INTELLIGENT COMMENT AND INSIGHT INTO THE LATEST GLOBAL INDUSTRY MARKET TRENDS

october

17th

by Analyst comment from RNCOS

Weak Pound Drives Export of Food and Drinks in the UK

The food and drinks exports from UK touched a new record of £11.5 Billion in 2007, an upshot of 9.1% over 2006, fuelled mainly by rising demand and the weakening pound.

Britain registered a new record in food exports during 2007. The total value of produced and processed food exports was pegged at £11.5 Billion, an increase of 9.1% over 2006, according to the UK government’s export agency, Food from Britain.


Food from Britain disclosed that Poland was the biggest importer of British food and imported £47 million worth of British food, a 54.7% hike over the previous year. Scotch whisky remains Britain’s single largest export product and it posted a 12.7% hike in exports and touched £2.8 Billion. Whisky exports to Singapore grew by stupendous 84% and to Germany by strong 62% in 2007, thus setting a new record. Also, cheese exports witnessed an 85% growth since 2000, and rose 4.4% in 2007.

Experts in the UK food industry believe that the primary driver of food exports during 2007 was the increasing demand for Twinings tea and Kent beer by the Polish consumers partly due to the return of thousands of Polish migrants who picked up the British tastes during their stay in the UK.

Revival of the UK food exports and a substantially high demand for quintessentially and quirky British brands in foreign markets also increased the export. The marketing methodologies employed by the British food and beverage companies in other countries are also paying off.

Also, the weakening of pound is also helping the UK food and beverage export industry. The export companies buy the British food products at relatively lower prices and sell them at higher prices in foreign markets, which give boost to the export revenue.

The UK food exports have witnessed a boom on account of their distinct taste and rapidly growing popularity. At the same time, the smaller companies in UK’s food manufacturing industry have come to realise that they have to find new foreign markets in order to save themselves from being taken over by larger rivals, thus fuelling the overall revenue generation.

Related Research: UK Health Drinks Market

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