The fourth annual Bank of Scotland report, Fresh Opportunity & Growth, released August 27th, noted that the food and drink industry will create an additional 14,000 new jobs by 2020 as producers forecast an average turnover growth of 19%.
A press release by the Bank of Scotland, Significant growth on the table for Scottish food & drink industry, highlights some notable topics from the report including:
- Scottish jobs boost
- Innovation driving growth and improved productivity
- Scottish provenance proving popular on international stage
- Industry challenges
Additionally, food and drink producers have recognized that planning for long-term growth involves investing in innovation which can boost profits. The report revealed that nearly two thirds (62%) of food and drink producers plan to achieve growth by innovating new products, with businesses saying they will invest 27% of current turnover back into research and development over the next five years.
Graham Blair, area director, Scotland, Bank of Scotland Commercial Banking, said: “Scottish food and drink manufacturers of all sizes are making ambitious plans for significant growth, cementing the sector as one of Scotland’s key economic contributors.
“Collaboration is high on the agenda for firms looking to invest in R&D over the next five years, a positive sign that the industry can continue to build on its already strong reputation for more traditional Scottish food and drink produce, while
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“Scotland’s food and drink sector has a significant impact on Scotland’s Gross Value Added and this year’s report gives every indication that this input will become even stronger.
“Bank of Scotland continues to support many of the producers operating within this vibrant sector and is proactively seeking opportunities to invest in its continuing success story.”
James Withers, chief executive at industry body Scotland Food & Drink, said: “One element of Scotland’s reputation for world-class produce is our heritage and tradition, but that can still marry well with smart product innovation, tapping into fast-changing consumer and market trends.