Food and drink independents leading on growth

Independently-owned firms show promising revenue uptick but sector as a whole remains fragile

Independent food and drink producers are quietly outperforming their much larger counterparts.

Data from Scotsman Insider’s Food and Drink 100, updated with latest available accounts from Companies House, showed that independents are ahead in turnover growth.

Standalone companies with no parent company at all posted median turnover growth exceeding those owned by multinationals, private equity or even UK family holding structures.

Median growth for Scottish owned independents was 2.57 per cent compared to -5.61 per cent for those with a UK parent - 0.13 for overseas-owned and -6.62% for private equity owned and -5.9% for PLCs.

This trend is shown in meat and bakery, just 6.8 per cent of the ranking’s combined turnover of £15.9bn but home to some of this year's sharpest growth stories.

Nairn's Oatcakes, independently run three decades on from its management buyout from United Biscuits, grew turnover 6.6 per cent to £50.6m, even as PE-backed category leader Lightbody of Hamilton fell 6.9 per cent.

As managing director Colin Dingwall says in this magazine: "We have no external funding and remain independently owned. This independence allows us to map out a long-term strategy for the business".

Simon Howie Butchers, marking its 40th anniversary as a family firm, grew 27.2 per cent to £37.4m while processor J.W. Galloway's turnover fell by 44.3 per cent.

Alcoholic beverage firms continue to dominate the list with spirits, beer and drinks accounting for £7.89bn of the combined turnover which is 49.7 per cent of the total.

Fifty of the hundred grew turnover in their latest accounts, forty-four declined.

The near-even split driven by rising input costs, labour rates and geopolitical uncertainty squeezing margins across the board.