The UK is leading the way in the global fresh prepared food market - but the industry must ensure it puts consumer needs first, ágúst Gudmundsson of the Bakkavör Group has warned.
In an address to the Oxford Farming Conference this week, the chief executive of the Icelandic food giant stressed the importance of the UK’s role in leading the way and getting a “head start” in the still growing fresh prepared food market. “It is a great asset to us to use the UK as a springboard for global business,” he said.
“We were shocked to see the state of the factories and food industry in the US - they are 40 to 50 years behind the UK.
“Companies all over the world look to you, as you have everything it takes here. It is a great opportunity for the UK to capitalise and get a head start [in the fresh prepared food market],” he added.
“People want to experience new food, enjoy it and consume it,” said Gudmundsson. “There is absolutely no way a sustainable business is able to grow using government-dictated ‘rules’ - you need to answer consumer needs.”
He told FPJ: “[Businesses] need to expand and think outside the box as we are in an industry highly influenced by government policy.
“We have strong growth in Europe and China. Outside the UK, the fresh prepared food market is well behind the UK. If the world does not fall apart, we will certainly have strong growth and maintain strong relationships with a lot of growers and seed companies.”
Bakkavör registered more than £1.5 million turnover last year, with £500m invested straight back into produce - half of which was sourced in the UK.
The UK accounts for 80 per cent of Bakkavör’s business, with leafy salads alone representing a £432m market, to which it contributes 130m bags a year. The company now has 66 factories across the UK, China, Belgium, Italy, France, Spain, the Czech Republic, South Africa and the US, following an acquisition spree in its 22 years of business.
Gudmundsson pointed to volatile prices as a concern, as global pressures have forced raw material and oil prices upwards in the current climate. “Innovation is the key [to surviving the recession]. Everyone today is looking for something else, something new, something better. Supermarkets do look and listen to such people and ideas - it is a lot of time and investment but it is the only way forward,” he said.
When asked whether attitudes had changed in relation to genetically modified food, Gudmundsson said: “It is a perception issue with GM. I think retailers would love to sell them. I do not think there is a problem with food safety; it may be just a political thing.”
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