How optimism and people can help your food and drink business grow

The importance of being optimistic was a common theme for speakers and guests at last week's first annual conference on The Future of Food & Drink in the South West - and alongside the people in and around an organisation these was seen as the biggest opportunities for growth in 2024 and beyond.

The event was instigated by Taste of the West together with Bishop Fleming and Trowers & Hamlins, with the theme “Fostering Economic Growth and Sustainability”, and attracted an array of businesses and local leaders from organisations spanning entrepreneurial start ups through to multi national enterprises talking passionately about their view of the world now, and what is needed to spearhead sustainable growth in the coming years.

The Future Of Food And Drink, Food Works SW

Hosted by Food Works SW, it was the perfect setting to be at the regions premier food and drink innovation centre offering business support from concept to launch to help start-up and scaling businesses throughout the area. The conference brought together a panel of speakers who represented all parts of the region's food and farming industry, able to share their insights, knowledge and experience with the audience focusing upon the past few years, and their ideas for the the challenges and opportunities that lie ahead.

The need for strong leadership to feed the nation

Together we heard an introduction from John Sheaves, CEO of Taste of the West who bring cohesion and support as the largest independent regional food group, and support for the food and drink businesses from Cornwall through Devon, into Somerset, Gloucestershire, Wiltshire and Dorset. Their leadership within the region for many organisations who are members is renowned and unwavering, bringing peers together to talk and share thoughts around how to not only survive, but to thrive in the years ahead.

Fast following we had an overview from Karl Tucker, Chair of The Great South West Partnership and Yeo Valley Farms, who took time to talk about the value of food and nutrition, and the increasing focus around the fairness of transactions spanning the value chain within the industry - the discrepancy between supplier costs and customer pricing. It reminded us in these high inflationary times which have brought increasing amounts of uncertainty, to really think about the importance our region and the many talented people who have the ability to be part of the transformation of our future. The competitive intensity is not subsiding and the future opportunities within the UK as well as abroad remain for businesses who focus upon productivity, quality, and reducing waste to bring their brand and products to consumers in other regions in the world, given the high reputation surrounding many British F&B businesses.

Karl Tucker, Yeo Valley, Great South West

”The region’s fertile soils, mild climate, and extensive coastline provide a diverse range of high-quality produce that has led to a strong tradition of farming and fishing. Our food and drink sector generates over £7 billion annually and supports over 119,000 jobs - family farmers and producers, small-scale artisanal producers and large-scale manufacturers and exporters. This thriving sector makes the region uniquely positioned to contribute to the UK's food security, by promoting sustainable farming practices, and supporting a diverse and resilient food supply chain.” greatsouthwest.co.uk/great-green/

Mel Squires MBE FRAgS who is Regional Director at the NFU, highlighted the number of SME organisations we have in the southern region, with around 11.5k family farms operating over many generations - and the many challenges they have experienced with particular note around costs and cashflow in most recent times. The industry seems to be moving into a significant phase of restructuring and diversification, particularly around the sustainability agenda, with increasing focus upon biodiversity and nature friendly practises to help the move to net zero by 2040.- so farming can actually be part of the solution rather than seen as one of the main emitters of carbon.

She talked about how the Government seems to be waking up and investing to support the sector, with an eye on meeting some key targets which span the various strands within farming. As a union acting like a local authority to farming, they have a major role in leading local farmers into a stable and sustainable future, championing both British and regional agriculture and horticulture. And one key drive in recent years has been to support the project which maps the South West food supply chains with the aim to boost the amount of locally produced food in public procurement. As food supply chains remain fragile, integrating farming systems with environmental support schemes will ultimately help our food security roadmap whilst ensuring we keep in mind the ESG needs and how we manage compliance against the necessary codes of practise the industry has in place now and in the future.

