James Watson James Watson, partner at Argon & Co UK, examines how uncertainty around the EU exports deal is affecting risk exposure, operational resilience and long-term investment across the UK food and drink sector. When the UK Government unveiled its flagship EU exports deal last year, a Sanitary and Phytosanitary (SPS) agreement designed to ease agri-food trade between the UK and EU, it was framed as a turning point for post-Brexit commerce. By scrapping many routine border checks and cutting administrative burdens, the agreement aimed to reduce friction at the border and ultimately help stabilise food prices for consumers. This agreement was seen as a vital way to restore a degree of predictability to EU agri-trade. Since Brexit, many UK food and beverage (F&B) manufacturers continue to struggle with additional customs procedures, border delays and additional paperwork that complicate supply chains and add costs. For a sector operating on notoriously tight margins, even small delays can affect the shelf life of perishable goods, increasing waste and eroding profitability. Restoring smoother trade with the EU, therefore, appeared to offer much-needed relief. But warnings of poor preparation and staff shortages are already threatening to derail that optimism. The Department for Environment, Food and Rural Affairs (Defra) is urging food businesses to begin preparing for the deal, but with so much uncertainty in the air, knowing where and how to take action is challenging. While the deal is likely to be in place in mid-2027, the industry is already having to make decisions with major implications far beyond that date. A sector already under strain This turbulence around the SPS agreement is also landing at a time when the UK F&B industry is already contending with a range of structural pressures. Our recent research report, Operations Outlook 2026, highlights just how challenging that landscape has become. It found that rising operating costs – such as higher Employer National Insurance and increases to the National Living Wage – are the top challenge for 54% of C-suite leaders, while 46% of F&B leaders say workforce challenges are their primary issue. Geopolitical instability is adding another layer of risk, too. Conflict in the Middle East is fuelling uncertainty across the global fertiliser supply chain, which is threatening agricultural production costs, while rising oil prices are impacting transport and logistics costs, farm equipment, and even plastic packaging in the F&B industry. Against this backdrop, uncertainty over SPS implementation adds another variable into an already fragile operating environment. Many firms are responding by tightening their belts and delaying longer-term resilience investments. According to our research, 53% of F&B leaders are delaying technology investments until market conditions stabilise. Advanced planning systems, predictive analytics and digital transformation programmes – projects that build resilience over time but do not deliver immediate cost relief – are often the first to be paused. While this approach may protect short-term margins, it risks leaving organisations less equipped to deal with the next disruption when it inevitably arrives. Why contingency planning is becoming essential One clear lesson from the SPS uncertainty is the growing importance of contingency planning. Today, F&B manufacturers need to be prepared for multiple scenarios – whether that’s supply chain disruptions, geopolitical risks or entirely compliance requirements emerging at short notice. For agri-food businesses, even seemingly minor regulatory changes can have major operational consequences. Changes to documentation, certification or inspection procedures can quickly ripple through supply chains, so the ability to adapt and be flexible is vital. To prepare for these possibilities, some firms are turning to digital tools to stress-test their operations before disruption occurs. Digital twins, for example, allow organisations to build virtual replicas of their supply chains or manufacturing networks, so they can model the impact of extended border delays, additional documentation checks, or sudden cost increases. Leaders gain visibility of where bottlenecks emerge and how service levels are affected, before disruption impacts the value chain. Technology alone won’t solve the problem When regulations change quickly, resilience comes down to how fast you can see disruption coming, model its impact, and re-route operations. Much of this is ultimately a data and decision-making challenge. Artificial intelligence (AI) and automation are increasingly discussed in this context, as they have clear potential in managing documentation and forecasting delays. But technology alone is not enough. Many F&B manufacturers still struggle to realise value from digital investments due to low adoption, often facing resistance from employees hesitant to trust or use new tools. The industry also faces ongoing challenges to attract digital talent. The organisations that navigate uncertainty most effectively will align technology, people, and processes together – redesigning how work is done, rather than just updating the tools used to do it. In the F&B industry, leaders can also connect technology transformation to a wider purpose. When employees understand how digital tools contribute to certain goals – like safeguarding food supply, reducing waste, or improving the nutritional quality of what people eat – adoption tends to improve, and resilience becomes embedded across the organisation.

