UK bakery Bells of Lazonby has strengthened its position in foodservice with the launch of individually wrapped free-from We Love Cake slices through distributor Central Foods. The new ‘single serve’ range is designed specifically for the out-of-home sector, responding to growing operator demand for convenient, pre-portioned desserts that balance inclusivity with operational efficiency. Available in Chocolate Orange and Raspberry Ripple, the slices are gluten, wheat and milk-free, aligning with the continued rise in free-from and allergen-aware menu development. Produced by the family-run Cumbrian bakery, which celebrates its 80th anniversary this year, the products are manufactured in a dedicated free-from facility. The individually wrapped format supports grab-and-go and impulse purchases, making it particularly suited to high-footfall environments such as cafés, pubs, garden centres and contract catering settings. For operators, the ready-to-serve format eliminates preparation requirements, helping to reduce labour pressures while also minimising food waste through controlled portioning. The launch also enables Central Foods’ broad customer base to easily incorporate a compliant free-from dessert option without adding complexity to menus. The move represents a strategic step for the We Love Cake brand as it continues to expand its foodservice footprint. By leveraging Central Foods’ nationwide distribution network, Bells of Lazonby aims to increase accessibility and visibility of its free-from offering across multiple channels. Josh Boydell-Smith, head of marketing at Bells of Lazonby, said: “Launching the single serve into Central Foods is a significant step in strengthening our presence across UK foodservice. We’re seeing clear demand from operators for products that are both commercially efficient and inclusive, and these single-serve slices have been designed to deliver on both." We Love Cake is the dedicated free-from brand from Bells of Lazonby, supplying both retail and foodservice sectors across the UK. The new single-serve slices are now available via Central Foods for wholesale and foodservice operators.

Agricultural biotech firm Tropic Biosciences has secured regulatory approval for its non-browning banana in both Japan and Brazil, marking a significant milestone for the global fresh produce and foodservice sectors. Backed by London-listed investor Agronomics, the innovation is positioned to reshape banana supply chains by reducing waste, extending usability and unlocking new commercial formats. The newly approved variety maintains its colour and freshness long after peeling and slicing. Approval in Japan signals strong regulatory confidence; Brazil’s approval is significant, as it is one of the largest banana producers and consumers. With Brazilian output accounting for around 10% of global production, the ability to cultivate the variety domestically opens the door to widespread adoption and supply chain integration. Food waste remains a critical issue across the fruit category, especially with bananas, which are highly perishable once cut. Tropic’s innovation directly addresses this challenge by extending usability at multiple points along the value chain. The company estimates that its broader banana portfolio, including an extended shelf-life variety, can reduce transportation waste by up to 50% while enabling new export routes through longer life. The approvals in Japan and Brazil bring Tropic’s regulatory footprint to 11 countries, including major markets such as the US, Canada and the Philippines. Collectively, these regions represent more than 70% of global banana production and over 30% of consumption. The milestone follows a strong year for Tropic, including a 105 million Series C funding round and the commercial launch of its banana varieties, the first new banana offerings in more than 75 years. Looking ahead, Tropic plans to launch a Panama Disease-resistant banana by 2027, which could prove critical in safeguarding a global industry valued at approximately $25 billion.

