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<\/p>\nFrom sausages and seasonings to ice cream and beer, Yorkshire\u2019s food and drink leaders have lived through one of the most turbulent decades the sector has ever faced. Yet at a roundtable table hosted by Forvis Mazars, there was little appetite for self-pity – only a harder-edged acceptance.<\/p>\n
There was a sense that something fundamental has shifted in how Yorkshire\u2019s food and drink industry sees itself. Not a crisis. Not anymore. Something more permanent: a new operating reality.<\/p>\n
The sector has always been shaped by pressure – an industry defined by tight margins, complex supply chains and the constant balancing act between cost, quality and consistency in a market that rarely stands still.<\/p>\n
The stability businesses once planned around has gone. Volatility is now baked into the operating environment. The businesses that survive will not necessarily be the biggest, but the fastest to adapt.<\/p>\n
The mood was pragmatic rather than gloomy. There was frustration – particularly around government policy and rising regulatory burdens \u2013 but also confidence that Yorkshire\u2019s food and drink sector retains a deep resilience, strong brands and an instinct to innovate.<\/p>\n
What emerged was a picture of an industry being reshaped in real time.<\/p>\n
One where AI is moving from novelty to operational necessity. Where premium brands are proving surprisingly robust. Where labour shortages are forcing employers to rethink culture and retention. And where collaboration across the supply chain may determine which businesses flourish in the next decade.<\/p>\n
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Few summed it up more than Richard Bradbury, managing director of sixth generation family-owned brewer Theakston. \u201cI think what I’ve come to realise over the last 12 months is this level of uncertainty and crisis is the new normal.\u201d<\/p>\n
It landed with the room because nobody disagreed.<\/p>\n
For decades, food manufacturers operated in an environment where disruption was largely episodic. Costs moved, but gradually. Consumer behaviour shifted, but predictably. Planning cycles made sense. Now, shocks arrive one after another.<\/p>\n
Energy spikes. Climate pressures. Cocoa price surges. Shipping disruption. Labour shortages. New environmental rules. Geopolitical instability. The pressure is constant.<\/p>\n
For Graham Wilkinson, group agriculture director at Sofina Foods, that uncertainty is filtering right through the supply chain.<\/p>\n
\u201cI would say that is extremely challenging at this moment in time\u2026 there is a level of uncertainty and concern is definitely high, and that obviously then impacts throughout the whole of the supply chain.\u201d<\/p>\n
Farmers, he argued, are being asked to invest heavily while operating with limited long\u2011term visibility.<\/p>\n
\u201cSome of these farmers, they’re looking at 15-year return on investment. It’s a lot longer than other businesses.\u201d<\/p>\n
The challenge is intensified by policy shifts and growing sustainability expectations. Food businesses are simultaneously being told to decarbonise, automate, increase productivity and absorb higher operating costs \u2013 all while consumers remain price sensitive.<\/p>\n
It has fundamentally changed the leadership mindset.<\/p>\n
Bradbury argued the industry needs to stop treating crises as temporary interruptions.<\/p>\n
\u201cYou\u2019ve got to stop feeling sorry for yourself and stop viewing every challenge as a short-term crisis,\u201d he said. \u201cInstead, businesses need to work out how they not only survive the current environment but build the resilience to withstand the next series of external shocks – because they are coming.\u201d<\/p>\n
That shift from firefighting to permanent resilience came up repeatedly. Covid, several leaders suggested, was not the defining crisis. It was training.<\/p>\n
Andrew Keeble, whose premium pork brand Heck now sits on shelves across most major retailers, said surviving the pandemic left businesses leaner and tougher.<\/p>\n
\u201cI think Covid was the warmup act for what is going on now. I think as a business, if you survived Covid, you are in quite good shape.\u201d<\/p>\n
The mentality now is brutally simple: focus on what you can control. For Keeble, that means quality, efficiency and brand.<\/p>\n
\u201cOur philosophy is that you can charge more for great tasting in food and an amazing brand.\u201d<\/p>\n
