UK food and drink exports fell sharply in the first quarter of 2026, with the Food and Drink Federation (FDF) warning that domestic manufacturers are losing competitiveness in global markets amid rising production costs, trade barriers and the impact of US tariffs. According to the FDF's latest Trade Snapshot report, food and drink exports declined 4.8% year-on-year to £5.7 billion during Q1 2026. In volume terms, exports dropped 8.9% to 2.0 billion kilograms, the lowest first-quarter export volume recorded in the past decade, excluding the disruption seen during the Covid-19 pandemic. At the same time, imports continued to grow, rising 2.6% in value to £16.3 billion, further widening the UK's food and drink trade deficit. The downturn was led by weaker sales outside the European Union, with non-EU exports falling 11.5% compared with the same period last year. Exports to the United States were particularly hard hit, dropping 27.9% in value following the additional tariffs imposed by the US in April 2025. Meanwhile, imports of US food and drink products into the UK increased 11.5% to £419.5 million. As a result, the UK's food and drink trade surplus with the US has fallen by more than two-thirds, from £359 million in Q1 2025 to £110 million in the first quarter of 2026, the lowest level since Brexit. The FDF also warned that proposed UK tariff suspensions on selected imported food products, including chocolate, biscuits, jams and spreads, could further strengthen US exporters' position while UK manufacturers continue to face higher costs when exporting to America. The report also highlights weaker exports to markets where the UK has recently secured new trade agreements. Food and drink exports to members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) declined 11.3%, while export volumes to India fell 16.6%, suggesting UK manufacturers have yet to fully benefit from recently negotiated trade deals. The FDF said greater government support is needed to help businesses, particularly SMEs, access overseas markets and maximise the opportunities created by new agreements. Alongside weaker export performance, manufacturers continue to face rising production costs. Non-EU imports increased 4.2% in value during the quarter, while imports from the EU rose 1.9%. The federation noted that the cost of importing ingredients and raw materials, including plastic packaging, is now almost 39% higher than in January 2020. Combined with elevated energy prices and increasing regulatory requirements, higher input costs continue to squeeze margins across the food manufacturing sector. Exports to the EU also remained under pressure, declining 6.9% in volume terms compared with Q1 2025 and continuing the downward trend seen since Brexit. The UK's two largest export destinations, Ireland and France, both recorded declines in value terms, down 6.3% and 5.8% respectively. The FDF welcomed the recently agreed Sanitary and Phytosanitary (SPS) agreement between the UK and EU, saying it has the potential to reduce border checks and certification requirements. However, the organisation stressed that businesses need clarity on implementation timelines to begin benefiting from reduced trade friction. Karen Betts, chief executive of the Food and Drink Federation, said: "The UK produces world-class food and drink, drawing on our heritage and our reputation for innovation, but we have to be able to remain competitive overseas against local products." Betts argued that high energy costs, increasing employment costs and regulatory burdens are placing UK manufacturers at a disadvantage compared with international competitors. She also criticised proposals to suspend tariffs on imported finished food products, warning they could further undermine domestic production. "Government should suspend tariffs on ingredients rather than manufactured products, to lower the cost of producing food here in the UK and to help businesses keep prices down for consumers," she said.