Glebe Farm Foods has invested in a new on-site paper packaging machine, marking a positive step in its long-term ambition to explore more sustainable packaging options. The gluten-free oat-based F&B manufacturer received partial funding for the machine from the Huntingdonshire District Council's Rural England Prosperity Fund (REPF). The REPF was a grant scheme for small rural businesses and community projects, supporting investment in equipment, buildings and facilities to help strengthen the local economy. Glebe Farm Foods has now activated the new machine, with the company’s flagship PureOaty porridge oats being the first to undergo a paper packaging trial. The product is now available in responsibly sourced, recyclable paper bags as well as the original packaging. The paper packaging is 100% recyclable and clearly signposted as so on-pack, encouraging consumers to dispose of responsibly with ease. Glebe Farm said the move reflects both evolving consumer expectations and the company’s ongoing commitment to more sustainable packaging production. The company grows and mills its own oats or sources from farmers within a 70-mile radius, and packages everything on-site to ensure each product can be traced from field to shelf. With paper packaging now part of the on-site operations, the company said it could offer this capability to other brands looking to transition to more sustainable formats, without the need to invest in their own machinery. This investment is among several sustainability initiatives underway at the company’s production site. The company’s entire manufacturing process is powered by renewable energy, including the introduction of three biomass boilers fuelled by byproducts from oat milling. Solar capacity has also been expanded with an additional 467kw of roof-mounted panels installed. Philip Rayner, MD and co-founder of Glebe Farm Foods, said: “We're always looking for ways to be more sustainable as a food and drink manufacturer, and moving to paper packaging is an important step for us”. “Today's shoppers are making more conscious choices, actively seeking out recyclable packaging and moving away from brands that rely on unnecessary plastic – a move which we are delighted to see. But we truly believe new paper packaging isn't just good for business; it's the right thing to do for our customers and the planet.”

The PepsiCo Foundation is scaling up its regenerative agriculture efforts in southern Spain with the second edition of its VivaOliva programme, targeting deeper impact across the olive oil supply chain in Jaén, a region widely regarded as the world’s leading olive oil producer. The 2026 iteration of VivaOliva will support 200 farmers from the SCA Bedmarense cooperative, building on a successful pilot that engaged more than 150 producers last year. The initiative combines sustainability goals with economic inclusion, aiming to modernise olive farming while encouraging generational renewal in rural communities. At its core, VivaOliva focuses on accelerating the adoption of regenerative agriculture techniques, an area of growing importance for food and beverage companies seeking to decarbonise supply chains and improve raw material resilience. Participating farmers will receive hands-on training in soil regeneration, water conservation and biodiversity enhancement. The programme includes three in-field training sessions throughout the year, alongside workshops and tailored technical support delivered in partnership with Earthworm Foundation, The Sustainable Smallholder and The Regen Academy. Key practices being promoted include the use of organic fertilisers, improved drip irrigation systems, and the planting of cover crops, measures designed to restore soil health while improving long-term yields. The programme has direct implications for the food and beverage sector, particularly through its link to Alvalle, PepsiCo’s leading chilled gazpacho brand in Spain. A portion of the extra virgin olive oil used in Alvalle products is sourced from Jaén, making the region a strategically important node in PepsiCo’s European supply chain. By investing in regenerative practices at farm level, the company aims to secure more sustainable and resilient ingredient sourcing while supporting rural livelihoods. The initiative aligns with PepsiCo’s broader PepsiCo Positive (pep+) framework, which embeds environmental and social targets into business growth. Beyond environmental outcomes, VivaOliva places a strong emphasis on attracting new entrants to agriculture. Around 35 new farmers will join this year’s cohort, with dedicated training and support designed to lower barriers to entry and encourage entrepreneurship in the sector. Returning participants from the first edition will progress to more advanced techniques, including precision water management, pruning optimisation, composting, and organic crop treatments, helping to professionalise operations and drive measurable improvements in farm performance.

Nestlé has announced plans to restructure parts of its French operations, with proposals that could result in the reduction of up to 180 positions across support functions and research and development activities. The company said the plans also come amid challenging market conditions for the agri-food sector, including pressure on consumer purchasing power, rising production costs and intensifying competition. The proposed changes form part of the wider group strategy unveiled in October 2025 by new CEO Philip Navratil, aimed at simplifying and digitising operations, improving agility and efficiency, and adapting structures to reflect changes in the company’s business portfolio. Nestlé said the measures are intended to strengthen competitiveness while supporting future investment. In France, the company plans to make greater use of group shared services and streamline its structure, including at its R&D centres in Tours and Lisieux. Nestlé said the actual impact on employees could be reduced to between 75 and 100 roles once vacant positions, newly created jobs and voluntary internal transfers are taken into account. The company added that it aims to limit compulsory redundancies by prioritising redeployment opportunities, voluntary departure schemes and early retirement options. The proposals will be presented as part of Employment Protection Plans and are now entering an information and consultation phase with employee representatives. If approved, implementation would begin progressively from 2027. Last year, Nestlé announced that it was set to reduce its workforce by 16,000 positions globally, representing approximately 6% of its global staff, as the company targets CHF 3 billion (approx. $3.7 billion) in cost savings by the end of 2027.