That premium positioning has become increasingly important as inflation reshapes buying behaviour. One of the strongest themes from the discussion was that consumers have not abandoned premium products. They have simply become more selective.<\/p>\n
The businesses performing best are those delivering what executives repeatedly described as \u2018affordable treats\u2019 \u2013 products consumers still justify despite economic pressure.<\/p>\n
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Josh Lee, founder of Leeds-based ice cream brand Northern Bloc, has built the business around exactly that logic.<\/p>\n
\u201cWe intentionally stepped back from retail because it wasn\u2019t allowing the business to fully focus on a single channel. That decision paid off – we grew 60% last year.\u201d<\/p>\n
The decision to sharpen focus rather than chase volume reflects a wider trend across the sector. Growth is increasingly coming from clarity. Brands with a distinct identity and loyal customer base are proving more resilient than businesses competing purely on price.<\/p>\n
Lee believes indulgence still matters. \u201cIce cream is quite a recession proof product.\u201d<\/p>\n
Bradbury sees the same dynamic in beer. \u201cGenerally, we’ve seen our premium product be far more resilient. Old Peculiar, for example, has performed exceptionally well.\u201d<\/p>\n
That resilience matters because margins across the industry remain under sustained pressure. Rising wage costs, energy bills, packaging costs and regulatory compliance are forcing businesses to chase productivity gains wherever possible.<\/p>\n
And increasingly, that means automation and AI. If food manufacturing once lagged behind tech sectors in digital adoption, that gap is closing rapidly.<\/p>\n
The conversation around AI was notably practical. Nobody was talking about gimmicks.<\/p>\n
They were talking about fuel efficiency, customer analytics, route optimisation, forecasting and operational savings.<\/p>\n
Keeble has gone further than most by appointing a dedicated head of AI. \u201cWe’re investing huge amounts now in efficiency\u2026 we’re automating everything we can do.\u201d<\/p>\n
His business is already using AI tools across customer data analysis and brand development.<\/p>\n
Others around the table shared the sense that businesses must experiment without losing control. Tom Mathew, who leads food and drink supplier Dunsters Farm, has created internal AI champions tasked with testing tools safely.<\/p>\n
\u201cIt’s about balancing safety with not being left behind.\u201d For him, technology investment is directly tied to competitiveness. \u201cWe need to invest in the technology to bring down our fuel usage more than the cost is going up, because that’s how we stay competitive.\u201d<\/p>\n
That mentality is increasingly widespread. Automation is no longer a future ambition. It is becoming a survival mechanism.<\/p>\n
Lee is automating parts of Northern Bloc\u2019s production line. Mathew is investing in telematics and route optimisation. Keeble is expanding data capabilities.<\/p>\n
Even businesses constrained by historic sites are adapting where possible. Theakston\u2019s Victorian brewery presents obvious physical limitations.<\/p>\n
\u201cAutomation in general is quite tricky,\u201d Bradbury admitted. But he still sees huge opportunity in analytics.<\/p>\n
That democratisation of technology may prove one of the biggest structural shifts in the sector. Smaller businesses can now access capabilities once reserved for global operators.<\/p>\n
The question is no longer whether businesses adopt AI. It is how quickly.<\/p>\n
If there was one issue that generated near universal irritation, it was regulation. Not necessarily individual policies in isolation. But the relentless accumulation of compliance, reporting and administrative burden layered onto already stretched businesses.<\/p>\n
Brexit paperwork. Environmental rules. Packaging reform. Energy policy. Employment legislation. Tax scrutiny.<\/p>\n
Each on its own may be manageable. Together, leaders argued, they are pulling management focus away from growth.<\/p>\n
Bradbury warned the cumulative effect is particularly damaging for SMEs. \u201cSmall and medium sized businesses don’t have dedicated departments just to focus on that type of thing.\u201d<\/p>\n
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Chloe Ellis, tax specialist at Forvis Mazars said she is seeing growing concern among clients over increasing HMRC scrutiny, particularly around R&D claims.<\/p>\n
