The Food and Drink Federation (FDF) urges the Government to enhance financial support for smaller businesses focused on healthier product innovation.
In a recent report, the FDF revealed that food and drink manufacturers invested over £160 million in 2023 alone. This significant investment was aimed at creating healthier options for consumers through various strategies. These strategies included modifying existing recipes to enhance their nutritional quality, developing new and innovative products, and adjusting portion sizes to promote healthier consumption habits.
However, the report highlighted a critical challenge: many businesses, particularly small and medium-sized enterprises (SMEs), lack the in-house expertise and financial resources necessary to pursue this specialized research and development (R&D). This disparity creates a substantial barrier to their ability to innovate and adapt products to meet the growing consumer demand for healthier food choices.
To combat this issue, the Scottish Government launched the Reformulation for Health program. This initiative has successfully provided specialized support to over 80 Scottish SMEs in its first five years. As a result, this program has facilitated the removal of billions of calories and substantial amounts of fat, sugar, and salt from some of Scotland’s most popular food products. Additionally, it has offered crucial support to various sectors, including butchers, bakers, and ready meal manufacturers.
Recognizing the impact of such initiatives, the FDF believes that expanding this successful program to encompass the entire UK with a dedicated £4 million fund would significantly benefit smaller businesses. This financial support would enable them to access the essential resources required to develop healthier recipes, foster business growth, and drive investment in local economies.
For larger businesses, the FDF advocates for broadening the eligibility criteria for R&D tax credits. Such adjustments would help offset the considerable upfront costs associated with investing in product reformulation, thereby encouraging further innovations in healthier product lines.
Karen Betts, chief executive of the FDF, emphasized the importance of innovation in the UK’s food and drink industry. She stated, “The UK’s food and drink manufacturers are some of the most innovative in the world, and FDF members are global leaders in developing new, healthier products. This is about making existing brands healthier by removing fat, salt, and sugar, or by adding fruit, vegetables, and fibre; or by introducing new products to increase the choice of tasty, convenient, affordable, and healthier options for shoppers.”
However, she acknowledged the complexities involved in this process. “This work is complex and takes significant investment. It can be risky commercially and take many years to get a new product from concept to sale. As such, we’re asking Government to act to help mitigate the risk for companies. We’re asking them to broaden access to R&D tax credits to support companies investing in innovation for health. And we’re asking them to more actively support SMEs, who make up 98% of the companies in our sector and for whom the costs of investing in this sort of innovation can be prohibitive.”
Karen further proposed, “With just £4 million, the Government could establish a support scheme for small and medium-sized businesses across the UK. This would help to mitigate the risk of a company carrying out this important work to improve public health, while enabling them to access critical advice and practical support. The Scottish Government’s Reformulation for Health program provides a helpful model here, which over the past five years has seen billions of calories and tonnes of salt removed from food and drink made in Scotland.”
‘Innovation for Healthier Diets’
The FDF’s call for increased government support was made during the recent ‘Innovation for Healthier Diets’ tasting event held in Parliament. This event showcased the significant efforts of UK manufacturers in promoting healthier diets by decreasing fat, sugar, and salt content while increasing the inclusion of fruits, vegetables, and fibre in their products. According to Kantar’s Worldpanel GB Take Home Purchase data, FDF members now contribute a remarkable one-third (33%) less salt, a quarter (25%) less sugar, and 24% fewer calories to the British grocery market compared to 2015.
At the event, manufacturers proudly presented a range of innovative products featuring reduced levels of salt, sugar, and fat, while also highlighting options with enhanced fruit, vegetable, and fibre content. Examples included pasta sauces enriched with extra portions of vegetables, cakes formulated with reduced sugar, and stock cubes crafted with less salt.