Capri Sun is expanding beyond its traditional juice pouch offering with the launch of Capri Sun Hydrate, a new electrolyte juice drink designed specifically for children, marking a significant move into the fast-growing functional hydration category. Backed by The Kraft Heinz Company, the rollout positions Capri Sun among the first major brands to tailor a sports-style hydration drink exclusively for kids, addressing rising parental demand for lower-sugar, “clean label” beverage options. Capri Sun Hydrate combines electrolytes with Vitamin E and contains 50% less sugar than leading regular sports drinks, according to the company. The product is also free from artificial flavours, colours, and preservatives, attributes increasingly sought by health-conscious families. Launching in three flavours, Fruit Punch, Tropical Punch, and Lemon Lime, the range is designed for a wide range of occasions, from organised sports to everyday outdoor activity, aligning with broader lifestyle positioning rather than just performance hydration. The introduction reflects a clear gap in the category: while hydration drinks have surged in popularity, most are formulated for adults. Parents often face a trade-off between high sugar content, artificial ingredients or flavours that don’t appeal to children. Capri Sun Hydrate aims to bridge that divide by combining functionality with kid-friendly taste, a balance that could unlock incremental growth in the children’s beverage segment. Industry data cited by the company indicates that 94% of Capri Sun households already purchase sports drinks, highlighting strong cross-category potential. At the same time, hydration remains one of the fastest-growing segments in beverages, creating a favourable backdrop for innovation. Kristina Hannant, director, ready to drink marketing, said: "Today’s parents are looking for beverage options that keep up with their kids’ active lifestyles, without the sugar and extra ingredients they don’t feel good about serving. With Capri Sun Hydrate, we saw an opportunity to bring something brand new to the kids beverage aisle – a beverage made specifically for kids that delivers the fun and flavour kids love with the functional benefits parents are looking for.” The launch builds on Capri Sun’s recent format innovations, including multi-serve packs and single-serve bottles, which have helped the brand expand into convenience and on-the-go channels. Capri Sun Hydrate is rolling out nationwide across major retailers including Walmart, Target, and Amazon, positioning the product for wide accessibility ahead of the peak summer season.

Vitafoods Europe (5-7 May 2026) – the leading global platform for the nutraceutical, functional food and beverage, and dietary supplement industries – has unveiled the agenda for its largest and most forward-looking edition yet. The 2026 programme is designed to help brands respond to some of the most disruptive forces shaping the nutraceuticals landscape, with full day sessions dedicated to the explosive impact of GLP-1 medications on nutrition strategies and the rapidly rising beauty-from-within market.   These spotlight sessions will take place on day three of the show, running alongside an extensive programme of more than 37 hours of content across multiple stages, including the Vitafoods Insights Theatre and the Vitafoods Europe Conference. With over 100 expert speakers from across the nutraceutical sector, the programme offers unmatched insight into emerging trends, product innovation and the future of nutrition. Speaker highlights include scientific co-founder of Zoe and professor of genetic epidemiology at King’s College London, Tim Spector, as well as representatives from Mintel, FMCG Gurus and Innova Market Insights, among other specialists in trends and innovation.   The GLP-1 era: Turning disruption into opportunity With more than 150 new GLP-1 drug candidates currently in development, products making GLP‑1‑related claims have grown at an estimated 124% CAGR over the past five years, meaning the weight management sector is set for a transformative shift. In response, demand is growing for targeted nutritional solutions that support users throughout the GLP-1 journey, including for muscle maintenance, metabolic health and overall wellbeing.   