Firms recognising branding benefits

Almost 90% of large Scottish food companies are now capitalising on the international reputation of Scottish produce, up from 71% a year ago.

That is the finding of the Bank of Scotland’s annual food and drink research report.

Donald Macdonald, one of the bank’s agriculture area directors, said that at a time when future food and farming policy is being shaped, it was important to build and promote regional brands.

“They have long-term strategic importance for our region and present opportunities for targeting new markets in the UK and internationally,” he said.

He added that telling a unique story and promoting a product’s geographical point of origin was helping an increasing number of food and farming businesses in Scotland reap the benefits and tap into the trend on the international stage.

He said: “They are mainly looking to do this by using clearer labelling and packaging, with 86% of large companies saying they are increasing spend on retail marketing campaigns to capitalise on provenance.

“This reflects the growing consumer interest in locally-sourced products, organic foods and awareness of ingredients, as spend on origin/ traceability marketing also figures highly, with 71% of large firms now saying they intend to make this a focus.”

Mr Macdonald said the bank’s research had shown the proportion of companies which think Scottish produce has a good reputation internationally has held firm at 96%.

“This should be a clear signal that there is a future in developing existing and new brands based on regional attributes,” he said.

“Scotland has already capitalised on EU ‘Protected Designation of Origin’ and ‘Protected Geographical Indication’ statuses for foods such as Orkney beef and lamb, Shetland lamb, Scotch whisky, Scotch beef and lamb, Stornoway black pudding and Arbroath smokies.

“While the future of these designations is uncertain following the EU referendum, these are already incredibly strong brands in their own right, which bodes well for their future success.”

There is a future in developing existing and new brands based on regional attributes