Top brands announce expansion plans at British Business Embassy Retail, Food and Drink Summit

British firms announced substantial UK and overseas investment at the British Business Embassy Retail, Food and Drink summit in London. The summit was one of 18 organised by UK Trade & Investment during the Olympic and Paralympic Games to showcase British industry and promote international business opportunities.

Speaking at the summit, UK’s Business Secretary Dr. Vince Cable said: “The retail and food and drink sectors are major contributors to the UK economy. Retailers employ almost three million people, and food & drink is our single largest manufacturing sector worth approximately £25 billion a year. Government is committed to working closely with firms in these sectors to stimulate growth and encourage new investment opportunities.”

New retail strategy

UK Trade & Investment’s new retail strategy is aimed at supporting the sector by identifying the markets presenting the biggest opportunities for international development and expansion, and delivering a market access programme for the UK retail industry. Particular attention will be paid to the UK’s world-class multi-channel offer for the retail sector, and to opportunities presented by the increasing global focus on sustainability, health and wellness.

The UK has a rich and diverse retail environment that includes many brands with international recognition, from Harrods to Tesco and from Burberry to Next. Events such as London Fashion Week, one of the world’s premier fashion events, ensure the UK continues to be a leading international tourist/consumer destination.

Meanwhile, London is seen as a world shopping Mecca, mixing the history of Britain’s leading heritage brands with the latest fashion and technology. Europe’s largest shopping centre, Westfield Stratford City, has opened at the Olympic Park in London, and along with its West London shopping centre coupled with Oxford Street and surrounding West End, offers some of the finest retail experiences in the world.

International investment

International business in terms of exports as well as inward and outward investment was confirmed and showcased at the British Business Embassy. This included Nestlé, marking another milestone in the firms programme of investment in the UK amounting to £ 500 million for manufacturing facilities over the next three years.

Nestlé, which also sponsored the Retail, Food and Drink Summit, opened its first UK factory in 1901. The investment announced will support the business in its ambition of becoming the UK’s number one trusted nutritional advisor to healthcare professionals, caregivers and patients.

Other firms included Boots who announced plans to grow its portfolio in Thailand by over 50 per cent in the next three years from 200 to over 300 stores. It has also just become the first ever pharmacy chain in Thailand to have 100 per cent of their stores accredited by the Thai Pharmacy Council.

Additionally Tesco Lotus – Tesco’s business in Thailand which has more than 1,000 stores – is opening three new state-of-the-art distribution centres. This substantial investment builds on the progress Tesco Lotus has already made to develop retail infrastructure in Thailand, will help Tesco Lotus build on its existing work with over 9,000 local Thai suppliers and SMEs, and will increase the company’s employment of local people. Tesco Lotus plans to recruit at least 9,000 additional staff in Thailand this year.

Furthermore, William Santus & Co Ltd. announced a new contract to sell its traditional sweets in Japan, with the possibility of further expansion in Asia all thanks to a wedding. After supplying the firm’s Uncle Joes Mint Balls as ‘favours’ (guest gifts) for a wedding in Japan, a couple found the sweets were so popular with the Japanese that they approached William Santus with the idea of setting up a company to market them in Japan.

Since launching in March, the company has generated such strong sales that William Santus & Co now expects first year export sales to the Japanese market to reach £70,000 and has identified potential for further growth in Asia, and therefore for expansion of its UK production and staff numbers.

Around three million people work in retail, the largest private sector employer in the UK, accounting for 10.5% of total employment. The sector generated retail sales of £303 billion in 2011, equivalent to around 20% of UK GDP and consistently accounts for 5% of Gross Value Added in the UK economy. Retails purchase around £180bn worth of goods for resale, supporting £47bn of output from other sectors.

Sri Lanka

Sri Lanka is no stranger to British retail, food and drink brands. A typical morning in a Sri Lankan home might begin by brushing teeth with ‘Signal’ toothbrush and toothpaste, Lux and Sunsilk or Dove in the shower, clothes freshly laundered with Surf Excel and softened with Comfort, a cup of fresh Lipton tea, washing hands with Lifebuoy handwash before enjoying a sandwich with just that right bit of Marmite and Flora. What is interesting about this little pen picture is that all these brands belong to just one British company – Unilever!

Unilever Sri Lanka was incorporated in 1938. Today, it is home to 29 strong brands in categories including household care, fabric cleaning, skin cleansing, skin care, oral care, hair care, tea, spreads, personal grooming, water purifying and household care products. The company is a compelling example of a successful British business operating in Sri Lanka.

It is interesting to note that 95% of the products marketed by Unilever in Sri Lanka are manufactured locally. In 2012, Unilever set-up a new state-of-the-art manufacturing facility and further cemented its 75-year manufacturing history in Sri Lanka. This factory is one of Unilever’s largest investments in Sri Lanka.

How many more Sri Lankan lifestyle choices include a British brand? While fragrances such as Paul Smith, Stella McCartney or Yardley London to Clarks shoes appeal to a niche market in Sri Lanka, there are many other brands like those marketed by Unilever with a wider acceptance and usage. Brands such as Dettol, Airwick, Harpic, Mortein, Strepsils, Disprin, Panadol, Horlicks, Sensodyne, Brand’s Essence of Chicken, are just a few other examples of British retail, food and drink which are basic part of the lives of most Sri Lankans across the country.