure by the food and drink industry also supports their
increased commitment to investment. According to ONS time series figures,
between
Q1 2009 and Q1 2010, UK manufacturing business expenditure dropped by almost
25%. Within the same time frame, the food and drink industry increased their
business investment by 7.2%, raising its percentage of total manufacturing
business
expenditure from 13% to 19%. The IfM report also shows that:
- 65% of UK food and drink manufacturers have more than 75% of their production in
the UK
UK manufacturers also invest heavily in UK design and research work, with very
similar percentages to UK production
- Nearly 40% of UK food and drink manufacturers plan to increase investment in
production and research and design over 3-5 years
NB: please see Coca Cola Enterprises case study at end of press release
People:
- 94% of employees in the UK food and drink sector are full-time
- UK food and drink employees are paid well above the national average
- Average tenure within the food and drink industry is 9 years
- 20% of employees are graduates
NB: please see Müller Dairy case study at end of press release
Report author Finbarr Livesey, Director at the IfM, said: “The food and drink
industry has weathered the recession best of all manufacturing sectors and
appears
to have continuing strength in R&D. The sector will be a bell weather for
changes to come, as the industry addresses environmental and health issues, two
areas
intimately related to food production.”
The University of Cambridge's Institute for Manufacturing (IfM), is a division
of the Department of Engineering. The IfM brings together expertise in
management, economics and technology to address the full spectrum of industrial
issues.
Its activities integrate research and education with practical application in
companies, providing a unique environment for the creation of new ideas and
approaches to modern industrial practice. The IfM works closely with industry,
at a
regional, national and international level, providing strategic, technical and
operational expertise to help companies to grow and to become more competitive. (www.ifm.eng.cam.ac.uk)
Notes 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.
2. The University of Cambridge's Institute for Manufacturing (IfM), is a
division of the Department of Engineering. The IfM brings together expertise in
management, economics and technology to address the full spectrum of industrial
issues.
Its activities integrate research and education with practical application in
companies, providing a unique environment for the creation of new ideas and
approaches to modern industrial practice. The IfM works closely with industry,
at a
regional, national and international level, providing strategic, technical and
operational expertise to help companies to grow and to become more competitive. (www.ifm.eng.cam.ac.uk)
Download the report: Value of Food & Drink Manufacturing to the UK - pdf | 806kb
More Information
- FDF Press team
-
Cath Wilkins on cath.wilkins@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
Case Studies
Products: United Biscuits Case Study
United Biscuits has made great progress with its health and nutrition programme
and is continuing to make improvements to meet consumer needs. Saturated fat
was
identified as a key target with changes first made on the snacks portfolio as
part of a reformulation programme starting in 2005.
Hula Hoops are made with sunflower oil and now contain 80% less saturated fat
than in 2005. KP Crisps also contain 80% less. Skips, KP Mini Chips, Brannigans
Crisps, Wheat Crunchies, Frisps, Nik Naks, Space Raiders and Roysters now have
75%
less saturated fat. McCoy's Crisps have 70% less and Discos now have 60% less
saturated fat. Mini Cheddars Crinklys have seen a 40% saturated fat reduction
and
Mini Cheddars a 30% reduction.
After achieving saturated fat reductions in the snacks, work started in
September 2005 to discover how saturated fat reductions in biscuits could be
achieved.
In 2009 a number of UB's biscuits were launched with 50% reductions in
saturated
fat. For some products a second reduction was launched at the start of 2010.
Examples of the overall reductions include: an 80% saturated fat reduction in
McVitie's Digestives and Light Digestives, a 75% reduction in McVitie's
Hobnobs, Rich
Tea and Light Rich Tea, and a 65% reduction in McVitie's Light Hobnobs.
Extensive consumer testing was carried out to find the optimum reduction of
saturated fat that could still offer the same great taste. UB invested a total
of
£14m in changes to ingredients and investment in manufacturing facilities, as
well
as TV advertising to communicate to consumers the news about the reduced
saturated fat of McVitie's biscuits.
UB also reduced the saturated fat in some of its popular savoury biscuits in
2009 so that the saturated fat in Jacob's Light Cream Crackers has reduced by
55%
and in Jacob's Cream Crackers and High Fibre Cream Crackers by 30%.
For more information, please visit www.unitedbiscuits.com
Factories: Coca-Cola Enterprises Case Study
Coca-Cola Enterprises Ltd (CCE) makes, sells and delivers over 4 billion soft
drink bottles and cans in GB every year. The company has seven manufacturing
plants and eight distribution sites in GB, and employs 4,650 people across the
country.
CCE's Wakefield site is the largest in Europe, with an area size the equivalent
of 25 football pitches housing a total of nine production lines. One of these
has the largest carbonated filler in Europe producing 1,000 litres of product
per
minute.
CCE's operation at Milton Keynes currently houses nine production lines,
generating over a third of all canned Coca-Cola products manufactured in the
UK.
Among other environmental achievements, both sites have achieved a "zero
landfill" performance. Here are three examples of recent investment at these
two sites:
1. Wakefield: Pre-form area
- New pre-form area allows the factory to produce its own pre-forms, which are
then blown into PET bottles
- Opened on 2 October 2009 by local MP, the Rt Hon Ed Balls
- Result of a £6m investment which will help to cut production costs and carbon
emissions by reducing delivery miles by 135,000 every year.
2. Milton Keynes: New can line opened
- On 13 August 2009 CCE unveiled a new £11m canning line at Milton Keynes
- New line will enable the production of up to 1,500 cans (330ml) a minute
- Investment will facilitate the GB production of 500ml cans of energy drink
Relentless
- Site workforce increasing by 10 per cent
3. Wakefield: New can line planned
- On 2 October 2009 CCE announced plans to invest £13m in a new can line at
Wakefield
- New line will increase production by an additional 2,000 cans every minute.
- New line will increase the site's capacity from over 66 cans per second to over
100 cans per second.
For more information visit: www.cokecce.co.uk
People: Müller Dairy Case Study
Müller Dairy, Britain's leading yogurt producer, is a company which has
continued to invest in training and development programmes, throughout the
recession.
As well as work placements at various levels from GCSE through to post-graduate
and vocational training such as NVQ apprenticeships, Müller Dairy also offers:
ongoing desktop computer skills training; internal coaching programmes
delivered
by key executives; workshops aimed at empowering employees at all levels to
maximise their potential; and work placements for employees across different
functions within the business.
Over the course of the past 12 months, Müller Dairy has also pledged its
commitment to two new major educational initiatives.
The company is funding places for four students on the Eden Programme – the
Industry Dairy Education Programme, which aims to develop new learning
curricula and
qualifications suitable for Europe-wide accreditation within the dairy
industry.
The company has also given its backing to the new Diploma in Manufacturing and
Product Design – a vocational course which was launched in September 2009 in a
number of colleges around the country.
As a key employer in the region, Müller Dairy has committed to a joint venture
with Stoke on Trent Authority which is running the level 2 Diploma in
Manufacturing and Product Design in two local colleges - Edensor Technology
College and
Thistley Hough Arts & Media College. The company's involvement is not only to
provide students with practical advice and insights into the world of dairy
manufacturing at the beginning of their course, but also to act as a 'client'
assessing
new business projects developed by the students as part of their diploma.
For more information visit www.mullerdairy.co.uk
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