\u201cWe are seeing HMRC opening inquiries on R&D claims that perhaps should not be open, and that makes people more nervous,\u201d she said. \u201cAt times it feels like a sledgehammer to crack a nut.\u201d<\/p>\n
Her comments struck a chord around the table.<\/p>\n
For many businesses, R&D tax relief has long been viewed as an important incentive to invest and innovate. Now, several leaders argued that the growing compliance burden is causing some companies to question whether claiming is worth the time and effort involved.<\/p>\n
But Chloe was equally clear that businesses should not walk away from the support available. \u201cR&D relief that can bring your corporation tax down to nil,\u201d she said. \u201cIt can actually create refunds.\u201d<\/p>\n
She also highlighted the continuing value of Patent Box incentives. \u201cThe Patent Box regime takes your effective tax rate down to 10%.\u201d<\/p>\n
Her central point was that the reliefs remain highly valuable – but businesses should expect scrutiny to intensify as pressure grows on public finances.<\/p>\n
\u201cThey can\u2019t raise every tax, but they do need to raise revenues,\u201d she said. \u201cSo how are they going to do that? With more scrutiny.\u201d<\/p>\n
It is a tension many businesses increasingly recognise. Government wants investment, productivity and innovation. But companies say the practical burden of accessing support is becoming harder to justify.<\/p>\n
Labour shortages remain a challenge across food and drink, but the discussion revealed a more nuanced problem than simple recruitment gaps.<\/p>\n
The sector is competing against changing expectations around flexibility, culture and wellbeing.<\/p>\n
Della McDonald, group head of commercial operations at Bradford\u2011based Dalesman Group, said candidate expectations have shifted dramatically.<\/p>\n
\u201cThere are definitely many candidates out there, but they could have higher expectations particularly if they’ve come from a workplace that offers really great, flexible working policies.\u201d<\/p>\n
For SMEs, that creates tension. \u201cWe’ve had recently roles come up and the applicants wanted to work from home for the full working week, but it’s not practical for an SME.\u201d<\/p>\n
Retention, she argued, has become just as important as recruitment. \u201cWe’ve started investing in succession planning for the future.\u201d<\/p>\n
Long\u2011term workforce development is becoming increasingly strategic because churn damages continuity. \u201cIf you’re working on a five-year strategy and you’ve got people leaving every two to three years, it can stall that progress.\u201d<\/p>\n
Technical roles remain particularly difficult.<\/p>\n
Wilkinson warned food manufacturing still suffers from outdated perceptions. \u201cI believe that we have more trained engineers than before. But they’re not just\u2026 choosing the food industry.\u201d<\/p>\n
Mathew agreed the industry has failed to properly sell itself. \u201cI don’t think they realise there’s AI experts within the business, or engineers.\u201d<\/p>\n
What emerged strongly was that businesses are increasingly competing on culture as much as pay. Benefits once considered peripheral are now central to retention.<\/p>\n
Keeble shared that at Heck, they offer staff a free a free canteen every day. In a labour market where loyalty is harder to secure, those details increasingly matter.<\/p>\n
Despite the relentless headwinds, one message from the finance side of the table was surprisingly upbeat.<\/p>\n
Food and drink remain highly attractive to investors.<\/p>\n
Alex Baskeyfield, corporate finance partner at Forvis Mazars, said private equity appetite for the sector remains strong.<\/p>\n
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\u201cFood and drink is one of the sectors that’s really sought after by private equity at the moment.\u201d<\/p>\n
That may sound counterintuitive given the pressures facing the industry. But Baskeyfield argued resilience is exactly what makes the sector attractive. \u201cDespite all those headwinds, the industry continues to do pretty well.\u201d<\/p>\n
Strong regional brands continue to draw interest, particularly those with national growth potential. Recent Yorkshire transactions underline that appetite.<\/p>\n
Baskeyfield said investor appetite for food and drink businesses remains remarkably robust despite the sustained economic pressure facing the sector.<\/p>\n
