UK manufacturers missing foodservice trick, says Food from Britain

UK manufacturers are ideally placed to cash in on rapid growth in the foodservice market in continental Europe and the US, according to a new study from regional food and export consultancy Food from Britain (FFB).

However, they had to ditch their island mentality if they wanted to cash in, warned a succession of speakers at a seminar held in London last week to launch the new research.

FFB Belgium senior consultant Olivier Delrue said: “Belgian buyers are very open to high quality imported products and restaurant and cafe owners are increasingly coming over to London to copy what we are doing here at chains like Pret a Manger. There is also a real trend to trade up, which is good news for potential exporters.

“However, many UK manufacturers still think the world ends at the English Channel.”

Several firms including Marlow Foods (now part of Premier Foods) and New Covent Garden Soup had achieved success in the Belgian foodservice market, while others like Mondo Foods had struck major deals in the retail sector, he said.

However, many simply “react to enquiries from interested buyers, or only call us when they have lost a contract and they are trying to shift surplus product”, he said. “Basically, they are reactive, not proactive. They need to think strategically about where their strengths are and how they could really find their niche in an overseas market.”

The logistical challenges of supplying the Belgian foodservice market with short shelf-life products were “not a problem”, he added. “It's quicker to get to Brussels from, say, London, than it is to get to Scotland.” He added: “Dealing with Belgian buyers can also be quite a pleasant experience compared to what you might face in some other countries. They are food specialists first and negotiators second.”

Foodservice was growing faster than retail in many of overseas markets, with particular growth in ethnic foods, pre-prepared meals and snacks, and healthy convenience food, areas in which UK manufacturers had particular expertise, said Chris Brockman, head of research and consultancy at FFB.

“Traditionally, UK exporters have tended to focus on retail, where data is more readily available, markets are less fragmented and the infrastructure is less complicated,” he said. “However, some of the really exciting opportunities are at the premium end of the foodservice market, which has doubled in Belgium over the last decade and is growing rapidly in France, the Netherlands, Spain, Portugal and the US.”

Sandwich chains had sprung up all over France over the last six years as lunchtimes became shorter and the demand for convenient food to eat on the move grew, he said. “A raft of opportunities also exist for UK suppliers in countries with a large British ex-pat and tourist population, such as Spain and Portugal.”

While heritage was important to consumers outside the UK, 'Britishness' alone was not going to sell products, particularly in the catering sector, added Pavel Kolarov, senior consultant at FFB, North America. “First and foremost,” he said, “your product has to deliver.”

He added: “The restaurant industry took 25% of the US food dollar in 1955. Now it's more like 47%, and the market is still growing at almost 5%, with particular opportunities for UK suppliers in artisan products, global and ethnic cuisine, health and wellness products, non-allergenic foods and foods and sauces with strong flavours like Thai and Indian.”