03 Dec Scottish Food & Drink Manufacturing – A Changing Landscape

The Scottish brand has a great worldwide reputation and can still go a long way.  However a sustainable competitive advantage for Scottish food and drink can only be achieved through delivering unique high quality products and creating unique solutions both for customers and consumers.

Unique solutions require creative minds, sharing ideas, knowledge and resources. Unique solutions invite new skills and competencies and people; not just continuous improvement but constant transformation.

The ability to adapt and deliver with pace has rarely been so important: “It doesn’t matter if you are big or small – only if you are fast or slow” Alan Leighton (Former CEO ASDA).

The consolidation within the mainstream manufacturing of food and drink over the last 20 years, whilst at the same time Artisan production and demand has burgeoned, has created huge disruption and many exciting opportunities. It will continue to do so.

The once perceived benefits of globalisation is now being challenged?

Care for the environment and food waste reduction are of increasing concern worldwide.

Food’s impact on health and wellbeing and the needs of an ageing (Western) population require new solutions.

Some may well have foreseen the growth of convenience, ‘Ready to Cook’, ‘Ready to Eat’, ‘Food to Go’ but how many foresaw the growth of discount retailing and its impact on the traditional retail grocery landscape?  Others have foreseen the growth of low/reduced-fat and sugar-free trends but how many foresaw the stellar growth of gluten-free and now meat-free?

Competition is increasing, technology is breaking down barriers and innovation is accelerating.  To match this, Scottish food and drink producers must develop and leverage deep customer and consumer knowledge and insights. It is not enough to produce great Scotch or Salmon and rely on global economic growth (or devaluation in sterling) to drive demand. We must continue to create, innovate and change. Creativity requires talent.

For the best part of a generation Scotland has had the benefit of young European talent to help support and grow our reputation for fantastic food from Angus berries to Angus beef. More than ever today we must identify, encourage, nurture and develop talent to ensure we can continue to adapt and take advantage of all the opportunities, whether foreseen or as yet unforeseen that the future will undoubtedly hold.

Brexit and the disruption and uncertainty it creates will not change the fundamental supply and demand for food or of food production in the UK, but new legislation and new border controls may well impact supply chains – adding bureaucracy, time and cost.  However, much recent work, driven by the requirements of ‘Modern Slavery’ legislation and ethical supply, to understand and map supply chains puts us in a much better place than before to identify, manage and overcome these risks.

I have been privileged to identify the talent which has been able to support several of these initiatives and help provide the Scottish food and drink industry with the talent to meet these challenges and create new solutions.