Food and Health Innovation Service helps over 100 Scottish companies target £348 billion global health market
Since its launch just over a year ago Scottish Enterprise’s Food and Health Innovation Service (FHIS) has supported more than 100 food and drink companies to develop new products targeting the global health market.
Director of Scottish Enterprise’s food and drink team Maggie McGinlay, said: “The global health, nutrition and wellbeing market is worth around £348 billion so it’s vitally important that we help more Scottish companies tap into the opportunities that this presents.
“Through FHIS, Scottish Enterprise is committed to helping equip companies with the innovative skills and expertise needed to create new or improved products that will allow them to target different markets both at home and overseas – ultimately driving home long-term sustainable growth for the Scottish economy.”
The £5 million FHIS aims to help 400 Scottish companies over five years access Scotland’s leading research in food and health to develop and launch new or improved products. The programme is funded by Scottish Enterprise and Highlands and Islands Enterprise, operated in partnership with Scotland Food and Drink and delivered by Campden BRI. Through FHIS, companies are helped to take research in the commercially lucrative food and health market and translate it into tangible opportunities for Scottish businesses. The FHIS then works with the business to provide technical and commercial support leading to a new or improved product.
Companies that have benefited from the FHIS over the last year include Stirling-based IQ Ingredients – Scotland’s first ‘bean to bar’ chocolate manufacturer that brings to market ‘intelligent foods’ that have research-based health, wellbeing and beauty benefits. FHIS provided technical, marketing and legislative assistance and expert support from food regulation expert Nino Binns to help launch the product.
Edinburgh-based Celtic Sea Spice Co received support from FHIS to help develop a range of seasonings, snacks and other value-added foods using seaweed sustainably harvested from the coasts of Scotland and Ireland. FHIS helped the company develop an understanding of how they could capitalise on the market opportunities for their products as well as find appropriate support to address their technical challenges of working with seaweed.
Other notable achievements for FHIS over the last year include:
· development of a website with a growing library of research and intelligence on the latest science to support innovative products for product developers
· provision of networking opportunities for industry and academia to explore product innovation and help companies understand and commercialise the cutting edge research that is available in Scotland
Cabinet Secretary for Rural Affairs and the Environment Richard Lochhead, said: “Scotland is renowned around the world as a land of food and drink and the industry continues to grow year on year. The Food and Health Innovation Service enables Scottish companies to access the science and technology needed to succeed in the global health foods market.
“This investment will assist Scottish businesses as it aims to help over 400 companies in the next three years. We have already seen the benefits with a number of Scottish food firms developing new products for this very competitive niche market.”
James Withers, chief executive of Scotland Food and Drink, said: “The industry came together through Scotland Food & Drink and produced a single growth strategy for the sector. One of the immediate priorities was to better support companies to meet the growing demand for healthier food and drink. This gave rise to the Food & Health Innovation Service and, only one year into its life, it is great to see it helping companies achieve success in this market already.
“Within our shores we have an abundance of naturally healthy food and drink, produced to world class standards. With the support of projects like FHIS, we are incredibly well-placed to forge Scotland’s reputation in the worldwide healthy food market.”
FHIS sets out to build on Scotland’s international reputation for quality natural products such as berries, fish, meat and oats, as well as research expertise at institutions such as the University of Aberdeen Rowett Institute of Nutrition and Health, Queen Margaret University, the Scottish Crop Research Institute and Heriot-Watt University.
The second FHIS annual conference took place in Perth on Wednesday 20th September. Chairing the event was Scottish Enterprise’s Maggie McGinlay and speakers included the world renowned food and health marketing expert Peter Wennstrom and Kevin Tipton, Ph.D, Professor of Sport, Health and Exercise Science at the University of Stirling.
Research carried out on behalf of Scottish Enterprise has shown that while food and drink companies recognise the potential of the health and nutrition market for their business, they lack the R&D capabilities and food technology expertise to take advantage of new opportunities.
Innovation within the food and drink sector in Scotland has historically been lower than the national average and business expenditure on R&D by the sector accounts for just 1.5% of the Scottish total. The project will help address both these factors and contribute to the industry’s ambition to increase R&D spend from 0.25% to 0.75% of Scotland’s GVA, and ultimately meet the level of the UK’s food processing sector.
It is estimated that the project will help to grow turnover in the participating companies by a combined £80 million within five years, contributing to the industry’s overall ambition to grow turnover from £10 billion to £12.5 billion by 2017.
Scotland Food & Drink is the industry leadership organisation, and has led the development of a strategy for the whole industry. This aims to increase turnover from £10bn to £12.5bn by 2017, and build Scotland’s reputation as a Land of Food & Drink. It also has stretch targets for GVA, R&D spend, productivity and exports. Insert link to SF&D website strategy page
Campden BRI specialises in the practical application of technical excellence to support the food and allied industries through analysis and testing, operational support, research and innovation, and knowledge management. It is the world's largest membership-based food research organisation, with nearly 400 staff based at its three sites: Chipping Campden (Headquarters), Nutfield (Surrey - brewing division), and Budapest (Hungary).