Met Foods, the producer behind dairy-free brands Nush Foods and Cocos Organic, has entered the functional wellness beverage category with the launch of Mushus, described as the UK’s first lightly sparkling skincare drink featuring vegan collagen. Mushus is positioned at the intersection of beauty, gut health and functional beverages, reflecting growing consumer demand for ingestible wellness products that combine convenience with targeted health benefits. The range debuts in two flavours, Raspberry Fizz and Pineapple Fizz, sold in 250ml six-packs priced at £20. Each lightly sparkling drink contains real fruit juice and is formulated with 3g of plant-based collagen, hyaluronic acid, clinically researched probiotic strain HU58 and organic tremella mushroom. According to the company, the formulation is designed to support hydration, skin elasticity and the gut-skin axis, while offering a vegan alternative to traditional bovine and marine collagen products. Met Foods said the vegan collagen ingredient uses a triple helix structure intended to mirror conventional collagen and claims the ingredient is up to five times more bioavailable than bovine alternatives due to its lightweight peptide structure. The drinks contain no added sugar, artificial sweeteners or preservatives and are positioned as vegan, dairy-free and gluten-free, with fewer than 20 calories per 100ml. Founder Bethany Eaton said: “I am so excited to bring Mushus to market as the first skincare drink of its kind, built around our three core ingredients. I wanted to simplify what can often feel like an overwhelming routine of supplements, and create something convenient, effective and enjoyable to take every day.” She added that sustainability and sensory appeal were key reasons for choosing vegan collagen over animal-derived alternatives. “For me, it’s about rethinking how we approach beauty and wellness, don’t take your skin supplements, drink them,” Eaton said. The launch reflects continued momentum within the functional drinks category, where brands are increasingly targeting areas such as beauty, cognitive health, digestion and immunity with ingredient-led beverage innovations. Mushus also taps into growing consumer interest in the “beauty-from-within” market, where products combining probiotics, collagen and hydration-focused ingredients are seeing rising demand among wellness-focused consumers. The company said the drinks are designed to function both as a wellness supplement and a lifestyle beverage, combining functional ingredients with a format intended to feel more approachable than traditional capsules or powders. Both Raspberry Fizz and Pineapple Fizz are intended to be consumed chilled as part of a daily wellness routine, with Met Foods positioning the range as a convenient option for consumers seeking multifunctional health support in ready-to-drink formats.

Cullen Sustainable Packaging is scaling up manufacturing operations following rising demand for sustainable fibre-based packaging solutions. The Glasgow-based business is targeting a doubling of production capacity through continued investment in machinery and infrastructure. The company currently produces around 0.5 billion packaging products annually and says further investment will support expansion across both existing and emerging markets as demand for moulded fibre and corrugated packaging continues to grow. The expansion comes amid increasing regulatory pressure on plastic packaging, with Extended Producer Responsibility (EPR) legislation reshaping packaging economics across the UK and prompting food and beverage brands to accelerate the shift toward recyclable and plastic-free alternatives. At the centre of Cullen’s latest investment programme is the launch of its new Moulded Fibre Machine 8000, a proprietary production line designed and built entirely in-house by the company’s engineering team. Developed over six months, the machine was brought online to increase throughput and support rising customer demand across key sectors, including food and drink, ecommerce, medical and industrial packaging. Unlike many packaging manufacturers that source equipment externally, Cullen designs and manufactures much of its own machinery internally, allowing greater control over production speed, output and product specifications. Machine 8000 incorporates the company’s latest belt technology, improving both efficiency and product quality, according to the business. The investment forms part of a wider £2 million infrastructure upgrade programme, which also includes enhancements to existing production lines and the installation of a new Kasemake X5 corrugate sample table aimed at accelerating packaging prototyping and customer sample development. A Cullen representative said the investment has also supported job creation at its Glasgow facility, where the workforce has expanded steadily alongside business growth over the past decade. The company operates what it describes as a closed-loop recycling system, processing more than 8,000 tonnes of corrugated waste annually and feeding the material directly back into moulded fibre production. The approach is designed to embed circularity into the manufacturing process while reducing material waste. The business is also reporting strong growth in newer market segments, where brands are increasingly seeking plastic-free packaging. Maureen Stevenson, head of marketing at Cullen Sustainable Packaging, said: “This investment is a response to real, sustained demand from our customers. The new machine ramped up quickly following launch, and we are already planning the next phase of expansion. That is what growth-led investment looks like in practice, not speculation, but response.” Serving customers across 35 countries from its 14-acre Glasgow manufacturing base, Cullen said additional capacity investments are already planned in anticipation of continued growth across sustainable packaging categories.