\u201cFood and drink is actually one of the sectors that\u2019s really sought after by private equity at the moment,\u201d he said.<\/p>\n
Part of that, he argued, comes down to resilience. \u201cDespite all those headwinds, the industry continues to do pretty well,\u201d he said. \u201cIt\u2019s a sector people still have confidence in because demand doesn\u2019t disappear. Businesses adapt.\u201d<\/p>\n
He said investors are particularly attracted to brands with a clear identity, strong customer loyalty and room for national growth.<\/p>\n
\u201cThere\u2019s still a lot of capital looking for good businesses with strong management teams and a clear proposition,\u201d he said. \u201cYorkshire has a lot of those businesses.\u201d<\/p>\n
But Baskeyfield acknowledged that the current environment has created tension between investor expectations and operational reality.<\/p>\n
\u201cThe kind of typical private equity cycle is a seven-year cycle,\u201d he said. \u201cThat can become challenging when businesses are dealing with multiple external shocks in a relatively short space of time.\u201d<\/p>\n
He said investors are increasingly placing greater emphasis on operational resilience and management quality, rather than growth alone.<\/p>\n
\u201cFive years ago, people were probably more focused on pure growth metrics,\u201d he said. \u201cNow there\u2019s much more focus on how management teams respond under pressure, how robust supply chains are and whether businesses can protect margin.\u201d<\/p>\n
As the discussion closed, the tone shifted from challenge to opportunity. Because despite everything \u2013 the shocks, the costs, the uncertainty \u2013 there was clear belief that Yorkshire remains uniquely positioned.<\/p>\n
The region has farms. Manufacturers. Global brands. Universities. Logistics expertise. Heritage. Innovation.<\/p>\n
Wilkinson said deeper collaboration across the supply chain will become increasingly important if the sector is to navigate continued volatility.<\/p>\n
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\u201cThe Yorkshire region has fantastic farms, fantastic retail and fantastic education facilities. Everything is there,\u201d he said. \u201cThe opportunity is joining that up more effectively.\u201d<\/p>\n
Wilkinson argued that more long-term thinking is needed between retailers, manufacturers and producers, particularly as farmers face growing pressure to invest in sustainability and productivity improvements.<\/p>\n
\u201cWe can\u2019t keep operating on very short-term thinking when some of these investments are 10, 15 years for farmers,\u201d he said. \u201cThere has to be more shared responsibility across the supply chain.\u201d<\/p>\n
He pointed to Sofina\u2019s Connect programme as an example of a more collaborative approach, designed to strengthen longer-term relationships between retailers and producers.<\/p>\n
\u201cIt\u2019s about retailers investing in farms, supporting farmers and creating partnerships that are sustainable for everybody involved,\u201d he said.<\/p>\n
Wilkinson also warned that resilience across the sector depends on maintaining a strong domestic supply base.<\/p>\n
\u201cIf we want food security and high standards, then we have to support the people producing the food,\u201d he said. \u201cThat means collaboration, not just transactions.\u201d<\/p>\n
He believes Yorkshire is particularly well placed to lead that shift because of the breadth of the region\u2019s food and drink ecosystem.<\/p>\n
\u201cThere\u2019s huge expertise in Yorkshire,\u201d he said. \u201cAgriculture, manufacturing, logistics, innovation \u2014 it\u2019s all here. We should be using that collective strength more.\u201d<\/p>\n
And perhaps that was the strongest conclusion from the entire conversation.<\/p>\n
The businesses adapting best are the ones thinking longer term – building stronger relationships, investing with greater patience, and focusing on resilience rather than short-term wins.<\/p>\n
Because around those tables, there\u2019s little belief that stability is suddenly about to return. Most expect the shocks to keep coming, policy to keep shifting, costs to keep rising, and consumer behaviour to continue evolving.<\/p>\n
Yet Yorkshire\u2019s food and drink sector has spent the last decade being stress-tested harder than almost any other part of the economy, and it is still standing. Bruised, certainly. Frustrated, often. But still innovating.<\/p>\n
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