Molinos Río de la Plata has signed an agreement to acquire Bodega Etchart from Pernod Ricard Argentina, strengthening its position in the Argentine wine sector and expanding its growing portfolio of premium wineries. The transaction, which remains subject to customary regulatory approvals and closing conditions, will see Molinos add one of Argentina's most historic and recognised wineries to its Fincas & Bodegas platform. Founded in 1850 and located in Cafayate, Salta, at the heart of the Calchaquí Valleys, Bodega Etchart is widely regarded as the flagship winery of northern Argentina. The producer is known for its Etchart and Cafayate wine brands, which showcase the distinctive terroir of the Salta region. The acquisition adds to Molinos' existing wine business, which includes Nieto Senetiner, Cadus, Ruca Malen and its partnership in Viña Cobos. The company said the move aligns with its long-term strategy to build a portfolio of differentiated wineries and strengthen the international presence of Argentine wines. Agustín Llanos, CEO of Molinos Río de la Plata, said: "The incorporation of Bodega Etchart represents a new step in the development of our Fincas & Bodegas platform. We deeply believe in the potential of Argentine wine and in the construction of brands with identity, quality and international projection. We are excited to welcome Bodega Etchart to Molinos." The acquisition also reflects the continued diversification strategy of the Perez Companc Group, which owns Molinos Río de la Plata and operates across the consumer goods, agriculture and energy sectors. For Pernod Ricard, the divestment marks another step in its ongoing strategic shift away from still wines to focus on its core spirits and champagne portfolio. The French drinks group acquired Bodega Etchart in 1996, approximately 30 years before agreeing to sell the business. The sale follows a series of wine asset disposals by Pernod Ricard. In 2024, the company completed the sale of the majority of its global wine operations, leading to the formation of Vinarchy through the combination with Accolade Wines. More recently, Pernod Ricard exited California's wine industry with the sale of its Mumm California assets to Trinchero Family Wine & Spirits, followed by the divestment of Kenwood Vineyards. Financial terms were not disclosed.

Finsbury Food Group has expanded its licensed celebration cake portfolio with the launch of its first-ever Hello Kitty-themed celebration cake, developed in partnership with Sanrio and available exclusively in Tesco stores nationwide. The new product, marks the first time the UK bakery manufacturer has incorporated pink vanilla sponge into one of its licensed character cakes, reflecting growing consumer demand for visually distinctive celebration products. Designed to appeal to both children and nostalgic adult fans of the globally recognised character, the cake features pink-coloured vanilla sponge layered with jam and a smooth white filling. It is finished with piped frosting, colourful sprinkles and a Hello Kitty design, serving up to 16 people in a 0.89kg format. The launch forms part of Finsbury's strategy to strengthen its position in the licensed celebration cake category, which continues to perform strongly across UK retail. The company believes Hello Kitty's broad cross-generational appeal presents a significant opportunity to attract shoppers seeking themed products for birthdays, family gatherings and other special occasions. Andrew Scott, brand manager at Finsbury Food Group, said "We're always looking for ways to bring more creativity into the celebration cake category, and this launch felt like the perfect match. Hello Kitty is an iconic character, so we wanted to create a cake that was just as memorable as the brand itself. With its vibrant pink sponge, the cake is designed to stand out on shelf and add a little extra joy to celebrations. We're confident it'll be a big hit with Hello Kitty fans of all ages." The product adds another high-profile licensed brand to Finsbury Food Group's portfolio as retailers continue to invest in character-led bakery products that deliver standout shelf appeal and drive impulse purchases. The partnership with Sanrio also reflects the continued popularity of heritage entertainment brands within the UK grocery sector. Finsbury Food Group supplies bread, cakes, morning goods and bakery snacks to major retailers, foodservice operators and export markets across the UK and Europe.

