The Food Foundation’s annual State of the Nation’s Food Industry report, published today, has found that:
Just 5 companies (Haribo, Mars, Mondelez, PepsiCo, Kellog’s) are responsible for over 80 per cent of TV ads for snacks and confectionary aired before the watershed, despite all of them claiming not to advertise to children
Almost a third (30 per cent) of major UK restaurant chains serve main meals where over half of the options are concerningly high in salt
Almost one in five supermarket multibuy offers are on meat and dairy products, with half of these offers on processed meat (10.6 per cent of all offers) despite the known health risks of consuming too much processed meat
Only one in four major UK food businesses has a healthy sales target and discloses data on the healthiness of their sales
Restaurant chains and fast-food outlets are the least transparent sector by some way, having made no progress since last year in disclosing healthy sales data or setting targets to improve the healthiness of menus
Global food giants Mondelez, Mars and Coca-Cola still have no clear explicit board-level accountability for nutrition
Food industry representatives and their trade associations met with Defra ministers a total of 1,377 times between 2020 and 2023. This is over 40 times more meetings than those held between food NGOs and Defra ministers
The report, published annually by The Food Foundation, analyses data across an array of sources to build up a revealing picture of the UK’s food system. The findings show that currently the food environment, from the food being advertised to us, to the food that dominates menus when we eat out, to the price promotions being offered to us in supermarkets, is relentlessly pushing consumers to make unhealthy choices.
The report also shows there is a clear lack of accountability, with food industry giants failing to set targets or report on their company’s health credentials and global food giants Mondelez, Mars and Coca-Cola having no clear explicit board-level accountability for nutrition.
The new Government has committed to raise the healthiest generation of children ever, to halve the gap in healthy life expectancy and to strengthen the economy. There is increasing public awareness that this cannot be done without addressing diets and the availability and affordability of healthy food. Currently obesity and overweight are estimated to contribute to around 40,000 deaths every year and cost the UK economy an estimated £98bn annually. Last month a report from the House of Lords Committee on Food, Diet and Obesity forcefully called for the government to fix the “broken” food system and turn the tide on the public health emergency.
The Food Foundation’s annual report includes data from its Plating Up Progress benchmark which monitors 36 major UK food businesses, covering retailers, the Out of Home sector, wholesalers and manufacturers. The benchmarks looks at which of these businesses are disclosing transparent data on sales, marketing and sourcing and setting targets to support the sales of more healthy and sustainable food.
The Food Foundation found that while the majority of major food businesses have now set targets for and are reporting on reducing Scope 3 emissions, only 1 in 4 major UK food businesses has a healthy sales target and discloses data on the healthiness of their sales. This is likely being driven by the increasing number of corporate reporting directives requiring businesses to publicly disclose data on their environmental impact in comparison to the lack of regulation and absence of reporting directives on the healthiness of portfolios.
While there has been more target setting and disclosure on climate than health, there is still an intention-action gap on environment goals, with over half of businesses assessed either not reporting on progress or seeing emissions rise.
The Food Foundation is calling on the government to introduce mandatory reporting by all large food businesses on both the healthiness and sustainability of their sales. This is crucial for identifying what food is being sold (and ultimately consumed) and pointing to areas for improvement. Setting targets is equally important, serving as a North Star for driving meaningful change within companies. A great deal of progress had been made in aligning on the health metrics for food businesses to report on via the Food Data Transparency Partnership (FDTP) during the last term of government, but this has come to a complete standstill since the election. Labour ought to use the existing mechanisms for health reporting and move swiftly to place it on a mandatory footing.
“This year’s State of the Nation’s Food Industry report demonstrates the huge impact food businesses have in shaping the food we eat – and how the current system is setting us up to fail,” Rebecca Tobi, Senior Business and Investor Engagement Manager, The Food Foundation. “It’s not right that the most affordable, appealing and convenient options are often the unhealthiest ones.
“We urgently need the government to introduce regulation to raise standards and create a level playing field that enables progressive businesses to go further, faster. If we are to have any chance of ensuring the next generation are the healthiest ever - as Labour have pledged - then we simply can’t continue to ignore the major role large food companies are playing in shaping UK diets. We need regulation to ensure proper safeguards are in place to make sure businesses act responsibly, supporting people and planet as well as profit.”
