It appears that overseas investment into the UK Food and Drink industry has hit a three-year high, according to research conducted by leading business and financial adviser Grant Thornton UK LLP. The results have shown a continued increase once again, but this time the increase has been significant in the sense that 2016 is the highest recorded figures for three years.
The ‘Bitesize Report’ released by Grant Thornton found that a third of deals were from overseas investors last year, whereas in 2014 and 2015 it was 20% and 28% respectively. The amount of Asian investment into the UK was high once again in 2016, with 19% of all overseas investment coming from Asia.
Trefor Griffith, the Head of Food and Beverage at Grant Thornton UK LLP, has commented, “2016 has been a solid year for M&A activity in the food and beverage sector. Despite seeing a fall in both the number and the total disclosed value of deals compared to last year, 2016 is still the second busiest year in terms of activity that we have seen since 2007.
“Given the level of uncertainty in the market this year amidst the EU referendum, which appears to have prompted the slight dip in transactions in the second quarter, this strong result once again displays the robust nature of the sector.”
Griffith also noted that the fall in value of the sterling has presented opportunities for UK food and drink manufacturers, because the price of UK goods is now much more competitive and attractive to many overseas investors. So whether or not this could be a sign of positivity coming from the result of the EU Referendum, we shall have to wait and see.
One thing you can be sure of is more uncertainty, but if studies such as this are displaying positive results, maybe the future is not so dull!
