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Food & drink its the future! James Withers, CEO, Scotland Food - - PowerPoint PPT Presentation
Food & drink its the future! James Withers, CEO, Scotland Food - - PowerPoint PPT Presentation
Food & drink its 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
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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
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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
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The domestic story
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- Hugely important economically
(largest manufacturing sector)
- Build on national reputation, tourism
- Domestic food renaissance
- Learn from others whisky, Ireland,
New Zealand
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Scotch Whisky
- 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
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Scottish Farmed Salmon
- 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
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5% 7% 6% 8% 9% 7% 9% 6% 29% 26% 22% 23% 16% 13% 14% 9%
Less More
Discounters Farmers’ markets & farm shops Online Specialist stores e.g. butchers Neighbourhood stores Supermarkets Hypermarkets Home delivery box
Change in channel usage – by 2012
Source: IGD Shopper in 2012 – Is Your Business Ready for Them? 2009
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5% 11% 37% 34% 31% 15% 4% 3%
Less More
Local or regional foods Foods with high animal welfare claims Fairtrade foods Organic foods
Change in ethical purchasing – by 2012
Source: IGD Shopper in 2012 – Is Your Business Ready for Them? 2009
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Scotland Food & Drink / YouGov Scottish Opinion Omnibus Jan 12, 2012. Base: All Adults
Importance of Availability of Scottish Food and Drink
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Scotland Food & Drink / YouGov Scottish Opinion Omnibus Jan 12, 2012. Base: All Adults
Fish / Shellfish Fruit / Veg
Importance of Availability of Scottish Food and Drink- Regional Variations
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Scotland Food & Drink / YouGov Scottish Opinion Omnibus Jan 12, 2012. Base: All Adults
Likelihood to Pay More for Scottish Products
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Source: ShopperTrack : Base: All main shoppers in Scotland and London SE Sep’11
Frequency of Paying Extra for Premium
+10% +7%
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How do we move to the next level?
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The Executive Group – Key Delivery & Representative Bodies
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A STRATEGY FOR GROWTH
Grow the Industry to £12.5 Bn by 2017 Premium Health Provenance Reputation as a “Land of Food & Drink” Innovation Skills for Growth Collaboration Scale Sustainability Core to the strategy is economic and environmental sustainability Naturally Healthy Better for You Health Enhancing £0.7Bn Authentic description Scottish where appropriate Romance the image £0.6Bn Adding more value Premium brands Moving up the value stream £1 Bn Building on the capabilities we have or need to develop Cememting a global reputation, With products available to match demand An inclusive target for our industry £12.5Bn includes fishing and agriculture Processing target remains £10Bn
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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!
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So how have we done?
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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
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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
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