To help brands navigate this evolving landscape, Vitafoods Europe 2026 will host a dedicated spotlight on weight management on 7 May. Sessions will include discussions on the need to shift from focusing on calorie restriction to holistic, evidence-based approaches; the potential of plant-based proteins for metabolic support; and emerging supplement-based alternatives to GLP-1 medications – offering insights into how the nutraceutical sector can deliver effective tailored results for consumers. Key sessions will include Sophia Cornelius, specialised nutrition analyst at Mintel, on 'The future of weight management: Nutrition innovation in a GLP-1 era' and a panel discussion on complementary supplements for GLP-1s, featuring Lauren Struszczak, senior scientist at the British Nutrition Foundation.   Beauty-from-within: The next nutrition boom The rapidly accelerating beauty-from-within movement is positioning nutricosmetics as one of the most exciting frontiers in the global nutrition industry, with the market projected to grow from around $8.3 billion in 2026 to nearly $16 billion by 2034. As consumers increasingly link appearance with overall wellbeing, innovation is expanding beyond traditional supplements into functional foods, beauty drinks and longevity-focused nutrition.   Vitafoods Europe’s dedicated nutricosmetics spotlight will bring experts together to explore the science and innovation shaping the future of ingestible beauty. Sessions will explore the convergence of beauty, nutrition and pharma innovation, examining evidence for emerging ingredients – including peptides, antioxidants and marine compounds – and highlight the preventative 'beauty-from-within' strategies resonating with younger consumers. Attendees will take a deep dive into the rapidly expanding nutricosmetics market and its global impact, with a highlight session from Mike Hughes, head of research and insight at FMCG Gurus on the market opportunities for nutricosmetics.   More to learn across the show floor Alongside the new spotlight sessions, Vitafoods Europe 2026 will see the return of key learning platforms. The Vitafoods Insights Theatre features presentations covering market updates and major consumer trends influencing the global nutraceutical market, with Innova Market Insights highlighting its top ten trends for 2026 (5 May) to open the stage. Another key highlight will be the Startup Challenge live pitches and awards (5 May), which will showcase breakthrough ideas from rising innovators. Meanwhile the Vitafoods Europe Conference serves as the central hub for cutting-edge science, with a carefully curated programme designed to inspire and equip professionals in R&D, product development, innovation and strategy roles. These content features will join the Nutraceutical Showcase Theatre, which was introduced last year to feature voices from across the entire nutraceutical supply chain, from contract manufacturers to finished products and beyond.   Networking and knowledge Also returning in 2026 are networking sessions created to facilitate industry dialogue, including the return of the Future of Nutrition Lunch & Learn. This year’s session will bring together industry experts to explore how biohacking and longevity science are shaping the next generation of nutraceutical innovation. Newly announced for this year, professor Tim Spector will appear as keynote speaker, with further details of his talk to be announced soon.   The Women’s Networking Breakfast also returns for 2026, featuring a panel discussion exploring how women’s health is shaping resilience, product development and business success across the industry. This fan-favourite session aims to create space for women to network and build meaningful relationships that last beyond the show floor, with interactive discussions focused on personal and professional growth.   Speaking on the 2026 agenda, Gareth Baguley, brand director of Vitafoods Europe at Informa Markets, said: “We are in what is perhaps the most dynamic period of nutraceutical innovation in recent history. Advances in science and technology are rapidly reshaping what is possible and raising expectations around how nutrition can support health." "As a result, we are seeing a fundamental shift towards solutions that support health in more personalised, preventative and holistic ways. The Vitafoods Europe 2026 programme is designed to bring these shifts into sharp focus, enabling the global nutrition community to explore the ideas, research and collaborations that will define the next chapter of nutraceuticals.”   To explore the full agenda, click here. Registration for Vitafoods Europe 2026 is now open. Don’t miss out by securing your pass today.