My/Mochi has introduced a new Cotton Candy mochi ice cream flavour. The launch adds a fan-requested option to the brand’s portfolio and aligns with growing consumer interest in nostalgic and visually playful snacks. The product combines cotton candy-flavoured ice cream wrapped in soft rice dough, creating a multi-textured snack at around 70 calories per piece. The brand positions the flavour as a nod to fairground and boardwalk-style treats. Brigette Wolf, chief marketing officer at My/Mochi, said the launch reflects the company’s focus on sensory-led snacking: “My/Mochi is all about enabling people to experience playful, sensorial joy in a snackable treat. Cotton candy is the perfect flavour for this cultural moment where people are craving treats that deliver a unique combination of taste, texture and the opportunity for engaging social content.” Wolf added that the product contains no artificial flavours, colours or dyes, consistent with the wider My/Mochi range. She also said the company prioritises taste accuracy while maintaining ingredient standards across product development. The Cotton Candy mochi is gluten- and nut-free. It is now available at retailers across the US, with an RRP of $5.99 for a six-pack.

Atlantic Grupa has invested €11 million in hydration brand Waterdrop, acquiring a minority stake and securing a seat on the company’s investment committee, deepening an existing distribution partnership across Austria, Croatia, Serbia and Slovenia. The move strengthens a collaboration that began as a regional distribution agreement and now shifts into a closer strategic and financial relationship. Through the new stake, Atlantic Grupa will gain direct insight into Waterdrop’s operations and support its long-term growth strategy. Founded in Vienna, Waterdrop develops 'Microdrinks,' compressed sugar-free cubes designed to flavour water with fruit and plant extracts. The company positions the products as a healthier and more sustainable alternative to traditional soft drinks. Production is handled in its own facility in Germany, which it says helps maintain quality control and consistency. Over the past decade, Waterdrop has expanded into a global brand with around €150 million in annual revenue. It now operates across Europe, the United States, Australia and Japan, combining direct-to-consumer sales with branded retail stores and selected distribution partners. The company runs roughly 50 physical stores in major cities, blending digital and in-store retail experiences. Its growth has also been supported by high-profile marketing partnerships, including collaborations with international sporting events such as the Australian Open and professional tennis players. Martin Donald Murray, chief executive of Waterdrop, said the investment builds on a strong existing relationship with Atlantic Grupa and adds further strategic depth to their cooperation. Lada Tedeschi Fiorio, group vice president for corporate strategy and investments at Atlantic Grupa, said the company sees strong potential in Waterdrop’s international expansion and is confident in its long-term growth prospects, particularly in European markets.

Canadian dairy cooperative Agropur has announced a sweeping investment plan of approximately CAD 1 billion (approx. $735 million) to modernise and expand key processing facilities in Eastern Canada. The announcement was made during the Cooperative’s 2026 Delegates’ Summit, where Roger Massicotte, Émile Cordeau and Maxime Devourdy outlined major capital projects at plants in Beauceville, Quebec and Bedford, Nova Scotia. The investments are aimed at strengthening Agropur’s capabilities in value-added protein manufacturing while responding to rising domestic demand for protein-enriched products. Massicotte emphasised the cooperative’s commitment to its producer members, noting that the projects are designed to support sustainable growth across Quebec and the Maritimes. He also acknowledged the financial backing and collaboration of provincial governments in enabling the initiative. Cordeau described the programme as a transformative step for Agropur’s processing network, highlighting the replacement of ageing infrastructure with advanced automation and cutting-edge technologies. These upgrades are expected to deliver substantial efficiency gains, increase milk processing capacity and enhance the cooperative’s ability to produce higher-value dairy ingredients. The projects are also anticipated to generate more than 90 skilled jobs, with the majority based in Beauceville and additional roles in Bedford. The Eastern Canada investments form part of a broader North American strategy to pivot toward value-added proteins. According to Devourdy, Agropur has already committed more than CAD 130 million (approx. $96 million) this year to facilities in the United States, specifically in Wisconsin and South Dakota, to further strengthen its ingredients portfolio. Beyond capacity expansion, the investment aligns with Agropur’s wider focus on operational excellence and sustainability. The cooperative is prioritising energy efficiency improvements and the adoption of more environmentally responsible production practices, reflecting growing industry pressure to balance productivity with environmental stewardship. While the projects represent a significant milestone, they remain subject to final approval by the end of 2026. In the interim, Agropur will continue detailed planning and financing efforts to secure the necessary authorisations.

