Investing in the growth of our industry-leading food and drink sector

This edition of Business Bulletin recognises the achievements of North-east Scotland’s industry-leading food and drink sector. Highlighting the successes of new and scaling businesses in product and process innovation, market development and growth, and the leadership they demonstrate.

It also looks ahead to transformational investment in the ONE SeedPod innovation hub that will make manufacturing and production businesses more productive, profitable and sustainable—a beacon for the regional growth ambition and a national asset.

Food and drink is a vitally important growth sector for this region. Providing more than 22,000 jobs in manufacturing and production and turning over more than £2.2billion a year. With a crucial role to play in the region’s future low-carbon economy and the national economy. The region accounts for over 20% of Scotland’s total sector output and is a significant manufacturing sector.

The sector is also ambitious, with an appetite to grow, increase exports and drive productivity.

The performance data shows that the sector has continued to grow yearly. This is a significant achievement, especially in the context of the challenges on costs, supply and labour that businesses have had to deal with in recent years.

What accounts for this growth? It is down to the ambition and drive of the people who lead and work in food and drink businesses. They are passionate about what they do.

They care about their companies and their products. And they keep looking ahead for new opportunities, markets and customers.

Because of these qualities, they are at the forefront of the food and drink industry and are a credit to this famously enterprising region.

The sector’s quality was highlighted in June when the 2023 North East Scotland Food & Drink Awards brought the industry together to celebrate excellence and innovation, delivered by Opportunity North East in partnership with Aberdeenshire Council.

Eleven businesses emerged as winners on the night across 12 categories from an impressive shortlist of 36 companies, from ambitious early-stage businesses to established global brands. The winners included Amity Fish Company Ltd, Barra Berries, Burnside Brewery, Cabezon Beverage, CocoCaramel, Dean’s of Huntly, Farmlay Eggs, Mackie’s of Scotland, Singularity Sauce Co, Summerhouse Drinks Ltd and Vertegrow. Businesses that have continued to grow, launch new products, connect with consumers in new ways and invest in digital transformation, automation and decarbonising their operations.

At Opportunity North East, our role is to support businesses in the sector and the people who lead them to develop new products and markets, innovate and grow, be more productive and create new jobs.

Over the last year, Opportunity North East – working with regional and national partners – has started major initiatives. To boost entrepreneurship, identify investment to support rapid growth, provide access to insights and connect businesses to premium markets, and drive adoption and use of digital and advanced manufacturing technology to enable more profitable and sustainable operations.

And the great news is that the sector’s transformational project for a food and drink manufacturing innovation hub – ONE SeedPod – is breaking new ground. Construction started in May and it will open in late 2024.

David Kilshaw chairs the Board overseeing the project’s delivery. It is a unique £27million investment. It is led and co-funded by Opportunity North East, working with partners, including the Scottish Government, UK Government, Scottish Enterprise and Scotland’s Rural College (SRUC).

The combination of commercial facilities, sector knowledge, insights and expert networks in ONE SeedPod will enable businesses to develop new ontrend products for premium markets, test and implement more efficient and sustainable production and manufacturing processes, and support high-potential new companies to scale their manufacturing and grow faster.

Food and drink is one of our economy’s most dynamic and enterprising industries. I am excited to see what it will achieve next.