Jennifer Malone took the stage next, representing Ecosurety who like Maia Growth Partners, are also a B Corp accredited organisation with a keen focus upon impact. With the new Extended Producer Responsibility (EPR) measures now in place since January 2023, the bi annual reporting requirement has put added pressures on many businesses as they have been discovering the need to submit their data up until July 2023. In effect this is placing a greater focus upon the packaging each producer puts into the marketplace at the end of its life, thereby encouraging a more circular economy through this single point of compliance - and simply put there are four key steps which are needed: prepare, collect, comply , improve.

Why people are key to a successful food and drink sector

Having bought and sold 7 businesses spanning locations such as Bristol, Exeter and Falmouth, Chris Ormrod of Cakesmiths has seen some turbulent and challenging times but recognised that quite recently we have seen inflation beginning to ease, and consumer behaviour settling. He talked about having a clear business proposition being key, yet not enough time is spent building a people focused culture where communications, celebrating successes (and recognising failures too), and ensuring commitments are made and work towards. ESG is important for the future of business, many place a lot of focus upon the environment and maybe not enough towards the social aspects and the many citizens in and around an organisation who essentially ensure its ultimate success.

Chris Milton formerly of Thatchers Cider brought the discussion back to the consumer, and their shopping experience which most agreed is disappearing as many retailers and food service providers look the same, and don’t differentiate how people find not only the shops and restaurants they use but the way in which they buy their groceries or meals. Knowing what your ultimate customer wants,, what excites them, and having the flexibility to think differently and find different routes to market can be something that can help define the future growth opportunities for your brand.

Every speaker gave a view on their perspectives on the future; all agreed that food and drink is integral to the South West of England:. No wonder that participating in this vital sector is a rewarding activity that prompts tenacity in its members, and it was really encouraging to hear their views on the future.

Driving growth is the biggest challenge and opportunity

Although the recent economic environment has been very challenging with many pressures on cost, price and cash flow, increasing obligations for compliance that might well have  knocked confidence, the majority of attendees report improved trade in 2023 and anticipate an improved trading environment for 2024 with opportunities for diversification, premiumisation and export. The event ended with two polls of the audience, asking for one word to sum up:

• The greatest challenge for your business in 2024? and,

• The most exciting opportunity for your business in 2024?

Given the theme of the event it’s no surprise that the word clouds for both questions were dominated by one word - “Growth”. And People - in the form of customers, suppliers and of course colleagues and consumers!

How optimism can help your business business grow

This optimism is backed up by research through a survey of business response to the pandemic which found that optimistic entrepreneurs were more likely to adapt and innovate; and more importantly to deliver business growth. This is because optimism helps businesses to see opportunities in the midst of challenges. It also motivates them to keep going even when things are tough.

Optimistic people are more likely to see opportunities where others see obstacles. They are also more likely to persevere in the face of challenges. This can lead to a number of benefits for businesses, including:

• Increased innovation: Optimistic people are more likely to think outside the box and come up with new ideas. This can be a valuable asset for businesses in the food and drink sector, which is constantly evolving.

• Improved resilience: Optimistic businesses are better able to bounce back from setbacks. This is important in the food and drink sector, which can be affected by external factors such as weather conditions and consumer trends.

• Increased employee engagement: Optimistic leaders tend to create a more positive work environment. This can lead to increased employee engagement and productivity.

With decades of experience in the industry, here are our suggestions on how you can foster optimism in your food and drink business:

• Set positive goals: When setting goals for your business, focus on what you can achieve rather than what you might not be able to achieve.

• Celebrate successes: Take the time to celebrate the successes of your business, both big and small - ask your team “what went well last week?”. This will help to create a positive and optimistic atmosphere.

• Learn from failures: When things don't go according to plan, don't dwell on the negative. Instead, learn from your mistakes  - ask your team “what did we learn?” and move on.

• Surround yourself with positive people: The people you spend time with can have a big impact on your outlook. Make sure to surround yourself with positive people who support you and your goals.

Optimism is a powerful tool that can help your food and drink business to grow and thrive. By following the tips above, you can create a more optimistic culture in your business and reap the benefits that come with it.

Our thanks to John Sheaves, Fleur Lewis and Stuart Mathews for the invitation. To find out how our skills’ knowledge and experience can help you and your food business grow, just drop us a line here.