How attractive is the UK market to international suppliers and buyers?

While there are so many uncertainties about the UK market right now, it seems that international businesses remain keen to invest in high growth UK food and drink businesses – with plant based the leading category of interest.

UK supply chain challenges – shortages of lorry drivers, farm labourers, factory workers especially – are certainly an issue, combined with rising raw material costs and inflation coming into the market.  Nor do we yet have a clear picture of the impact on spending patterns (what working environments will be the new normal and how will this affect on-the-go and near office shopping habits? Will spending reduce as inflation bites?).

But many categories and companies are thriving and proving attractive both to suppliers wanting to enter the market with their own brands, as well as trade and private equity purchasers.  According to recent research by Grant Thornton, 43.8% of investments made in UK food and drink businesses over Q3 were from overseas investors (up from 30% in Q2).  Plant based food accounted for 22% of deal volume, with spirits being the second most popular category.

Post-Brexit (and -pandemic) Britain is a different place to what it was in 2019. but there are clearly many big opportunities out there.