Baroness Walmsley, Chair of the House of Lords Food Diet and Obesity Committee said, “When people are swimming against a tide of availability and advertising of unhealthy food, it is not helpful to tell them to swim harder. This report shows just how far the industry needs to move to support everyone to eat well, and the calls to action repeat many of those in the Lords committee’s report (Recipe for Health; a Plan to fix our broken food system). The government should act now to develop a long term strategy to fix our food system, underpinned by a new legislative framework. Without it, businesses have insufficient incentive to act in the public interest and will continue to cause harm with their relentless promotion of junk food.”
James Toop, Chief Executive of Bite Back added: “All through 2024, we’ve been running the Fuel Us, Don’t Fool Us campaign, and what we keep hearing from the young activists who drive Bite Back is how Big Food is putting profit over their health. Companies are secretive or even misleading about what’s in the junk food they’re marketing, while young people are hit with 15 billion ads online every year. Our research this year shows that the majority of Big Food’s UK sales come from unhealthy products, which has real consequences — one in three Year Six children are at future risk of food related illness. If the new government wants to be on the right side of history and truly create the “healthiest generation of children ever,” they need to tackle this issue head-on and act on the recommendations in the State of the Nation’s Food Industry report.”
Following a disappointing Golden Quarter, retailers had a strong start to the new year, as latest data shows rise in total UK retail sales volumes with a particular considerable rise in food stores sales volume, prompted by more people eating at home.
According to Office for National Statistics (ONS) retail sales figures for January released today (21), retail sales volumes are estimated to have risen by 1.7 per cent in January 2025, following a fall of 0.6 per cent in December 2024.
ONS figures show that food stores sales volumes rose by 5.6 per cent on the month. This is the largest rise since March 2020, putting index levels at their highest since June 2023.
This follows four consecutive falls on the month, ending in December 2024 when index levels were their lowest since April 2013.
Supermarkets, specialist food stores like butchers and bakers, and alcohol and tobacco stores all rose over the month. Retailers suggested that the increase was because of more people eating at home in January.
Non-store retailers' sales volumes rose 2.4 per cent on the month, partially rebounding from a 3.4 per cent fall in December 2024. Retailers in this sector reported post-Christmas sales remaining strong.
Non-food stores – the total of department, clothing, household and other non-food stores – fell 1.3 per cent over the month. Clothing retailers and household goods stores suggested the fall was because of reduced consumer confidence.
Commenting on the figures, Silvia Rindone, EY UK&I Retail Lead states, "January sales figures had a strong start to the new year, with total UK retail sales volumes estimated to have risen by 1.7 per cent month on month.
"Following a disappointing Golden Quarter, where sales struggled to gain momentum, the latest ONS data indicates a more stable foundation for retailers as they move into 2025.
“Food store sales volumes in particular saw robust growth in January 2025, recovering from declines in recent months. However, it is important to note that, more broadly, sales volumes fell by 0.6 per cent in the three months leading up to January 2025 compared to the three months ending in October 2024."
The EY ITEM Club Winter forecast predicts consumer spending will grow by 1.6 per cent, an improvement from the 1 per cent growth observed in 2024. However, the weaker-than-expected end to 2024 means retailers need to remain vigilant in their strategies, Rindone added.
“While macro trends such as growing consumer income in real terms and lower interest rates are positive news, the benefits are not being felt evenly across the retail landscape.
"Overall growth in the retail sector remains sluggish, masking a mix of both strong and poor performers within every retail sub-sector. Performance is highly variable and largely dependent on how well retailers have optimised their customer offerings—both digitally and physically—over recent years.
"Those who have not invested in their propositions are now struggling to find the space to invest further in increasingly challenging conditions."
Rindone calls on retailers to build a broader proposition that goes beyond selling products.
"Designing service offerings that effectively solve customer problems is one example of how they can foster loyalty and drive sales. Additionally, investing in strong brands that drive trust will be crucial for retailers looking to differentiate themselves in a competitive market.
“While January has brought a positive start to the year, the retail sector must remain agile and focused on customer-centric strategies to thrive amidst the anticipated economic challenges ahead.”
