How the Scottish Food and Drink Industry transformed itself Presented by Alistair Gray

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1 How the Scottish Food and Drink Industry transformed itself Presented by Alistair Gray 1

2 We Declare Landmark documents in Ireland s History 2

3 In the Beginning Metric Turnover(excl Whisky) Exports 4.2bn 0.5bn Employment 48,000 Added Value/Emplo yee 22,000 State of the Industry Fragmented Fractious Noisy farmers and catchers dominate Weak processing companies/sector Fighting Few linkages; many committees Public Sector under pressure 3

4 By 2011 KPI 2000 Turnover(excl Whisky) 4.2bn bn Exports 0.5bn 3.0bn Employment 48, ,000 Added Value/Employ ee 22,000 60,000 State of the Industry Integrated Network Collaborating Performing with strong linkages Industry-led together in a special company 4

5 Scotland s Food & Drink Cluster 1999 Breeding Co s Feed Farmers Fish Farming Fishing Industry Auction Marts Fish Markets Abattoirs Specialist Growers Critical linkage - strong Critical linkage - medium Critical linkage - weak Basic Processing Fish Poultry Red Meat Dairy Vegetables Cereals Imported Commodities/ Raw Materials Upgrading & Innovative Institutions Rendering/ By Products Value Added Processing Prepared Meats & Fish Ready Meals Gourmet Foods Snacks Bakery & Confectionary Non-Alcoholic Drinks Beer Research Institutes e.g SABRIs Universities Training Providers Colleges Food Brokers Wholesalers Distributors In Mkt Whisky Agents/ Distrib s Value Added Ingredients Infrastructure/services Customers Multiple Retailers Discounters Independ t/ Speciality Retailers Food Service Further Processing Outwith Scotland Overseas Markets No presence Weak Medium Strong Key driver Consumers Equipment Suppliers Packaging Transport and Distribution Legislation Marketing/ Design Market Intelligence Industry Bodies Specialist Consultants

6 Focus for the Strategy High Market Attractiveness Meal Solutions Natural & Organic Area for Focus Game Food Service? Excellent Raw Materials Baked Goods Beers Water Whisky Low Low Scotland s Competitive Advantage High

7 Scottish Enterprise Priorities High Importance to Strategy Branding SF&D Awards Skills ISG Conf. Series Logistics Forums Charis SF&D.com Red Meat Food Futures Operating Efficiency Scottish Seafood Health Enhancing Foods SDI Trade Food Service NPD Retailer Relationships Inward Investment GIFB SMART Farms Low Low Impact in High

8 Proud of our Wee Dram 8

9 Steady Sustainable Growth in Value 9

10 More than R&D and Training 10

11 Adding Value within 5 years 11

12 Stakeholder Approval Industry not public sector led Longevity and continuity of ISG Public/private partnership Scottish Executive involvement Strong engagements of firms on the ISG and growing engagement in the firm base outside the membership of the ISG. Tangible achievements (notably food skills group, retail account management, Scotland Food & Drink). A sense of reinvigoration, growing momentum and success 12

13 13

14 Big, Augacious Goals ddrink.org/about-us.aspx 14

15 2010 Model for Growth Grow the Industry from 7.5bn to 10bn Scotland Recognised as a Land of Food & Drink Mission Vision Reputation Collaboration Innovation Skills Priority Areas Sustainable Economic Growth

16 Industry Strategy Model Grow the Industry to 10 Bn by 2017 Reputation as a Land of Food & Drink Mission Vision Premium Health Provenance Strategy Sustainability Innovation Collaboration Skills for Growth Consolidation Capability

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18 Funding the Growth Now full of entrepreneurs, redefining the business Many models of funding for growth avoiding the banks Examples include: Venture capital Bonds and mini-bonds Multi-investor Grants and loans as much in the health business as it is the food business 18

19 In Summary On the back of BSE and Foot & Mouth Clear focus big difficult decisions Formation of Scotland Food & Drink critical industry led; everyone on board Membership organisation 90% processors and farmers By 2012 Scotland s best performing industry sector 2017 targets hit in 2012 Challenge for Ireland You whipped us at Rugby, but at Food & Drink..Join us in the New Order of the World League! 19