With the surge in use of GLP-1 receptor agonists for weight management, the F&B industry has seen a clear shift that goes beyond those using the medications – the focus is turning toward food quality over quantity, and new approaches to gut health and carbs are under the spotlight. Francesca Berry, head of content programming at Vitafoods Europe, explores these evolving priorities in this exclusive piece. Francesca Berry The rise of GLP-1 medications has been one of the most talked-about developments in the food and nutrition space in recent years. Adoption of these therapies has been rapidly accelerating across Europe, with approximately 1.6 million users in Great Britain alone. The impact of this extends well beyond the weight management market, changing the way consumers and brands think about nutrition on the whole. In particular, as appetite suppression leads many consumers to eat less, how do we ensure that people are still properly nourished along their weight loss journeys? This is a theme that has become increasingly clear in my conversations with experts across gut health, sports nutrition and weight management in my role at Vitafoods Europe. The shared conclusion is that sustainable weight loss requires more than just eating less – it requires supporting the body's underlying metabolic systems. Two areas in particular are gaining attention: the role of the gut microbiome in maintaining health during reduced food intake, and a re-evaluation of nutrients that have historically been misunderstood or oversimplified. Together, these ideas point toward a broader shift in how our industry – and consumers – thinks about weight management, one rooted in resilience rather than restriction. Why gut health matters more when people eat less The gut microbiome is increasingly understood as a foundation for whole-body wellness, with established links to health areas including metabolism, immune function and energy regulation. Particularly relevant in the context of growing GLP-1 usage, is the gut microbiome’s central role in nutrient absorption. Bacteria in the gut contribute to metabolic functions essential for human digestion, shaping how macronutrients like carbohydrates, proteins and lipids are harvested from food and metabolised. The microbiome also influences how effectively the body absorbs minerals and other micronutrients, especially when diet is imperfect. When consumers are eating less as a result of appetite suppression, a well-functioning gut ecosystem is essential to help them get the most nutritional value from smaller portions. There is also a practical dimension to gut health support in these consumers. GLP-1 medications are commonly associated with gastrointestinal side effects including nausea and constipation, making gut comfort a real concern for many users. What’s more, the microbiome is mechanistically connected to GLP-1 pathways themselves. Some species of beneficial bacteria produce metabolites that are linked to the body's own natural GLP-1 signalling and secretion. Product developers in the food and nutrition space can harness this connection with products that offer functional gut support to help make GLP-1 journeys more manageable, healthy and rooted in long-term health. Innovation is already underway. Probiotic company Pendulum, for example, has launched a multi-strain blend in the UK designed to support gut health, GLP-1 production, appetite regulation and metabolic health. Consumer appetite for these solutions is growing, reflected both in rising product innovation and shifting expectations. This is a clear area of focus – with insights from Mintel highlighting increasing digestive health claims in new product development and strong consumer recognition of the microbiome’s role in overall health. Their data also shows a rise in European vitamin and supplement launches with digestive health claims, while at least 60% of consumers across key markets recognise the gut microbiome’s role in wider health. This signals a clear shift from niche interest to mainstream expectation. Rethinking carbohydrates: Metabolic flexibility beyond the gym If GLP-1 therapies are changing how much people eat, the next question is what they eat – and how their bodies use it. In this context, traditional narratives around certain nutrients should be re-examined to give way to a more nuanced understanding of their contribution to metabolic function. For years, carbohydrate restriction has dominated weight management messaging. But recent nutrition science is telling a more nuanced story, with significant implications for how the industry formulates products for consumers managing their weight. The concept at the centre of this shift is metabolic flexibility: the body's ability to efficiently switch between fuel sources depending on what is available and what is needed. Speaking with experts like Susan Kleiner of High Performance Nutrition, who will be presenting at the Vitafoods Europe Conference Theatre, underscores how these well-established sports science principles can also be applied to weight management. In sports science, advances in understanding muscle glycogen, blood glucose and fatigue have driven a return to more targeted carbohydrate strategies for athletes. These insights can also guide product formulation and dietary strategies for anyone on a restricted diet. Whether by choice or as a consequence of GLP-1-related appetite suppression, metabolic flexibility matters and