Food & drink its the future! James Withers, CEO, Scotland Food - PowerPoint PPT Presentation

Food & drink – it’s the future! James Withers, CEO, Scotland Food & drink

The China story • 960,000 millionaires in China • 133 cities of population 1M or more • 44% of all luxury goods bought by Chinese by 2020 • Scotch whisky exports grew 24% to China in 2010

Our planet – the figures • 7 billion in earth • 80 million added each year, increase slowing • 9.22bn peak in 2075 • Rapid urbanisation – 20% growth in next 10 years, increasing affluence • By 2020, 1.2bn will be born into middle class in Asia Pacific

The domestic story

• Hugely important economically (largest manufacturing sector) • Build on national reputation, tourism • Domestic food renaissance • Learn from others whisky, Ireland, New Zealand

• Annual exports of £4bn - Scotland‟s leading export • 34 bottles a second shipped worldwide • Value of global market for Scotch surpasses Cognac and Champagne combined • Nearly 10,000 people directly employed with over 30,000 additional jobs in supporting industries • 106 distilleries in operation with 1.2m people visiting them each year, contributing over £20M to local economy Scotch Whisky

• Scotland is the 3rd largest salmon producer in the world and has a 10% share of the global market • Scotland produced 145,000 tonnes of Atlantic salmon in 2008 • Scottish aquaculture industry is valued in excess of £500m • Exported to over 60 countries representing 40% of Scottish food exports and is worth £150m to the economy • Awarded „Protected Geographic Indication‟ status and the prestigious „Label Rouge‟ French quality award Scottish Farmed Salmon

Change in channel usage – by 2012 Less More Discounters 5% 29% Farmers ’ markets & farm shops 7% 26% Online 6% 22% Specialist stores e.g. butchers 8% 23% Neighbourhood stores 9% 16% Supermarkets 7% 13% Hypermarkets 9% 14% Home delivery box 6% 9% Source: IGD Shopper in 2012 – Is Your Business Ready for Them? 2009

Change in ethical purchasing – by 2012 Less More Local or regional foods 3% 37% Foods with high animal 4% 34% welfare claims Fairtrade foods 5% 31% Organic foods 11% 15% Source: IGD Shopper in 2012 – Is Your Business Ready for Them? 2009

Importance of Availability of Scottish Food and Drink Scotland Food & Drink / YouGov Scottish Opinion Omnibus Jan 12, 2012. Base: All Adults

Importance of Availability of Scottish Food and Drink- Regional Variations Fruit / Veg Fish / Shellfish Scotland Food & Drink / YouGov Scottish Opinion Omnibus Jan 12, 2012. Base: All Adults

Likelihood to Pay More for Scottish Products Scotland Food & Drink / YouGov Scottish Opinion Omnibus Jan 12, 2012. Base: All Adults

Frequency of Paying Extra for Premium +7% +10% Source: ShopperTrack : Base: All main shoppers in Scotland and London SE Sep’11

How do we move to the next level?

The Executive Group – Key Delivery & Representative Bodies

Grow the Industry to £12.5 Bn by 2017 An inclusive Authentic Adding more target for our Naturally description value Reputation as a “Land of Food & Drink” Cememting a industry Healthy Core to the global Scottish where Premium Building on the Better for You reputation, strategy is £12.5Bn appropriate brands Premium capabilities we Health Provenance includes fishing economic and have or need and agriculture With products environmental Health Romance the Moving up the to develop sustainability available to Enhancing value stream image Sustainability Processing match demand target remains £0.7Bn £0.6Bn £1 Bn Innovation Skills for Growth £10Bn Collaboration Scale A STRATEGY FOR GROWTH

The work just now • Access to markets – building UK sales of Scottish • Insights – market intelligence • Food & Health Innovation Service • Skills Academy • Supporting F&D companies to grow • Social media/internet • Promote our strengths!

So how have we done?

The growth industry • £11.9billion – (up 20% since 2007) • Food exports crossed £1bn (up 49%) • Manufacturing crossed £9bn • Sales of Scottish up 32% - £450M in GB

Scotland’s strength • Reputation • Affinity with – and pride in - the country • Natural products • Product innovation and adding value • Collaboration will be critical • R&D crucial • Need producers to invest • Need to the right people & right skills

Thank you! james.withers@scotlandfoodanddrink.org @scotfoodjames