Research and Markets: The UK Tea Council Stated That It Expects Consumption of Tea to Grow By Around 3% In 2009 Read More inside the Q4 2009 United Kingdom Food and Drink Report

DUBLIN--(Business Wire)--
Research and Markets
(http://www.researchandmarkets.com/research/166538/united_kingdom_foo) has
announced the addition of the "United Kingdom Food and Drink Report Q4 2009"
report to their offering.

The United Kingdom Food and Drink Report provides industry professionals and
strategists, corporate analysts, food and drink associations, government
departments and regulatory bodies with independent forecasts and competitive
intelligence on the United Kingdom's food and drink industry.

In mid June 2009, new figures published by the Food and Drink Federation (FDF)
suggest that UK food and drink exports are increasing at a tremendous rate. The
FDF reported that in 2008 exports of food and non-alcoholic drinks increased by
20% in value terms to reach a record GBP9.23bn (US$15.2bn). Indeed, a 20% rise
in 2008 far exceeds the recent trend, with growth averaging around 8% between
2001 and 2006. This surge can be partly attributed to the massive devaluation of
sterling over the last year, which has made UK exports more competitive in
foreign markets and also increased the sterling value of existing contracts.

The UK economy is highly reliant on the service industry and has a fairly small
manufacturing base to benefit from the recent devaluations. The country's large
and diversified food and drink sector is one exception to this rule and rising
exports should help boost economic growth at a time when other industries are
struggling. However, it remains to be seen whether this growth can be maintained
in 2009, with consumer spending on the wane across Europe and sterling beginning
to strengthen. In other encouraging news for the quarter, the UK Tea Council
stated that it expects consumption of tea to grow by around 3% in 2009. This
would buck the trend of the last 40 years, which has seen sales fall as
consumers switch to alternative beverages including coffee and soft drinks.
Rising demand is attributed to the product's health benefits.

However, in the food sector, UK dairy co-operative Dairy Farmers of Britain
(DBF) went into receivership in early June after waning consumer demand and its
competitors' superior ability to discount exacerbated existing underlying
problems. Its demise is likely to represent an opportunity for the rest of the
UK's dairy producers and two of the firm's assets have already been snapped up
by competitors. However, whether the failure of such an important industry
player, which supplies 10% of the UK's liquid milk, is indicative of an industry
in decline or can be merely traced to a series of poor management decisions
merits discussion.

In the end DBF was unable to compete on price with larger (and technologically
superior) rivals and struggled to maintain its contracts with the retail sector.
These parts of the dairy sector are likely to continue to come under pressure
going forward. Already over 50% of cheese sold in the UK is imported and with
producers in lower cost markets, such as Brazil, able to produce bulk standard
cheese more cheaply, the lower end of the market is likely to experience further
consolidation as European import restrictions are gradually phased out.

However, the largest UK dairy firms, including Robert Wiseman, Dairy Crest and
Arla Foods, have already responded to these changes and now represent more
formidable competitors than they did a few years ago. Controlling a portfolio of
strong brands and with advanced processing facilities, they are in a fairly
strong position to respond and take advantage of the opening of the world's
dairy markets.

Key Topics Covered:

* Executive Summary
* SWOT Analysis
* Business Environment
* Food
* Drink
* Market Overview
* Competitive Landscape
* Appendix

Companies Mentioned:

* Associated British Foods
* Dairy Crest Group Plc
* Cadbury Plc
* Drink
* Diageo
* Tesco
* J Sainsbury Plc
* Asda

For more information visit
http://www.researchandmarkets.com/research/166538/united_kingdom_foo

Research and Markets
Laura Wood, Senior Manager,
press@researchandmarkets.com
U.S. Fax: 646-607-1907
Fax (outside U.S.): +353-1-481-1716

Copyright Business Wire 2009