Food & drink it s the future! James Withers, CEO, Scotland Food & drink

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1 Food & drink it s the future! James Withers, CEO, Scotland Food & drink

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4 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

5 7 billion in earth Our planet the figures 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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7 The domestic story

8 Hugely important economically (largest manufacturing sector) Build on national reputation, tourism Domestic food renaissance Learn from others whisky, Ireland, New Zealand

9 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 Scotch Whisky

10 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 Scottish Farmed Salmon

11 Change in channel usage by 2012 Less More Discounters 5% 29% Farmers markets & farm shops 7% 26% Online 6% 22% Specialist stores e.g. butchers 8% 23% Neighbourhood stores 9% 16% Supermarkets 7% 13% Hypermarkets 9% 14% Home delivery box 6% 9%

12 Change in ethical purchasing by 2012 Less More Local or regional foods 3% 37% Foods with high animal welfare claims 4% 34% Fairtrade foods 5% 31% Organic foods 11% 15%

13 Importance of Availability of Scottish Food and Drink Scotland Food & Drink / YouGov Scottish Opinion Omnibus Jan 12, Base: All Adults

14 Importance of Availability of Scottish Food and Drink- Regional Variations Fish / Shellfish Fruit / Veg Scotland Food & Drink / YouGov Scottish Opinion Omnibus Jan 12, Base: All Adults

15 Likelihood to Pay More for Scottish Products Scotland Food & Drink / YouGov Scottish Opinion Omnibus Jan 12, Base: All Adults

16 Frequency of Paying Extra for Premium +7% +10% Source: ShopperTrack : Base: All main shoppers in Scotland and London SE Sep 11

17 How do we move to the next level?

18 The Executive Group Key Delivery & Representative Bodies

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20 Grow the Industry to 12.5 Bn by 2017 Reputation as a Land of Food & Drink Premium Health Provenance Innovation Collaboration Sustainability Skills for Growth Scale An inclusive Adding Authentic more target Naturally for our description value Cememting industry Healthy a Core global to the Building Scottish Premium on where the Better reputation, strategy 12.5Bn for You is capabilities appropriate brands we includes economic fishing and have or need and With environmental agriculture Health products Moving Romance to develop up the sustainability available Enhancing to value image stream match Processing demand target 0.7Bn remains 0.6Bn 1 10Bn A STRATEGY FOR GROWTH

21 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!

22 So how have we done?

23 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

24 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

25 Thank