FDF Scotland: Four actions to cut grocery bills and support our food and drink industry

Food and Drink Federation (FDF) Scotland has today sent a letter to the next First Minister of Scotland. The letter sets out four actions the Scottish Government can take to cut grocery bills and support Scotland’s vital food and drink industry.

The full text of the letter is below:

First Minister

The Scottish Government

St Andrew’s House

Regent Road

Edinburgh

EH1 3DG

 Via email to: firstminister@gov.scot

 23 April 2026 

The Food and Drink Federation is warning that food inflation could now reach at least 9% by the end of this year. For Scottish shoppers, this means everyday food bills are set to rise by around £200 this year, at a time when household budgets remain under severe strain.

Until recently, food inflation was expected to ease through 2026. However, the closure of the Strait of Hormuz has driven up energy and supply chain costs.

Food and drink manufacturing sits at the heart of the weekly shop. It is also one of the Scotland’s most energy‑intensive and globally connected sectors, leaving it particularly exposed to sudden shocks. With multiple cost pressures hitting the industry at once, there is a real risk that any further policy or regulatory costs will be passed directly on to shoppers through higher prices on the shelf.

 As you enter Bute House, we urge you to act quickly to:

• Stop adding costs: Government regulations and charges have increased costs for food and drink producers and ultimately driven inflation for consumers - we need early and sustained industry engagement. Government must understand the inflationary potential of government decisions.
• Prioritise our food and drink sector: The Scottish Government and its enterprise agencies must work with us to drive growth harder and faster than ever before.
• Have a long-term plan for the environment: Ensure environmental and climate strategies are aligned, practical, and support businesses to reach net zero, while giving businesses the confidence to invest.
• Press the UK Government to introduce targeted energy support for the food and drink sector: We need all food and drink manufacturers to have access to support.

Acting early will help protect household food budgets while ensuring Scotland’s food and drink manufacturers can continue to invest, grow, and support jobs across the country.

Kind regards,

David Thomson

Chief Executive Officer

Food and Drink Federation Scotland

ENDS

 For more information, please contact kirsty.tinsdale@fdfscotland.org.uk / 07508 303 736.

 Notes for editors:

• Food and Drink Federation (FDF) Scotland is a division of the FDF - the voice of the food and drink manufacturing industry – the UK's largest manufacturing sector. For more information about FDF Scotland and the industry we represent visit our website.
• Yesterday FDF responded to food inflation reaching 3.7% in March 2026. FDF’s statement is on the website.
• Food and non-alcoholic drink prices rose by 3.7% in the 12 months to March 2026, up from 3.3% in the 12 months to February. On a monthly basis, food and non-alcoholic drink prices rose by 0.3%.
• Prices rose the fastest for beef and veal (18.8%), whole milk (12.7%) and confectionary products (11.1%).
• Prices fell for nine categories, with the largest drops for: flours (-6.8%), olive oil (-6.2%), and pizza (-2.6%).
• It will take 7-12 months for cost pressures on manufacturers to feed through to consumers.
• FDF is calling on the UK government to introduce time-limited, bespoke Food and Drink Energy Support (modelled on Energy Bill Relief Scheme, introduced following the invasion of Ukraine), including a cap for energy prices for food and drink manufacturers. It should be calibrated to help businesses through the most challenging period of price rises. It should include key SIC codes within food and drink manufacturing that are particularly energy intensive (which were identified as part of EBRS), and those that use the biggest share of energy.