Nan from Del Monte: Honoring Britain’s Baking Traditions
Canned fruit brand Del Monte has crowned Pauline Crosby, a 74-year-old grandmother from Norfolk, as the first-ever “Nan from Del Monte.” This campaign revives the iconic “Man from Del Monte” concept with a fresh, modern approach aimed at celebrating and preserving Britain’s baking traditions.
Pauline, a former military policewoman, was selected following a nationwide competition and public vote to identify a figurehead who embodies the spirit of intergenerational cooking and baking. Nominated by her granddaughter, Poppie, Pauline was praised for her role in creating lasting family memories through her recipes. She is also a proud member of the Women’s Institute, a testament to her commitment to the culinary community.
The “Nan from Del Monte” campaign was born from consumer research conducted by Del Monte, revealing that:
39% of Brits view their grandmothers as key culinary influences.
41% recall their fondest baking memories with a grandparent.
74% worry about the loss of family recipes.
Pauline will serve as an ambassador for traditional baking, sharing her treasured recipes and endorsing new Del Monte creations. Her innovative trifle recipe, featuring Del Monte mandarin slices, will be highlighted on the brand’s website, providing inspiration for families to reconnect in the kitchen. Pauline will also receive a year’s supply of Del Monte products and a NutriBullet blender.
“To win the title of ‘Nan from Del Monte’ is such a privilege,” said Crosby. “I think many of us remember the ‘Man from Del Monte’ adverts, which still make me smile. Now, the ‘Nan from Del Monte’ says yes! Baking has always been at the heart of my family, and I feel so proud to know that my recipes and traditions are being celebrated in this way by such an iconic brand. It’s a joy to see the next generation enjoy the dishes I’ve passed down, and I hope this recognition inspires others to keep these precious family traditions alive.”
Thierry Montange, Marketing Director for Europe and Africa at Del Monte, added: “We are thrilled to announce Pauline as our first-ever ‘Nan from Del Monte.’ This campaign was designed to reignite the nation’s passion for traditional baking and ensure cherished family recipes are preserved for future generations. Pauline truly embodies the spirit of this initiative, and her story reminds us of the invaluable role grandparents play in shaping our culinary culture. We hope her win inspires families everywhere to revive their baking heritage and continue creating lasting memories together.”
Consumer confidence in the UK economy has taken another hit, with expectations reaching a new low, states the latest industry data, ringing alarm bells ahead of upcoming hikes scheduled in April on multiple fronts.
While households are also gloomier about their own personal finances, retailers are also facing mounting challenges, with rising operational costs and potential hiring freezes on the horizon.
According to BRC-Opinium data released today (20), consumer expectations over the next three months of the state of the economy worsened to -37 in February, down from -34 in January. This is the fifth consecutive month in which expectations have worsened.
Their personal financial situation dropped to -11 in February, down from -4 in January while their personal spending on retail rose to -5 in February, up from -9 in January.
Their personal spending overall remained at +4 in February, the same as in January and their personal saving remained at -3 in February, the same as in January, shows the BRC data.
Helen Dickinson, Chief Executive of the British Retail Consortium, says, "People’s expectations of the economy reached a new low, having fallen almost 40pts since July 2024.
"Even Gen Z (18-27), the most upbeat generation on the economy and their own finances, saw a drop off in optimism. There was also a widening gender divide in confidence this month, with women more pessimistic than men about both the economy and their own finances by 13 and 17pts respectively.
"With many businesses warning of the impact that April’s employer NIC’s increase will have on hiring, and the rising energy price cap pushing up the cost of domestic bills, it is little surprise that many households are worried.
"And while there was a positive increase in expectations of personal retail spending, this may be largely driven by the expectations of higher prices in the future."
Expectations of higher prices are not unfounded, with two-thirds of retailers saying prices will have to rise as a result of the £7bn in additional costs, including higher employer NICs and a new packaging levy, Dickinson says.
"Almost half of retailers also warned of hiring freezes, with entry-level jobs often among the first to go as they seek any cost efficiencies to help them protect customers from the worst of the rising costs.
"As the Government bill on the future of business rates progresses through Parliament, it is essential that no shop ends up paying more in rates as a result of these reforms, otherwise retailers will face a triple whammy of Budget costs, business rates rises, and new packaging and recycling levies, all of which will filter through to consumer prices.”
