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Welsh Food and Drink Producers are Innovative and Resilient
Welsh Food and Drink Producers are Innovative and Resilient

Business News Wales

time31-07-2025

  • Business
  • Business News Wales

Welsh Food and Drink Producers are Innovative and Resilient

Over the past few years, the Welsh food and drink sector has undergone a remarkable transformation. From Brexit and the cost-of-living crisis to the aftershocks of the pandemic, businesses across the industry have had to navigate economic uncertainty, supply chain volatility and changing consumer behaviour. Despite these pressures, the sector has not only proven resilient but continues to thrive. According to Welsh Government figures, the industry grew by 10% in 2023, reaching a total turnover of £24.6 billion and employing 228,500 people, equivalent to 17% of Wales's total workforce. While inflation and interest rates are still influencing consumer habits, and producers continue to balance cost and value, the foundations are strong. With cautious optimism, the Welsh food and drink sector is poised for measured growth over the next few years. Celebrating Excellence at the 2025 Wales Food and Drink Awards The 2025 Wales Food and Drink Awards, held recently in Llandudno, were a true celebration of the sector's strength, innovation and dedication. With over 400 guests in attendance and almost 200 entries across 16 categories, the awards offered a dynamic snapshot of the sector's breadth and excellence. Hugh James was proud to sponsor the Food Producer of the Year Award, and I was delighted to present this year's honour to Wainwright's Bee Farm. Based in Ceredigion, Wainwright's has set a benchmark for sustainable honey production and ethical beekeeping. Judges praised the team for their deep-rooted passion and environmentally conscious approach, calling the win a well-deserved recognition in a fiercely competitive category. Special mention must also go to Robin Jones, Managing Director of Village Bakery, who received the Outstanding Contribution Award. A third-generation baker from Wrexham, Robin has played a pivotal role in building one of Wales's largest craft bakeries. Under his leadership, Village Bakery has expanded from a local family business into a global exporter and major employer, all while championing skills development and sustainability. Other 2025 winners included: Apprentice of the Year – Nicola Culkin (Coleg Cambria/Knolton Farmhouse Cheese) Artisan Business of the Year – Atlantic Edge Oysters Business Resilience Award – Cradoc's Savoury Biscuits Drinks Producer of the Year (5+ employees) – Penderyn Entrepreneur of the Year – Lord Robert Newborough (Rhug Estates) Exporter of the Year – South Caernarfon Creameries Farm to Fork Producer of the Year – Puffin Produce Innovation Award – Evan Evans Brewery Local Community Award – The Wrexham Lager Beer Co Rising Star of the Year – Tom Wickens (Plumstone Welshcakes) Scale-up Company of the Year – Pembrokeshire Creamery Small Drinks Producer of the Year (<5 employees) – Llanfairpwll Distillery Start-up of the Year – Porthcawl Distillery Sustainable Values Award – Rhug Estates Wales Food and Drink Champion – Blas ar Fwyd Awards like these matter. They give producers a platform for recognition, foster collaboration across the industry, and raise public awareness of Wales's world-class food and drink. For many businesses, this visibility can open doors to new partnerships, export opportunities and investment. Looking Ahead: Opportunities and Challenges The outlook for the Welsh food and drink sector is bright, but not without its challenges. Economic conditions remain mixed, with consumer spending still under pressure. Yet the fundamentals are strong. For example, export growth will be essential over the next few years. Wales produces far more food and drink than it consumes, so developing new international markets is key. While post-Brexit and regulatory hurdles remain, initiatives like the Export Cluster programme and new trade deals are opening new opportunities, especially in the Middle East, Asia and North America. Businesses that plan strategically and embrace compliance are likely to benefit most. Sustainability will also remain a defining trend. The Welsh Government is backing this shift with initiatives that support carbon reduction and environmental innovation. From renewable energy to plastic-free packaging, producers are already taking big steps, and consumers are rewarding those efforts. Innovation continues to thrive, both in product development and in process improvement. Health-conscious and sustainability-driven products are in demand, and Welsh producers are responding with new plant-based lines, functional foods, and 'free-from' ranges. Meanwhile, investments in automation and digitisation are helping businesses become more resilient and efficient. As consumer behaviour continues to shift toward authenticity, transparency, and ethical sourcing, Welsh producers are well placed to lead. Local provenance, rich storytelling, and a focus on quality remain powerful selling points, and Wales's food and drink brands are rich in all three. Finally, government support remains strong. With grant funding, trade missions, and training schemes all on the table, the next 12–36 months offer real opportunities for those ready to innovate and grow. Support initiatives such as the Food & Drink Wales Industry Board and the Export Action Plan for the Food and Drink Industry are central to guiding businesses through growth, internationalisation and innovation. Hugh James's support for the sector At Hugh James, we are proud to support the food and drink sector as it evolves and grows. Our sector-specialist team work with clients across the supply chain, from artisan producers to national brands, to provide strategic legal advice that enables growth, resilience and innovation. We have supported several key recent deals that reflect the sector's strength and momentum. These include: the refinancing of TGI Fridays, which helped safeguard 2,400 jobs across more than 80 UK sites; supporting Glamorgan Brewing Company, one of Wales's oldest and most respected independent breweries, in securing a major distribution partnership with LWC Drinks. This deal marked a significant moment for the Welsh drinks sector, enhancing market reach for a flagship Welsh brand and helping to sustain a proud brewing heritage. As consumer demand for local, craft beverages continues to rise, this kind of strategic collaboration demonstrates the strength and potential of Welsh producers; and advising Development Bank of Wales on its investment in Coffi Lab to support the brand's ambitious growth plans across the UK. These aren't just business transactions; they are long-term, strategic moves that protect jobs, heritage and community. The 2025 Awards were a powerful reminder of everything that makes the Welsh food and drink sector so exceptional: passion, innovation, resilience and a deep sense of place. At Hugh James, we look forward to continuing our support for the businesses that feed the nation and fly the flag for Wales around the world.

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