General Mills has promoted Dana McNabb to chief operating officer as the food giant expands her leadership role to help drive growth and strengthen operations across its global business. Dana McNabb The appointment takes effect 1 June 2026. McNabb will continue reporting to CEO and chairman Jeff Harmening and will also join the company’s board of directors. McNabb currently serves as group president of North America Retail and North America Pet. Under her new role, she will oversee all of General Mills’ operating segments and several core functions, including international operations, foodservice, supply chain, digital and technology, innovation and corporate strategy. Harmening described McNabb as a “disciplined, strategic leader” who has helped drive efforts to strengthen the company’s brands and consumer appeal. McNabb has held several senior leadership positions during her nearly three decades at General Mills, including chief strategy and growth officer, president of the company’s Europe and Australia business, and president of its US cereal division. She also previously served as vice president of global marketing for Cereal Partners Worldwide, General Mills’ joint venture with Nestlé. She joined General Mills in Canada in 1999 and has worked across multiple categories including cereal, snacks, meals and dairy. General Mills, whose brands include Cheerios, Nature Valley, Blue Buffalo and Häagen-Dazs, reported fiscal 2025 net sales of $19 billion. Top image: © General Mills

Italian cheese brand Galbani is accelerating premiumisation within the UK chilled dairy category with the launch of two new mozzarella-based products designed to broaden usage occasions and attract new shoppers. The launches, Galbani Burrata Minis and Galbani Mozzarella Basil Infusion, rolled out from April and mark a strategic push to bring added convenience, flavour innovation and differentiation to the fixture. Galbani Burrata Minis introduce a new format to the expanding burrata segment, offering six 30g bite-sized portions of mozzarella filled with cream. Produced in Italy, the minis are positioned as a convenient, lower-waste option for consumers seeking premium indulgence in smaller servings. The format is expected to drive incremental usage across salads, pasta dishes and summer entertaining occasions, where demand for premium sharing formats continues to rise. Meanwhile, Galbani Mozzarella Basil Infusion brings flavour-led innovation to the core mozzarella category. Infused with natural basil extract, the product delivers a subtle twist on the brand’s classic offering, aimed at inspiring meal upgrades across pizzas, salads and pasta. The launch also taps into seasonal trends such as barbecues and alfresco dining, where Mediterranean flavours remain a strong consumer draw. Both products are designed to strengthen Galbani’s presence in the chilled cheese aisle by combining authentic Italian credentials with modern consumer needs around convenience and versatility. Héloïse Le Norcy-Trott, group marketing director at Lactalis UK & Ireland, said: "We’re seeing strong demand for products that combine quality, convenience and versatility, and these launches are designed to help retailers meet that need while unlocking more occasions for Italian cheese." Galbani Burrata Minis launched in Waitrose from 22 April, with a wider rollout to Tesco scheduled from 26 May. Mozzarella Basil Infusion is also available in Waitrose from April, with both products supported by promotional pricing to encourage initial trial. With more than 140 years of heritage, Galbani continues to position itself as a leader in authentic Italian cheese, leveraging innovation and marketing investment to drive growth in an increasingly competitive and premium-led category.

Finnish food-tech company Solar Foods is participating in the ambitious BalticSeaH2 initiative, one of Europe’s largest cross-border hydrogen valley projects. Backed by €350,000 in project funding, Solar Foods will accelerate the development and scale-up of Solein, its novel protein ingredient produced using hydrogen and carbon dioxide. The funding will specifically support capacity expansion at the company’s commercial-scale facility, Factory 01. BalticSeaH2 aims to establish a fully integrated hydrogen ecosystem across the Baltic Sea region, bringing together 40 partners across nine countries. With a total project value of €33 million (€25 million of which is funded by the EU), the initiative supports more than 20 use cases demonstrating hydrogen applications across sectors. Solar Foods’ contribution stands out as one of the few food-focused applications in the project. Its proprietary gas fermentation process uses hydrogen as a core input, alongside captured carbon dioxide, to cultivate a single microbe into a nutrient-rich protein. The result is Solein, a versatile ingredient that can be used in a wide range of food products or as a nutritional fortifier. Petri Tervasmäki, chief technical officer at Solar Foods, said: “We are excited to join BalticSeaH2 and contribute to building integrated hydrogen value chains. Hydrogen is a key raw material in our process, and we are proud to be pioneering its use in food production.” At Factory 01, hydrogen is generated via electrolysis, splitting water into hydrogen and oxygen using renewable electricity. Looking ahead, Solar Foods is planning its next facility, Factory 02, which is expected to increase annual production capacity from 160 tonnes to 6,400 tonnes. The company intends to collaborate with strategic partners to produce hydrogen at the new site, enabling it to focus on refining its fermentation technology and scaling up global commercialisation efforts. Unlike traditional agriculture, Solein production is independent of land use, weather and climate conditions. This positions it as a potentially transformative solution for food security and sustainability, particularly as the food industry seeks to reduce its environmental footprint. Beyond BalticSeaH2, Solar Foods is also involved in the H2 Springboard ecosystem, further reinforcing its commitment to advancing hydrogen-based technologies.

