Food and drink business confi dence low likely to persist.

Food and drink business confidence low likely to persist

In publishing its latest Business Confidence Report for Q3 2021, the Food and Drink Federation has summarised its member sentiment, the latest official industry figures and key opportunities and challenges for the sector.

Net business confidence fell by 55% in Q3 2021, they found, dropping to -51% as a result of the ongoing labour shortages and associated issues that are impacting food and drink supply chains (this is the lowest net confidence rate since the height of the pandemic in Q2 2020 (-65.2%) and the biggest drop in confidence since the FDF first began reporting in 2018).

Key findings from the report include severe supply chain disruption being the biggest cause for concern, particularly the transportation of goods with 93% experiencing delayed or missed outbound deliveries and 75% reporting delayed or missed inbound deliveries.

Labour supply issues are not likely to resolve soon, with half of respondents expecting the permanent supply to decrease and 54% expecting the temporary supply to decrease in Q4 2021. Labour shortages also continue to remain across a range of roles in the food supply chain. The most common shortages were HGV drivers, temporary agency workers and process, plant and machine operatives.

Product margins are squeezed, they found, driven by wide-ranging supply chain disruption and rising production costs. An overwhelming majority of businesses also anticipate continued price rises, with 97% of respondents expecting consumer price inflation to increase in Q4 2021. Businesses are full of pessimism, and a further decline in business confidence is anticipated, say the FDF (around half of their respondents expect a further decrease in business confidence in the final quarter of 2021).

Ian Wright CBE, chief executive at the FDF, said: “These results - compiled before the prime minister’s recent disappointing announcement - demonstrate that confidence levels across our sector have been hit by continuing supply chain disruption. On top of this, the confection of increasing uncertainty about Omicron, the UK’s changing trading relationships, and the re-ignition of inflation, all threaten to undermine resilience across the sector. Many businesses now expect disruption and reduced service levels to continue right through 2022 and into 2023.”

Retailers welcome the return of IFE as registration opens for 2022

Visitor registration has opened for IFE (International Food & Drink Event) as the event prepares to return to ExCeL London on 21-23 March 2022 to help food and drink retailers, from independent businesses to large multiples, reinvigorate their product ranges.

In addition to showcasing a wide range of food and drink products and businesses from across the globe, with over 100 countries present at the event, IFE also represents the world’s largest gathering of UK-based suppliers. Visitors will have the opportunity to see and sample products first-hand, meet the minds behinds innovative brands, discover new trends and invest in the growing product categories set to define the future of retail.

The 2022 event will see the addition of the Vegan & Plant-Based Section, in partnership with The Vegan Society, reflecting the continued rapid growth of, and investment in, this section of the market.

The Future Food stage will see leading figures in the food and drink retail space share their expertise, insights and strategies for future business growth and enhancing the customer experience. Numerous sessions across the three days of the event will take a deep dive into the most crucial opportunities and challenges facing the food & drink retail industry.

Louis Tsaparelli of Davin Foods commented: “IFE is a must for people in the industry. It’s a place to meet fellow professionals, put faces to names and build important relationships. You are able to see first-hand the development of new trends within the industry and witness innovative products which are available to sample and utilise within your business.”

Event director Philippa Christer added: “For over 40 years IFE has been trusted by top retailers to facilitate the discovery of exciting and unique products that consumers are clamouring for. If you’re a retailer looking to maximise profits, efficiently source quality suppliers and learn from the very best in the business, then IFE is not to be missed!”

In 2022, for the first time, IFE will be taking place alongside HRC, Hotel, Restaurant & Catering, The Pub Show, London Produce Show and IFE Manufacturing, bringing together over 30,000 key industry buyers and 1,500 innovative suppliers.

Register for your complimentary ticket, and stay up to date with the latest show news, at ife.co.uk.