strategic carbohydrate intake can play a role in supporting metabolic function. Modified starches and sugars that are digested and absorbed at varying rates, for instance, offer formulators the ability to design products that support sustained energy release with better gut tolerance – a priority not just for athletes, but for anyone experiencing the gastrointestinal sensitivity that often accompanies GLP-1 use. Low glycaemic carbohydrates, functional fibres and carefully formulated carbohydrate blends all present opportunities for products that support metabolic balance as part of sustainable weight management journeys. Supporting metabolic resilience, not just reducing calories The convergence of these themes points to a broader shift in how the nutrition industry approaches weight management. As GLP-1 adoption accelerates, the opportunity for food, beverage and supplement brands is not to compete with pharmaceutical interventions, but to complement them, supporting the body's metabolic systems so that weight loss also means sustained health and wellbeing. The direction of travel is clear: the industry must move beyond calorie-reduction thinking toward metabolic resilience, ensuring consumers have the nutritional support to thrive, not just lose weight.

UK start-up Drink Lomi has launched a range of single-serve matcha and vegan cold foam sachets, targeting growth in the premium at-home drinks segment. The Warwickshire-based company’s new line includes 2g AA-grade ceremonial matcha sachets and a 10g vegan “cloud foam” topper, designed to deliver a consistent, barista-style drink without the need for specialist equipment. Founder Harriet Lloyd said the format aims to address common challenges in the matcha category, including freshness, portion control and preparation complexity. “Matcha is premium, but often inconsistent once opened," she said. "We’ve simplified it into a single-serve format that guarantees quality every time.” The products are positioned for both retail and trade, with applications spanning home consumption, offices and hospitality settings. According to the company, the pre-portioned format can help reduce waste, extend shelf life and streamline stock management. Drink Lomi is also developing a pipeline of single-serve syrups and toppings as it looks to broaden its offering in the customisable drinks space. The brand is targeting distribution across grocery, wellness and lifestyle retail channels, following early placements in independent stores and experiential environments.

The AmericaPack Summit 2026 will take place on 22-23 June 2026 at Encore Boston Harbor in Boston, Massachusetts. This invitation only packaging event will bring together senior FMCG packaging executives and solution providers for two days of focused discussion, practical insight, and business driven engagement.   As a leading FMCG packaging conference, the summit will address the key challenges shaping the industry today, including packaging design, technology and innovation, circularity, supply chain integration, sustainability and regulatory compliance. The programme is designed to provide actionable insight that helps packaging leaders improve efficiency, align strategy with business goals and deliver products to market more effectively.   A defining feature of the AmericaPack Summit is its structured format, which includes scheduled one to one meetings between delegates and solution providers. These meetings are aligned to current business priorities, creating a setting where conversations are relevant, targeted and outcome focused.   Featured speakers and programme highlights   The 2026 programme will feature senior leaders from across the FMCG packaging landscape, sharing real world perspectives on innovation, design, and supply chain performance. Hervé Buzot, director of global packaging development at The Estée Lauder Companies, will present Creating Success by Elevating Packaging. His session will explore how packaging goes beyond functionality to influence brand perception and consumer behaviour, with a focus on combining design, craftsmanship and material innovation to drive growth and strengthen brand equity across global markets.   Sergio M Perelman, SVP of packaging for North America at Ferrero Group, will lead a session titled Factory to Front Door: Designing Packaging for the Entire Journey. This discussion will examine how packaging must perform across every stage of the supply chain, from manufacturing through to final delivery, with strategies for improving durability, optimizing efficiency and balancing sustainability with cost and performance.   Why attend   Alongside expert led sessions, the AmericaPack Summit 2026 offers a curated environment built for meaningful engagement. Through scheduled one to one meetings, peer discussions, and practical case studies, attendees will gain actionable insight into packaging innovation, operational performance and sustainable strategy.   With participation limited to maintain a focused and relevant environment, the summit provides FMCG packaging leaders with the opportunity to exchange ideas, evaluate solutions, and build valuable partnerships.   For executives seeking practical insight and real business connections, the AmericaPack Summit 2026 stands out as a key packaging industry event.   For more information or participation details, visit the official summit page here, or contact Kyriakos Xenophontos at kyriakosx@marcusevanscy.com.