At Interpack 2026, packaging technology specialist Sidel has unveiled a next-generation edible oil bottle that signals a shift in how PET packaging is designed and manufactured. The 1L bottle, produced using advanced laser heating technology, introduces a redesigned structure that reduces weight by 20% compared to conventional halogen-blown alternatives, without compromising performance across consumer use or supply chain demands. Weighing just 16.5g, the new bottle achieves a 4g reduction versus a comparable 20.5g halogen-blown version. The innovation lies in how material is distributed: PET is concentrated only in areas that contribute to mechanical strength, while excess material is eliminated elsewhere. This targeted approach represents a departure from traditional packaging design, where additional material has often been used as a default method to ensure strength. At the centre of the design is Sidel’s Power Ring, which reinforces key stress zones to maintain durability during opening and pouring. The structure also preserves grip for consumers, an essential consideration in edible oil packaging. From a logistics perspective, the bottle maintains vertical strength and top-load resistance comparable to heavier formats, ensuring it can withstand transportation and storage conditions across the supply chain. The bottle is manufactured from 100% recycled PET (rPET), aligning with growing industry demand for sustainable packaging solutions. By combining recycled materials with reduced plastic usage, the design supports both circularity and material efficiency goals. At Interpack, Sidel is showcasing the laser-blown bottle alongside its halogen-blown counterpart, giving industry stakeholders the opportunity to directly compare weight, strength and performance characteristics through interactive displays.

Trü Frü has launched a new frozen product line aimed at bringing a yogurt-inspired twist to the frozen aisle. The range features farm-fresh fruit that is flash frozen to preserve flavour and nutrients, then coated in layers of creamy Greek yogurt and white chocolate, with granola pieces blended in for added crunch. The new collection includes frozen strawberries with Greek yogurt, white chocolate and granola; frozen raspberries with Greek yogurt, white chocolate and granola; and frozen bananas with Greek yogurt, white chocolate and granola. The products are now available at retailers nationwide.

More than 63,000 containers of A2 Platinum Premium Infant Formula have been recalled in the US after testing identified contamination with cereulide, a toxin produced by certain strains of Bacillus cereus. The voluntary recall, issued by the A2 Milk Company, covers three imported batches of its 0-12 months milk-based powdered infant formula with iron, sold in 31.7oz tins. An estimated 16,428 units are believed to have reached consumers through distribution channels including the company’s website, Amazon and Meijer stores under Operation Fly Formula. The affected batch numbers are 2210269454 (use by 15 July 2026), 2210321712 (use by 15 January 2027), and 2210324609 (use by 21 January 2027). Batch and expiry details are printed on the base of each tin. According to the company, cereulide is a heat-stable toxin that is not destroyed during formula preparation, including when hot water is used. The toxin can cause foodborne illness, with symptoms such as nausea and vomiting typically appearing within 30 minutes to six hours of consumption and resolving within 24 hours in most cases. Infants are considered more vulnerable to complications such as dehydration due to their developing immune systems. The recall was initiated after additional testing carried out in response to updated guidance from New Zealand’s food regulatory authority. The company said the likely source of the contamination is an ingredient used in the product. No confirmed illnesses or adverse events have been reported to date. However, the company is advising consumers not to use products from the affected batches. The recall affects a total of 63,078 units across the three batches. The product has already been discontinued and removed from sale, as importation rights expired at the end of December 2025. The action is being undertaken with the knowledge of the US Food and Drug Administration.