Food for Thought with Atticus Partners

January 2025

Welcome to the first 2025 edition of the Atticus Partners food and drink newsletter: Food for Thought. These bulletins bring you updates on what Atticus is doing within the food and drink space including blogs, our #AskAtticus speaker series and events we have attended, as well as key news and political updates of relevance to the sector.??

From plant-based innovations and sustainability revolutions to rising costs and stricter regulations, this newsletter we project a 2025 that promises a deliciously complex recipe for the UK food industry—where adaptability and forward-thinking will be the secret ingredients for success!

For more information about Atticus’s work in the food and drink sector, or if you have any questions about how we can help you navigate our fast-changing political landscape, please get in touch via [email protected].??

Roundup for the year ahead?

The UK food industry will continue to find itself navigating a web of consumer demands, regulatory adjustments, and economic challenges in 2025. Health-conscious consumers are shaping the market with an increasing preference for natural, minimally processed foods. Plant-based products, natural ingredients innovations, and functional foods infused with probiotics and fibre will continue to show up in shopping baskets, reflecting a profound shift in dietary priorities. Even frozen and canned products, long perceived as less appealing, are enjoying renewed favour as they cater to the dual demand for convenience and nutrition. Here, Atticus details the focal policy points we’re watching out for in 2025.?

Sustainability has evolved from a buzzword into an imperative, fuelling the regenerative movement moving into 2025. Consumers and government increasingly demand that businesses adopt environmentally conscious practices across sourcing, production, and packaging. Beyond meeting consumer expectations, companies face mounting regulatory requirements to reduce their environmental footprint. Companies embracing these practices not only align with public sentiment but also position themselves to meet future regulatory benchmarks set by Labour’s focus on food security.?

Economic pressures also loom large over the sector in the new year. Recent proposals in the Autumn Budget, such as the increased National Insurance contributions and a higher National Living Wage, are significantly impacting production costs – Sainsburys estimate their increased costs of NIC alone will be ￡140 million. Manufacturers and retailers are grappling with how to absorb or offset these expenses without alienating cost-sensitive consumers. For policymakers, the challenge lies in crafting strategies that stimulate growth while safeguarding the public from untenable food costs.?

In addition to rising costs, regulatory shifts continue to ripple through the food and beverage sector. New import requirements and packaging standards are adding layers of complexity to compliance efforts. In September, the Labour Government also made good on a pre-election pledge to ban TV advertising of so-called junk food in the UK before the 9pm watershed. With public health at the forefront of Labour’s approach to the industry, 2025 will walk a tight line between ensuring regulations support growth and safeguarding public interests.?

Innovations like lab-grown meat, AI-driven recipe development, blockchain transparency and personalised nutrition will be transforming the food landscape. Businesses are diversifying product lines, investing in technologies that enhance supply chain efficiency, and collaborating with Government bodies to foster a supportive environment for growth. This proactive approach is essential for navigating the complexities of today’s market, enabling resilience in the face of multifaceted challenges.?

In this dynamic environment, the UK food industry must balance adaptability with a long-term vision. Success depends on embracing innovation, engaging constructively with policymakers, and maintaining a sharp focus on consumer needs and expectations. By doing so, the industry can weather the current challenges and position itself for sustainable growth in the years ahead.?

if you’re interested in how any this could impact you and your business, please get in touch at [email protected]?

Atticus Out and About

There’s a busy month ahead, with a lot of events taking place as we start the new year.? Several of our team members will be attending the Food and Drinks Federation’s Sustainability Networking Breakfast, aimed at embedding and driving sustainability initiatives. The breakfast, happening on the 12th of February, will look at fostering a culture of sustainability across the sector.?

To learn more, contact us on [email protected]??

What We've?Been?Reading

‘Department for Environment, Food and Rural Affairs: Government announces reforms to boost profits for farmers with a cast iron commitment to food production’?

The Government announced plans at the beginning of January to optimise food production whilst protecting farmers. According to the Environment, Food, and Rural Affairs Secretary Seve Reed OBE, this will focus on using state purchasing power to buy British food, and introduce reforms to aid the building of infrastructure on farms.??

Could this be the future of farming? Inside Europe’s biggest vertical farm?

Recent reviews of Europe’s largest indoor, vertical fam in Norwich have questioned whether there could be a farming revolution on the horizon. The use of vertical infrastructure facilitates a precisely controlled farming environment, making for more efficient and eco-friendly food production. According to Tristen Fischer of Fischer Farms, the expansion of vertical farming into other food groups could permanently change the agricultural world.??

UK junk food ad ban includes porridge and pitta bread snacks?

A government ban of pre-watershed ultra-processed foods (UPFs) advertisements has come as a result of an increasing awareness of links between ‘junk foods’ and illnesses including cancer, heart diseases, obesity, and depression. To be included in the ban, products must meet a criteria which assesses energy, saturated fats, sugar, and sodium levels against nutritional value. The legislation is due to come into force in October of this year.??

Shares of alcohol makers fall after US official calls for cancer warnings?

Health experts in the UK and the US are calling for changes in the marketing of alcoholic drinks to highlight the health risks associated with alcohol consumption. This comes after Vivek Murthy, the US Surgeon-General, has suggested a causal relationship between alcohol consumption and at least seven different types of cancer. This follows the World Health Organisation’s 2022 warning that no amount of alcohol consumption was riskless.??

Britain bans import of fresh bratwurst (and cattle and pigs) from Germany to stop foot and mouth outbreak?

Amid fears regarding the outbreak of Foot and Mouth disease, cattle and pig products from Germany will no longer be granted GB health certificates. This includes livestock and meat produce. The UK Chief Veterinary Officer Dr Christine Middlemiss commented: “We have robust contingency plans in place to manage the risk of this disease to protect farmers and Britain’s food security, which means using all measures to limit the risk incursion and spread of this devastating disease.”?

For more information about Atticus’s work in the food and drink sector, or if you have any questions about how we can support you, please get in touch via [email protected].