Dutch food-tech company The Protein Brewery has today (29 June 2026) announced an €18 million extension of its Series B funding round, led by ABN AMRO Sustainable Impact Fund. The company – a producer of mycelium-based ingredients, headquartered in Breda, the Netherlands – expanded the round beyond its initial target thanks to ‘strong investor demand’. In September 2025, it successfully closed a €30 million Series B funding round, with the latest extension bringing its total funding raised to date to more than €70 million. Joined by existing investors Invest-NL, Novo Holdings, Madeli and the Brabant Development Agency, the round will support The Protein Brewery’s continued growth. Particularly, it will help increase production capacity of its flagship Fermotein ingredient and expand commercially across Europe. The funding news comes just a couple of weeks after The Protein Brewery celebrated a major milestone in the approval of Fermotein in the European Union: the first whole-food novel mycelium ingredient to be approved for sale on the market under the EU Novel Food Regulation. Fermotein is a ‘mycoprotein’ ingredient made from the fungus Rhizomucor pusillus, designed to deliver clean-label and vegan-friendly nutrition across a wide range of food and beverage applications. Fermotein © The Protein Brewery With its latest funding raise, The Protein Brewery aims to expand production capacity to more than 2,000 MT through scaling operations at its facility in Mijkenbroek. After summer 2026, the company will focus on driving sales into Europe with a primary focus on active nutrition, including ready-to-mix powders and bars, and other functional foods and beverages. Investment will also support the advancement of clinical and scientific research into the ‘longevity-promoting’ benefits of Fermotein, as well as pursuing further regulatory approvals in new markets including Canada, Australia, New Zealand and India. Thijs Bosch, CEO of The Protein Brewery, said: “Building a completely new ingredient category takes patience and investment in the right activities, at the right time. With this additional funding, we move from proving that whole-food mycelium is a desirable ingredient to delivering it at the scale that brands and manufacturers need.” Due to Fermotein’s nutritional profile – containing approximately 50% protein with all essential amino acids, and 30% dietary fibre – the company believes it is ideally positioned to meet demand for functional foods targeting longevity, gut health, metabolic health (including GLP-1 support) and muscle maintenance. The Protein Brewery has already sold out its 2026 capacity to customers in the US, and is working with initial customers in active nutrition in the EU and UK. Ugur Yuksel, investment manager at ABN AMRO Sustainable Impact Fund, commented: “The Protein Brewery has successfully translated strong scientific foundations into a robust industrial-scale production process and a growing commercial business, exactly the profile we look for in companies that can deliver measurable environmental impact at scale”.

The Coca-Cola Company has announced that Jennifer Mann will step down as executive vice president and president of its North America Operating Unit, effective 1 August, following nearly three decades with the beverage giant. John Murphy, the company's president and chief financial officer, will assume responsibility for the North America Operating Unit on an interim basis while Coca-Cola conducts a search for a permanent successor. Mann will remain with the company as a senior advisor through April 2027 to support a smooth leadership transition. Mann has led Coca-Cola's largest operating unit since January 2023, overseeing a period of strong revenue and profit growth as the company continued to expand its position as a total beverage business. Henrique Braun, CEO of The Coca-Cola Company, said: "I am grateful to Jennifer for her tremendous contributions to The Coca-Cola Company as an operator and leader. Her people-first legacy remains in the many high-performing teams she's led across the Coca-Cola business." During her 29-year career at Coca-Cola, Mann held a series of senior leadership positions across operations, strategy and people management. Before taking charge of the North America business, she served as president of global ventures, where she oversaw brands including Costa Coffee and the company's investment in Monster Beverage. She also served as senior vice president and chief people officer, chief of staff to former CEO James Quincey, and vice president and general manager of Coca-Cola Freestyle, where she helped drive the global expansion of the self-serve beverage platform. Mann joined Coca-Cola in 1997 in the national customer support division and has since held leadership roles spanning customer operations, foodservice strategy and marketing. In addition to her executive responsibilities, Mann serves on the boards of several organisations, including Verizon Communications, the American Beverage Association, Boys & Girls Clubs of America, Coca-Cola FEMSA, Fairlife, Morehouse College and Ronald McDonald House Charities. The leadership change comes as Coca-Cola continues to build on its strategy as a total beverage company, with a portfolio spanning carbonated soft drinks, water, sports drinks, coffee, tea, juice and dairy beverages sold in more than 200 countries and territories. The company said it will announce a permanent successor for the North America Operating Unit at a later date.

According to Financial Times’ reporting today (26 June 2026), Unilever is exploring a bid for US-based supplements maker Thorne. Thorne, founded in 1984 and headquartered in Summerville, South Carolina, produces a range of dietary supplements across formats including ready-to-mix powdered beverages, as well as softgels and capsules. The deal could reportedly value Thorne at up to $4 billion. The company was acquired by investment firm L Catterton in 2023, with the firm returning Thorne to the private market in a $680 million takeover. © Thorne Now, citing sources familiar with the process, the Financial Times has reported that Unilever is one of several interested bidders exploring an acquisition of the health and nutrition company. Consumer healthcare group Haleon is also said to be among these, according to Reuters. Unilever has recently made a series of significant restructuring and streamlining changes, including the spin-off of its ice cream unit, the sale of food brands such as Graze and The Vegetarian Butcher, and the combination of its food business with McCormick & Company. Meanwhile, the food giant has been expanding its presence in the health and wellness market specifically – earlier this year, it announced the acquisition of US-based greens supplement brand Grüns for an undisclosed amount. Unilever declined to comment on the reports when approached by FoodBev.

