Funding Boost for Scottish Food & Drink

A £1.1 million funding boost for Scotland’s food and drink industry was announced today by Rural Affairs Secretary Richard Lochhead ahead of the Royal Highland Show.

The support from the Scottish Government, Scottish Enterprise and Highlands and Islands Enterprise (HIE) aims to drive industry growth to help achieve £12.5 billion turnover by 2017.

Initiatives to be funded through the investment include:

• £120,000 to support events such as Scottish Food & Drink Fortnight
• £260,000 to encourage better access to markets
• £730,000 to support the core costs of Scotland Food & Drink*

Announcing the package, Mr Lochhead said: “Scotland’s food and drink larder is one of our greatest assets, representing excellence in every field from our quality Scotch meat, sustainable seafood and iconic whisky to our home-grown oats and soft fruits.

“I am delighted that some of this funding will support business attendance at events across Scotland. I am particularly pleased that we have been able to support key events in this year’s cultural calendar, including the Royal National Mod, the Scottish Traditional Boats Festival and the Edinburgh International Book Festival.

“This will help to promote and build Scotland’s reputation as a Land of Food and Drink among consumers, which is crucial to the economic growth of the industry. Latest figures show that sales of Scottish brands across the UK increased by £28 million in the year to May 2011, increasing by nearly a third since 2007.

“I am proud of the work Scotland Food & Drink has achieved so far in moving the industry towards its target of delivering an increased turnover of £12.5 billion by 2017, and I hope this funding will further boost the success of the sector.”

Scotland Food & Drink's chief executive, Paul McLaughlin, commented: “This investment continues the public/private sector partnership model that has worked so well for the last four years.

“Scotland Food & Drink will continue to lead and drive growth across the industry and the £1.1m announced today will provide us with the resources to do this effectively.”

Maggie McGinlay, director of food and drink at Scottish Enterprise, said: “This sector is of huge importance to the economy and has demonstrated strong growth in turnover and GVA, now employing five per cent of Scotland’s workforce, with exports worth a record £4.5 billion in 2010.

“The work of Scotland Food & Drink has played a significant role in this success and clearly demonstrates how effective partnership working can bring about real economic benefits.

“We are confident that our investment in Scotland Food & Drink over the next four years will help the sector achieve its growth ambitions as set out in the industry's Fresh Thinking strategy, and we look forward to continuing to work with the organisation and our other partners.”

Chris Taylor, head of food, drink and tourism for HIE, added: “Our partnership with Scotland Food & Drink has benefited a diverse range of outstanding businesses based in the Highlands and Islands.

“Practical initiatives like the Access to Market programme can have a major impact on growing sustainability for businesses - some of which are producing the highest quality of produce from our most rural Scottish communities.”

Scotland Food & Drink is a leadership organisation - supported by the Scottish Government - tasked with growing the value of Scotland's food and drink sector, making it more profitable and delivering greater global success in a challenging and competitive environment.

Established in 2007, it is a not-for-profit organisation created to guide food and drink companies of all sizes towards increased profitability. Its mission is to grow the industry’s value from £10 billion to £12.5 billion by 2017 and build Scotland's international reputation as 'A Land of Food and Drink'.

Between May 2010 and May 2011, retail sales of Scottish food and drink brands in Great Britain (GB) increased by £28 million. Between May 2007 and May 2011, retail sales of Scottish brands in GB increased by £453 million (or 32.3 per cent). (Kantar Worldpanel figures).

The funding package comprises:

Scottish Government providing £120,000 to support businesses attending food and cultural events including:

• Crail Food Festival (17th-19th June)
• Taste of Grampian, Inverurie (4th June)
• Scottish Traditional Boat Festival, Portsoy (2nd-3rd July)
• World Pipe Band Championship, Glasgow Green (13th August)
• Edinburgh International Book Festival (13th-29th August)
• Orkney International Science Festival (1s -17th September)
• Living Food at Cawdor, Cawdor Castle, Nairn (24th September)
• BBC Good Food Show Scotland, SECC, Glasgow (21st-23rd October)
• Royal National Mod, Stornoway & wider Western Isles 14th-22nd October
• Wigtown Book Festival, Dumfries & Galloway (23rd September-2nd October)
• Edinburgh's Hogmanay (31st December)
• Riverside Seafood Festival, Riverside Museum, Glasgow (6th-7th August)

Scottish Enterprise is providing £730,000 support over the next four years to support the core costs of running Scotland Food & Drink.

In addition, Highlands and Islands Enterprise is providing £260,000 to support the Scotland Food & Drink Access to Markets fund, including activity such as Meet the Buyer events, exhibitions and development of the Access to Markets section on the Scotland Food & Drink website.

This funding is a 50/50 partnership between public sector and the industry.