The anticipatory impacts of Brexit are already writ large across the UK's food and drink producers. Our latest review of the UK's Top 150 producers shows that whilst inflation-driven growth has returned, that same inflation has squeezed margins and sent ROCE to 30 year lows.
At a time when there is more uncertainty than ever about the year ahead it would be easy to be despondent. However strong producers are showing they can thrive in these uncertain times. Are you well set to be one of the winners?
Is your product portfolio really addressing the underlying consumer needs as well as it can?
Do you understand how to unlock value from your end to end value chain?
Are you clear where your competitive advantages, opportunities and risks are to be able to move decisively when disruption occurs?
Are you investing to support product innovation and labour productivity?
Brexit driving growth but not profit for the UK’s food and drink industry September 28, 2018 | PRESS RELEASE Revenue growth driven by inflation and weaker pound Revenue growth for UK’s top food and drink producers such as Nestle UK and Arla Foods grew on average by 7.5% in 2017 – the highest rate since 2009 The weak pound saw international exports for food and drink producers increase by 14% However inflation in raw materials caused by Sterling devaluation squeezed producers profit margins, declining by 0.5% points to 6.2% Cost per employee has also continued its upward trajectory, increasing by 6% between 2016 to 2017 Food and drink businesses advised to be active in their response to challenges posed by Brexit to find future growth