Horlicks has expanded its children's Chocoland range with the launch of fortified milk straws, marking the brand's first entry into the growing milk straw category. Available exclusively through Home Bargains, the new Horlicks Kids Chocoland Milk Straws are designed to offer a fun and convenient way for children to enjoy flavoured milk while delivering added vitamins and minerals. The first-to-market product combines Horlicks' signature malty chocolate flavour with a straw format that flavours milk as it is sipped. Consumers simply place one straw into 200ml of cold milk to create a smooth malted chocolate drink. Each straw is fortified with vitamins A and B12, alongside calcium and zinc, supporting the brand's longstanding positioning around nutrition and family-friendly beverages. The launch builds on Horlicks' expanding Chocoland portfolio as the brand continues to diversify beyond its traditional malted drinks with products aimed at younger consumers. Rebekha White, senior brand manager at Horlicks, said: "We're so pleased to announce the expansion of our popular Chocoland range, as we launch our new milk straws. Designed to create fun, everyday malty moments for kids and families alike, the new straws are fuss-free, fun and perfect to mix up their milk drinks, or for a quick after-school treat." The product is available now in Home Bargains stores nationwide, with an RRP of £1.49 for a pack of 10 straws.

Speciality ingredients and chemicals company IMCD has opened its new Food & Nutrition US Technical Hub in New Jersey, US, alongside a Pharmaceutical Technical Centre. The new facilities, located at IMCD’s new offices in Allendale, are part of the company’s global network of more than 80 technical centres. These centres are designed to facilitate technical development and knowledge sharing, offering expanded laboratory capabilities for product innovation alongside a learning space for technical seminars and workshops. The facilities bring together IMCD’s teams, customers and suppliers to collaborate on solutions across the food and beverage, nutraceutical and pharmaceutical markets, aiming to transform concepts into real-world solutions quickly and efficiently. A dedicated Food & Nutrition Application Lab and Bakery Lab are included within the Food & Nutrition Technical Hub. These will enable co-creation of trend-driven formulation solutions across bakery, beverage, confectionery, dairy, nutrition and savoury applications. Emilie Pharand, vice president of Food & Nutrition for North America at IMCD, spoke about the new hub: “It is a destination for collaboration, creativity and technical excellence, where market understanding and formulation expertise come together to accelerate ideas from concept to commercialisation. We are excited to welcome customers and partners into this space to co-create what’s next.”