Cell-cultivated food company Parima has become the first business globally to secure regulatory approval for cultivated product derived from two different animal species, following Singapore’s authorisation of its cultivated duck. Nicolas Morin-Forest, CEO of Parima, said: “The approval of our cultivated duck product marks a new chapter, not only for Parima, but for cultivated food more broadly.” The latest approval from the Singapore Food Agency builds on the company’s earlier clearance for cultivated chicken in 2025, reinforcing Singapore’s position as a leading regulatory hub for novel foods. “In a sector moving from promise to proof, repeatable regulatory success is becoming a clear marker of platform strength. By securing approvals of two species within a few months, we have demonstrated the potential scale of our platform and core technology. Our focus now is commercialisation to deliver high-quality and safe products at meaningful volumes,” Morin-Forest added. At the core of Parima’s approach is a bioproduction platform designed to overcome early bottlenecks in cultivated meat manufacturing. The company utilises high-performance cell lines grown in suspension within industrial bioreactors, eliminating the need for genetic modification or structural scaffolding materials. The system is supported by a food-grade nutrient medium engineered for stability and regulatory compatibility, with the added advantage of being adaptable across multiple species. According to the company, the platform offers a pathway to production costs below €10/kg, a key benchmark for broader market competitiveness. With regulatory validation in place, Parima is now shifting focus toward commercial scale-up. The company is targeting both premium foodservice channels and broader retail opportunities supported by its culinary brand, Gourmey. Gourmey’s cultivated duck products have already gained traction within high-end cuisine, including endorsements from Michelin-starred chefs. Parima is also building an extensive international regulatory pipeline, with seven active filings across Europe, Asia and North America. It has recently submitted what it describes as the first cultivated food application under the EU Novel Food framework and is advancing dossiers in the UK, where both its chicken and duck applications are under review.

Joshua Robinson What began as a geopolitical flashpoint between the US and Iran is quickly becoming a commercial challenge for food and drink businesses, as energy volatility and supply disruption drive up costs across the value chain. Joshua Robinson, assistant director at NFU Energy, takes a look at what is currently influencing energy prices and shares how the conflict in the Middle East is affecting food and drink business here in the UK. Since early March, the escalating conflict involving the US and Iran has rapidly evolved into a major disruption for global energy markets. What began as targeted strikes has quickly intensified into an all-out war, with retaliation across the Gulf, attacks on energy infrastructure and critically, the closure of key shipping routes. At the centre of the disruption is the Strait of Hormuz, a vital route used to transport around 20% of the world’s oil and liquified natural gas (LNG) supply. Within days of the conflict escalating, the route was effectively shut down, triggering immediate market reaction. Gas prices surged by up to 50% in some regions, while Brent crude climbed sharply, recently exceeding $120 per barrel. LNG markets were hit particularly hard. The world’s largest LNG site in Quatar suspended production early in the conflict, removing a significant portion of global supply overnight. At the same time, tankers in the region started to come under attack, pushing war-risk insurance premiums to extreme levels, creating what has become an all but formal closure of the Strait. Some operators even declared force majeure, voiding existing contracts, instead diverting oil and gas tanker shipments to the highest bidder. While shipping disruption triggered the initial price spikes, the longer-term concern is infrastructure. Attacks on shared gas fields and processing facilities across the region have raised the prospect of prolonged outages. Unlike shipping delays, LNG production cannot be reinstated quickly, with some estimates suggesting it could take months to resume output and years to fully repair damage. So, for energy markets, this means the longer the crisis goes on, the longer the road to normality. Energy impact In the UK, the impact is already being felt, with longer-term challenges still looming on the horizon. So far, we have seen wholesale energy prices rise significantly, with average costs increasing by up to 30% compared to before the start of the conflict. Although fluctuations