24 September 2012
Food and drink companies continue to be optimistic through 2012
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For the first time since the Food and Drink Federation's (FDF) Business
Confidence survey was launched in 2010, food and drink business leaders have
positive levels of optimism for consecutive quarters.
Despite continuing uncertainty in the UK economy, food and drink manufacturers'
business optimism has remained high in 2012. Businesses have continued to
in research and development, product launches and human resources. This
confidence is positive for a sector that has set itself the challenge to grow
Domestic sales strengthened in Q2 with 48% of survey respondents reporting
growth compared to the previous quarter. Expectations are that domestic sales
strengthen further throughout the remainder of the year.
In overseas markets, there remains strong interest in UK food and drink exports,
with a third of respondents reporting growth. Again, confidence is high in the
run up to Christmas and opportunities for UK exporters abound.
Ingredient prices remain high for food and drink businesses with national data
showing food commodity prices up 2.6% between Q1 and Q2.
Food and drink manufacturers continue to invest heavily in staff, particularly
in upskilling but also through a small rise in numbers employed.
The food and drink industry continues to invest, particularly in research and
development resulting in over 50% of respondents introducing new product lines
Q2. Capital Expenditure (CAPEX) remains subdued but still positive, as the
uncertain economic environment holds back capital projects.
FDF's Economic and Commercial Services Director, Steve Barnes, said:
“It is really encouraging to see optimism amongst our survey respondents so
far this year. Holding your nerve in this economic environment is by no means
easy and is a great credit to our members in difficult times.
“Looking ahead, we expect to see both our domestic and overseas sales increase
as we head towards Christmas. Our commitment to grow our industry by 20% by
is ambitious and we remain confident that we will achieve this goal.”
Note to Editors:
- The Food and Drink Federation (FDF) is the voice of the food and drink
manufacturing industry – the UK's largest manufacturing sector. For more
about FDF and the industry we represent visit: www.fdf.org.uk
- Full FDF Business Confidence Survey, Q2 2012
Rebecca Wilhelm or 020 7420 7140 - email@example.com
Nicki Hunt on or 020 7420 7132 - firstname.lastname@example.org
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