Dive Brief:
- The value of branded food and non-alcoholic drink exports in the UK rose 6.2% to £2.4 billion in the first half of the year, according to the Food and Drink Federation’s last set of pre-Brexit figures.
- Branded exports to non-E.U. markets increased 14% to £93.7 million year over year.
- Exports to E.U. countries saw a smaller uptick of 2.9%, or £47.5 million.
Dive Insight:
Brexit has been a topic of discussion in the food and beverage industry as local and international manufacturers and ingredient suppliers determine how Britain's exit from the E.U. could impact sales, costs and operations. Pre-Brexit, the pound's weaker value had made U.K. exports more competitive. After the decision was announced, the value of the pound plunged, so exports in food and beverage could also continue to rise.
Non-U.K. countries may consider taking advantage of the situation and capitalize on the improved purchasing power against the pound while they can. If U.S. manufacturers want to make a product with U.K. ingredients companies, now is the time.
However, U.K. manufacturers are not optimistic about the medium-term post-Brexit prospects for the industry worldwide, according to a July survey. About half of U.K. companies (45%) said it could take at least five years before the full extent of Brexit’s consequences are apparent. That includes the effects of currency fluctuation and devaluation of the sterling in the near term and securing access to European markets and workers in the long term.