Food System Innovations (FSI) has launched the Food Intelligence Lab, a new interdisciplinary initiative designed to build the AI infrastructure needed to accelerate research and development across the sustainable protein sector. Backed by a $2 million grant from the Bezos Earth Fund awarded last year, the lab will develop open-source datasets, machine learning models and benchmarking tools that aim to shorten product development timelines and improve the sensory performance of plant-based and other sustainable protein products. The announcement comes as alternative protein companies continue to face slowing consumer adoption, driven in part by persistent concerns around taste and texture despite years of investment in formulation improvements. Anna Thomas, director of machine learning at the Food Intelligence Lab and a computer scientist at Stanford University, said: "AI is already transforming fields like drug and materials discovery, but food still lacks the shared infrastructure needed to fully unlock the potential of AI in this space. We're building tools to help food scientists iterate faster and create truly exceptional sustainable protein products." Unlike sectors such as pharmaceuticals, where extensive public datasets have accelerated AI development, food formulation remains constrained by fragmented data, proprietary research and expensive experimental cycles. The Food Intelligence Lab aims to address that gap by creating large-scale, open datasets that combine sensory evaluations with instrumental measurements such as texture profile analysis, pH and shear testing. These resources will underpin AI models capable of predicting consumer-relevant attributes, including taste and texture, before products undergo physical testing. The initiative will also collaborate with food companies, academic researchers and non-profits to translate those models into commercial R&D workflows. FSI highlighted an early collaboration with Proxy Foods AI, in which the teams developed an optimisation system known as Expert-Guided Bayesian Optimisation (EGBO). According to the organisation, the AI system improved the sensory performance of a plant-based Greek-style yogurt by 29% in just 10 formulation iterations completed over five days. The optimised formulation matched an animal-based benchmark on three of four key sensory attributes – consistency, creaminess and tanginess. FSI also reported that EGBO outperformed a professional food scientist working under the same time constraints, achieving a higher optimisation score while arriving at a stronger formulation more quickly. Panos Kostopoulos, founder and CEO of Proxy Foods AI, said: "Food scientists shouldn't have to spend months on trial-and-error to get texture, mouthfeel, flavour, and aftertaste right." Kostopoulos continued: "Partnering with FSI's Food Intelligence Lab to open-source these tools is how we accelerate those breakthroughs and ultimately change how we feed the planet for the better." Beyond formulation optimisation, the lab is also developing AI tools to predict sensory outcomes, an area that could reduce the industry's reliance on costly and time-consuming consumer taste panels. Researchers recently introduced TasteBench, an open benchmark and Kaggle competition that evaluates AI models on their ability to predict how closely sustainable protein products resemble their animal-based counterparts. According to FSI, the strongest AI model currently performs at roughly the level of the median human sensory panellist. The organisation believes combining scientific literature, experimental data, foundation models and human expertise will eventually enable AI systems to recommend the next best formulation experiment, significantly reducing development timelines. The launch reflects a broader trend toward applying artificial intelligence across food product development, as manufacturers seek to improve formulation efficiency while lowering development costs. For the alternative protein sector, where consumer acceptance remains closely tied to sensory quality, more accurate predictive tools could help companies bring better-performing products to market faster while reducing reliance on costly trial-and-error experimentation. By making its datasets, benchmarks and models openly available, FSI also hopes to lower barriers for start-ups, academic researchers and established manufacturers, encouraging greater collaboration across the sustainable protein ecosystem. The Food Intelligence Lab's research, including papers on EGBO and TasteBench, will be presented at the AI for Scientific Discovery Workshop during the 2026 International Conference on Machine Learning.

The White House has signalled a significant shift in federal hemp policy, urging Congress to replace a proposed ban on hemp-derived cannabinoid products with a comprehensive regulatory framework that would preserve consumer access while strengthening product safety standards. The recommendation was included in the Administration’s $87.6 billion supplemental funding request to Congress, which is primarily focused on national security, public health and agricultural support. Alongside $11.1 billion in assistance for American farmers, including $10 billion in temporary economic relief for crop producers and $1.1 billion for Florida agricultural recovery following severe winter storms, the proposal also addresses the future regulation of hemp-derived products. Historically, there have been contradictory regulations on THC and hemp-derived products. In the US specifically, it is particularly fragmented, while legal in some states, THC products cannot cross state lines, unlike hemp-derived products, which consistently face federal restrictions across the country, with individual states interpreting the rules differently. The Administration is seeking legislative authority to revise federal hemp regulations to ensure the fair treatment of hemp products in line with Amendment 54 to H.R. 8646, bipartisan legislation championed by Congressman Andy Barr. At a minimum, the White House is requesting an extension of the current moratorium delaying implementation of Section 781 of Public Law 119-37, which is due to expire in November. According to the funding request, the proposed changes would update the statutory definition of final hemp-derived cannabinoid products, allowing consumers continued access to appropriate full-spectrum CBD products while maintaining Congress’s intention to restrict products considered to pose significant health risks. The move is being viewed as a notable endorsement of a regulated marketplace rather than an outright ban of hemp-derived cannabinoids. Across the industry, stakeholders have long argued that a clear federal regulatory framework would provide greater certainty for manufacturers, retailers and consumers while establishing consistent quality standards and safety across the market. The US Hemp Roundtable welcomed the Administration’s position, describing it as an important step forward. In a statement, Jonathan Miller, general counsel of the US Hemp Roundtable, said: “We are excited that the President take such a strong public stance in favour of replacing the hemp ban with a strong regulatory framework, or at minimum, securing an extension of the hemp ban moratorium to give Congress more time to develop regulations.” Miller continued: "This is an important step in honouring Congress' promise to help farmers and consumers." The White House’s proposal now places hemp regulation firmly before lawmakers as Congress considers the supplemental appropriations package in the coming days. Adam Fagan, CRO of hemp-derived THC beverage manufacturer Hightails, said: "We are very proud to see that both sides of the Hill are listening to the people – the farmers, the retailers and the small businesses that make up the $28 billion hemp industry with over 300,000 American jobs. Hemp products have been embraced for wellness, and hemp beverages have firmly fit into how Americans socialise and relax." For the food and beverage sector, the outcome of Congressional negotiations could prove pivotal across the industry. A federal regulatory framework for hemp-derived cannabinoids has long been sought by producers seeking greater legal clarity around formulation, labelling, interstate commerce and consumer confidence.

