SDI helps Scottish food companies strike US gold

Scottish Development International (SDI) has announced a series of impressive contract wins for Scottish food & drink companies in North America, thanks to a programme of activity designed to help companies increase exports to the region.

Companies including Mackies, Klinge Foods, Innis and Gunn, Deans of Huntly, Mackays, Henshelwood Fine Foods, Harviestoun Brewery, St James Smokehouse, Apple Snapz, Stoats and Lazy Day Foods have benefited from a strategic programme of support from SDI, and as a result are projecting combined new sales of almost £20m in the USA over the next three years.

In 2010, SDI undertook some market assessment work to identify the scale of the opportunity for Scotland across 12 different food and drink categories such as salmon, dairy, and beer.

This report, which is available to any food and drink company in Scotland, has helped to inform the agency’s strategy to help the industry break into North American markets.

The SDI sector strategy for North America includes:

• a programme of 'Doing Business in North America' workshops to provide practical guidance for Scottish food and drink companies on how to develop sales in North America

• a new 'account management' approach to dealing with the top North American food and drink retailers to identify opportunities for Scottish food and drink companies, facilitate introductions and broker new business opportunities
• Scotland Food & Drink Pavilions at key North American trade shows, including Summer Fancy Foods, New York (June 2010), Boston Seafood Show (March 2011) and Summer Fancy Foods (July 2011), which provide platforms for the companies to promote their products to buyers and media.

Anne MacColl, chief executive of SDI, said: “The USA and Canada are important priority markets in terms of the sector’s 'International Strategy', led by SDI and endorsed by the Scotland Food & Drink Executive Group and Board. The US remains the top destination for Scottish food and drink exports, so we are working hard to support our companies in breaking into this market.

“We are pleased with the success of this strategy so far and are convinced that the account management approach to our relationships with key US retailers is really delivering for the Scottish food and drink sector. So far, we’ve had a series of good meetings with retailers such as HEB, Loblaws and Metro and the number of Scottish listings in these stores is on the increase.”

The Scotland delegation to specialist food and drink show, Summer Fancy Foods, last year, has produced some particularly strong results, with companies including Innis & Gunn, Deans of Huntly and Henshelwoods Fine Foods appointing new US distributors as a result.

The agency is hoping to replicate this success at the Boston Seafood Show later this month. SDI will lead a Scottish company delegation to this show for the first time and is hoping to take advantage of the fact that the USA is the top export market for Scottish salmon.

Rural Affairs Secretary Richard Lochhead, who recently visited the US to promote Scottish produce, said: “Scotland has an internationally renowned reputation for superior food and drink. A big part of this is the excellent work done by Scottish Development International and the exceptional product offered by Scottish companies.

“I met up with some of our home-grown companies, such as Walkers, who are proudly flying the flag for Scotland on American shelves. I look forward to seeing the new contracts announced today follow similar success. These contracts are together expected to generate new sales of £20m in the USA over the next three years – an amazing achievement and further evidence of Scotland’s global reputation as a land of food and drink.

“So good is our reputation, in fact, that I was taken aback at the amount of ‘copycat’ products on the shelves in America trading on our valued Scottish identity. An identity that needs maximum protection. Numerous products from different countries use Scotland’s good name to sell their wares; products that Scotland creates to award-winning standard. I want to see more home-grown produce from Scotland being sold in America, to see our businesses and entrepreneurs taking advantage of this vast market opportunity.

“We must protect the integrity of Scotland’s larder to safeguard our brand. The Scottish Government, along with SDI, stands ready and willing to support more of our home-grown talent as they fly the flag for Scotland’s food and drink in the Land of Opportunity.”

Paul McLaughlin, chief executive of Scotland Food & Drink, said: “The export market is absolutely crucial to growing the industry. These Scottish companies are fantastic examples of how exporting can contribute directly to the bottom line. Bolstering our export output can also help strengthen the industry’s already positive image across the world as a Land of Food and Drink.”

MacColl added: “We’re genuinely thrilled that Scottish companies have really grasped the opportunity that has been presented to them, but we still need more companies to get involved in export. We believe that internationalisation is the single biggest growth opportunity for Scottish businesses, so we are constantly hammering this message home.

“We hope that after hearing about success stories like these, even more Scottish companies will be motivated to seek out new international markets, and when they do, they can be sure that there is a whole range of support available through Scottish Enterprise and SDI to help them achieve that international success.”