“The Food and drink Industry is very important to the economy of the UK. The UK is the world’s fifth largest grocery retail market and the largest in Europe, worth around US$156 billion in 2005” (uk trade and investment 2006 p30).
This sector is the largest manufacturing industry “accounting for 17% of the total manufacturing sector” (defra 1.11.2007) “This scale has made it a strategically important market for both manufacturers and retailers, generating investment from many overseas companies. Food and drink accounts for about 4 per cent of all UK exports and continues to rise strongly ? approximately two-thirds of export trade is with EU countries. The food and drink industry is the UK’s largest manufacturing sector. With sales of £73.7 billion, it accounts for 14.2 per cent of all manufacturing gross value added. Almost 7,000 food and drink companies employ 417,000 people ? 13.9 per cent of the manufacturing workforce. The quality and productivity of UK food manufacturers rival the world’s best”. (uk trade and investment 2006 p30,5.11.2007). From this we can see that the industry appears to be healthy and attractive to investors with the expectancy of exports to rise.
The industry has positively invested in its future as “The Industry spends around £80 million a year on R&D”. (uk trade and investment 2006 p30, 7.11.2007). Its product development is aided by close collaboration with the large supermarket chains that dominate food distribution. These are forecast to have a 91 per cent share of the grocery market by 2010. (uk trade and investment 2006 p30, 5.11.2007).
The UK’s cosmopolitan and generally affluent population drives one of the world’s most diverse and innovative food and drink markets. In 2005, consumers spent £153.82 billion ...