Sirio Europe has launched the full version of its FizzyBits platform, expanding the instant fizzy tablet format into a ready-to-launch supplement portfolio covering ten formulations. The tablets dissolve directly on the tongue and do not require water, positioning the format as an alternative to traditional pills, capsules and powders. Sirio said the range is designed to meet growing demand for convenient supplement formats while giving brands a faster route to market. First introduced in 2025, FizzyBits has now been expanded to cover areas including metabolic support, iron nutrition, cognitive focus, recovery, joint health, multivitamins and vitamins C, D and B12. At the premium end of the range is Aeion BodyBalance, a metabolic and glucose support formulation developed for the growing GLP-1 companion market. The product contains BPL1, a clinically studied postbiotic, alongside chromium and vitamins C, B6 and B12. Sirio said chromium contributes to the maintenance of normal blood glucose levels, while vitamins C, B6 and B12 support normal energy-yielding metabolism. The product is designed to be taken as two FizzyBits tablets per day. The portfolio also includes FizzyBits Pulse, an iron-focused formulation combining iron, vitamin C, vitamin B6 and folic acid. The product supports normal energy-yielding metabolism and the reduction of tiredness and fatigue, with vitamin C included to support iron absorption. Sirio said the product’s natural lemon flavour helps mask the metallic aftertaste often associated with iron supplements. FizzyBits Spark is a caffeine-free cognitive support product containing 50mg of l-theanine from green tea leaf extract, alongside B vitamins and zinc. The formulation is designed for consumers seeking focus and balance during the day and has a menthol finish. Alexej Dens, sales director of Sirio Europe, said: “The full FizzyBits range gives brands a practical starting point across the health categories that matter most right now. Vitamins C, D and B12, multivitamins, energy, recovery, joint health and metabolic support – the formats are developed, the regulatory groundwork is done, and the sensory profile is already proven with consumers.” He added: “For brands that want to move quickly without compromising on quality or compliance, that combination is genuinely difficult to find elsewhere. Crucially, the enjoyable, water-free format supports everyday use, helping consumers build consistent routines over time, which is what ultimately underpins long-term value for both brands and their customers.” Sirio said the launch reflects growing consumer interest in supplement formats that are easier to use and more enjoyable as part of daily routines.

Around 150 roles in Ireland may be impacted as part of organisational changes at Diageo. The changes form part of the drinks giant’s previously announced plans to redesign its operating framework, as it looks to create a more competitive business and deliver sustainable returns for shareholders. A Diageo spokesperson said: “In February [interims] we shared our intention to redesign our operating framework, to drive sustainable returns for shareholders by delivering a more competitive Diageo". "We will always prioritise informing our colleagues of any organisational changes first and have committed to update shareholders on our progress at a Capital Markets Day on 6 August.” The update follows Diageo’s interim results announcement earlier this year, when the company outlined plans to reshape its business structure as part of a broader efficiency drive. In January, the drinks giant was reported to be considering a sale of its China assets as part of an operational review.