Consumers Prioritise Familiar Foods Over New Health Trends, Finds Vypr Report
There is a clear trend among consumers for simple, everyday foods and drinks rather than niche supplements or complex new trends, states a new report, highlighting how retailers have a huge opportunity to cater to these evolving health priorities by providing accessible and affordable options
According to Vypr’s latest Consumer Horizon Report, despite a growing market of specialised health products, consumers are turning to familiar solutions.
When it comes to boosting energy, for example, 38 per cent of consumers choose bananas, 33 per cent opt for energy drinks, and 25 per cent turn to coffee. This stands in stark contrast to emerging ingredients such as guava, yerba mate, and goji berries, which attract the interest of less than 10 per cent of the population.
Ben Davies, founder of Vypr, said, “Consumers are not buying into every new health trend.
"Instead, they’re sticking to tried-and-tested foods and drinks that offer a practical way to meet their needs. This preference for the familiar—such as bananas for energy, chamomile tea for sleep, and nuts for mental wellbeing—demonstrates a shift away from the complex and toward the simple and accessible.”
When it comes to sleep, consumers are also looking to everyday solutions like chamomile tea (18 per cent), lavender oil (17 per cent), and magnesium supplements (16 per cent).
Mental health is another major focus for consumers, with 24 per cent incorporating antioxidant-rich foods like berries and leafy greens into their diets.
Other popular choices include nuts and seeds (21per cent) and coffee (21per cent) for their potential mental health benefits.
At the same time, consumers are making conscious efforts to avoid foods that are perceived as negatively impacting their wellbeing. For example, 25 per cent are reducing their intake of highly processed foods, 19 per cent are cutting back on energy drinks and high-fat foods, and 18 per cent are drinking less alcohol.
“Retailers and manufacturers face a key challenge in meeting these shifting health priorities while ensuring affordability,” said Ben. “Consumers are making health-conscious choices, but they still want products that fit into their everyday lives and budgets.”
The demand for products supporting gut health is also on the rise, with 25 per cent of consumers incorporating beneficial bacteria into their diets, and 60 per cent being open to buying gut health products.
Functional foods are also gaining momentum, with 59 per cent of consumers purchasing functional foods at least once a month—an increase from last year.
As the demand for sleep, mental wellbeing, and energy solutions grows, the grocery sector has an opportunity to cater to these evolving health priorities by providing accessible and affordable options that resonate with consumers’ desire for simplicity and effectiveness.
Vypr’s findings are based on responses from 2,000 people, drawn from a nationally representative sample of its 80,000-strong UK consumer community.
Inflation in the UK accelerated more than expected last month due to higher food costs and transport costs as well as a jump in private school fees.
The latest data, released today (19) by the Office for National Statistics, shows that the consumer prices index (CPI) measure of inflation rose to 3 per cent in the 12 months to January, up from 2.5 per cent in December. Economists had expected inflation to climb to 2.8 per cent in January.
On a monthly basis, CPI fell by 0.1 per cent in January, compared with a 0.6 per cent fall in January 2024.
Food prices rose by 3.3 per cent in January, up from 2 per cent in December.
Meat, bread and cereals, fish, milk, cheese and eggs, chocolate, coffee and tea and juice all became pricier.
Transport costs rose at the fastest annual rate since February 2023 because of air fares and fuel prices, which both fell by less than last year, partially offset by a downward effect from secondhand cars.
Private school fees were another factor, where prices rose by 12.7 per cent on the month but did not change a year ago, after the government decided to impose VAT of 20 per cent on private school fees.
Chancellor, Rachel Reeves, said, "Getting more money in people’s pockets is my number one mission.
"Since the election we’ve seen year on year wages after inflation growing at their fastest rate – worth an extra £1,000 a year on average – but I know that millions of families are still struggling to make ends meet.
"That’s why we’re going further and faster to deliver economic growth. By taking on the blockers to get Britain building again, investing to rebuild our roads, rail and energy infrastructure and ripping up unnecessary regulation, we will kickstart growth, secure well paid jobs and get more pounds in pockets."
The core rate of inflation, which strips out volatile food and energy costs, climbed to 3.7 per cent from 3.2 per cent.