are happening daily, the overall trend is that prices are going up, and this will likely remain the case until we see a full resolution. As a net importer of energy, the UK is particularly exposed to global supply shocks, especially in the LNG market. The current situation compounds with the fact that our national gas reserves are at historically low levels. In response to addressing the previous energy crisis that emerged in the wake of the Russia-Ukraine conflict, the EU and several other countries amended historic rules requiring gas storage facilities to be at 90% capacity by 1 November each year. This guidance was changed to allow for an extension to 1 December, alongside a rule that gave a 10% tolerance on the final storage number. In previous years, this has made the spring and summer important months to rebuild reserves ahead of winter. With intensifying global competition for energy supplies, both the cost and the ability to replenish this buffer remain constrained, as Europe and the UK risk being outbid by Asian markets that are aggressively securing available supply amid peak demand. The result is a market that is both tighter and more volatile, as competition for available resources will tighten further as winter approaches. A double cost pressure for F&B businesses For food and beverage businesses, rising wholesale prices are only part of the story. Alongside global market volatility, UK businesses are also facing a sharp increase in non-commodity costs, often referred to as standing charges or network costs. These charges, applied to energy bills to fund infrastructure upgrades and grid resilience, have risen significantly this year and are set to continue increasing. This creates a 'double whammy' effect. On one side, wholesale costs, which typically make up around 30-35% of an energy bill, are being driven higher by global conflict and supply disruption. On the other hand, non-commodity charges making up the remainder 60% are increasing too, adding further pressure to overall bills. For energy-intensive sectors like food and drink, the impact is substantial and will be felt from several angles. Higher electricity and gas costs affect everything from processing and refrigeration to storage and distribution. When combined with rising diesel prices and upstream pressures in agriculture, the cumulative effect becomes difficult to absorb. What can businesses do? While businesses cannot control global events or rising energy costs, they can take steps to reduce their exposure to the current energy crisis. In a rising market, reviewing your existing energy contracts and considering your options for renewal early, rather than waiting, can help manage risk. Delaying decisions in the hope of prices falling may expose businesses to further increases. Although prices are generally up from where they were, they do fluctuate daily, and there will be more and less favourable times to lock in. Working with a broker to monitor the market can help you do this at the best possible time. Reviewing your consumption and reducing the energy use, even marginally, can also have a meaningful impact when prices are high, particularly for F&B businesses where energy-intensive processes such as refrigeration, heating and compressed air are common. Energy audits can help unlock savings by identifying and tracking where, when and how energy is used. Developing a dedicated energy strategy for the future can also help. In times of turbulence, businesses may need to reassess their reliance on grid energy and explore options for diversification to create energy and cost security. This can be done in many ways, so working with a consultant can be helpful as this will depend on the business in question and its unique set up, operations and appetite to risk, but could include on-site generation, alternative procurement strategies or efficiency updates, to reduce cost. Finally, on the carbon front, there is a growing case for reviewing sourcing models. As global supply chains become more volatile and transport costs rise, sourcing closer to home, working with local farmers and producers may offer both cost stability, resilience and sustainability benefits. The key takeaway is that even if the current ceasefire holds, the energy crisis is unlikely to be a short-lived disruption. Even if geopolitical tensions ease, the damage to infrastructure, shifts in global supply routes and ongoing investment in domestic energy systems will continue to shape costs. In that environment, the businesses best placed to navigate the months ahead will be those that act early, review their energy strategy to reduce waste and reduce reliance on improve energy independence, taking control where they can. Because while the market cannot be controlled, exposure to it can be managed.