Organisations representing the UK’s food and farming sector today issued a joint appeal to the prime minister asking him to implement as a matter of urgency a Covid recovery visa to alleviate crippling labour shortages across the supply chain.
In an open letter to Boris Johnson, 12 organisations have also called for a permanent, revised and expanded Seasonal Worker Scheme for UK horticulture and an urgent review by the Migration Advisory Committee (MAC) on the impact of ending free movement on the food and farming sector.
The growing shortage of food production and distribution workers, including HGV drivers, has resulted in empty shelves in shops and in some cases food has been left on farms unable to be picked up or processed.
“The food and farming sector remains on a knife edge due to the unprecedented shortages of workers across the entire supply chain. The industry came together in the summer to evidence these challenges, and the final report showed that there are an estimated 500,000 unfilled vacancies across the industry,” the letter says.
The organizations warned that the situation is not improving, adding that there is a substantial threat of food inflation directly impacting the poorest families ahead of Christmas.
“People can see the empty shelves in shops, and in the restaurants, the food they want isn’t available,” said FWD chief executive James Bielby.
“Panic-buying, food price inflation and product unavailability will get worse without immediate and effective action from the government. We’re calling on the prime minister to personally intervene to save Christmas.”
Small Business Minister Paul Scully, however, said offering visas to overseas drivers would not solve the problem because shortages were being felt across Europe, and the government was looking to more domestic options instead, including luring former employees back to the market.
“There are hundreds of thousands of people in the country that have HGV licences, either full or partial, that are not working at the moment,” he said. “How we can encourage them back, how we can increase the number of tests to get more people through the system which has been delayed because of the pandemic.”
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.
A test purchasing operation conducted by Japan Tobacco International (JTI) in Nottingham has uncovered the shocking scale of the illicit tobacco and vapes market in the city.
Undercover operatives carried out multiple test purchases across Nottingham in November 2024, visiting 17 stores and finding 25 illicit tobacco and vapes. Counterfeit and contraband tobacco products were easily obtained from stores, including 50g Roll Your Own (RYO) packets from as little as £5.00, and ready-made cigarettes (RMC) from £4.00. Illegal vapes with puff counts of up to 22,000 were also discovered.
All evidence and information gathered has been made available to Trading Standards in anticipation that it will support their efforts to enforce and prosecute anyone found to be selling illegal products.
“This undercover operation in Nottingham offers up more evidence of the burgeoning illicit tobacco market in the UK," said Ian Howell, Public Affairs Manager at JTI UK. "Last year the illicit sector grew to unprecedented levels – 30 per cent of cigarette and 54 per cent of roll your own tobacco consumption now comes from illegal and other non-duty paid sources. We’re unfortunately in a position where illicit tobacco is common in every town and city across the country.
“This illegal market is causing major disruption to retailers, reducing footfall in their stores and impacting on their incomes. In addition, there are strong links between the illicit tobacco trade and organised crime.
"The fast expansion of this market has been facilitated by years of increasing tobacco duties as well as a lack of adequate budget and authority for enforcement organisations. The government needs to acknowledge the scale of the problem, and to crack down on illicit tobacco sales as a priority in 2025, rather than implementing a generational smoking ban which will simply allow the black market to flourish.”
The operation revealed that the typical price for a 50g pack of counterfeit roll your own tobacco (RYO) was £5.00, with the operatives’ most expensive purchase being £7.00. For comparison, the recommended retail price of JTI’s lowest price 50g RYO product is £36.50*.
If retailers know of a store that is selling illicit tobacco or vapes, they should report them by calling Trading Standards through the Citizen Advice consumer helpline on 0808 223 1133 or contact HM Revenue & Customs’ Fraud Hotline (0800 788 887), or Crimestoppers (0800 555 111).
Philip Morris Limited (PML), the affiliate of Philip Morris International (PMI) in the UK and Ireland, has appointed Iain Levy to the role of Head of Field Force.
As the new Head of Field Force, he will be working directly with PML’s customers in the convenience and vape channels, developing a pipeline of dedicated retail activations that support the channels consumer needs, particularly in the face of the upcoming Tobacco and Vapes legislation.
Iain began his journey at PML as a Regional Area Manager in 2014 and most recently National Vape Manager. His expertise saw him rise to the position of Commercial Manager for Ireland, before moving back to the UK, where he successfully expanded the market’s multi-category portfolio of smoke-free alternatives, replacing cigarettes with breakthrough alternatives, like IQOS, the UK’s number one heat-not-burn system.
Prior to PML, Iain held senior positions at Coca-Cola Enterprises, Allied Bakeries and Brakes Group. His background in commercial operations makes him well-equipped to drive engagement with trade partners, providing multi-category leadership for retailers embracing the smoke-free future during this critical period for the sector.
Iain assumes the role from Cem Uzundal, who was recently appointed to the position of Head of Commercial Operations EU Region, at PMI.
“The convenience channel has always been close to my heart," said Levy. "As Head of Field Force, driving on-the-ground support and success for retailers will be a vital component in ensuring a strong commercial path for businesses nationally, as well as driving new commercial avenues across our multi-category smoke-free portfolio.
“We remain committed to our valued retail partners and aim to provide guidance as they seek to evolve their smoke-free offering through this period of increasing regulation.”
With upcoming regulatory changes – the disposable vape ban and Tobacco and Vapes Bill – this year marks a pivotal moment for the category. Iain’s appointment reinforces PMI’s commitment to providing hands-on support to retailers, ensuring they remain equipped to meet consumer demand and drive sustainable growth in a rapidly shifting market.
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The Windsor Mini mart which was looted during a violent protest, following a vigil for the victims of the knife attack, is pictured in Southport.
More than one in four UK businesses were impacted by civil unrest last year, with nearly two thirds citing a continuation of the problem as a major concern for 2025.
The research was conducted by global risk management and insurance broking firm Gallagher in January 2025 among over 500 UK business decision-makers at firms of all sizes and gauged the effect of civil unrest during 2024, including protests, vandalism, looting and riots.
The damage reported by business leaders came in several different forms, as nearly half (47 per cent) of impacted firms reported that they had to close their premises, 44 per cent said their premises were damaged and 40 per cent said either stock or equipment was damaged or stolen.
Protests and riots were rife in the UK in 2024, with the vast majority taking place in England.
According to ACLED data collated by Gallagher’s crisis management team nearly 1000 protests took place, equivalent of just short of 20 events per week, with subjects such as climate change, politics and immigration driving protesters to the streets.
Of particular note were the riots that followed a multiple stabbing incident in Southport with demonstrations subsequently taking place in 27 towns and cities between 30 July and 7 August.
Insured losses from these events are estimated at £250 million3 and millions more has been claimed from the public purse in compensation payments. However these figures are the tip of the iceberg for firms impacted by loss of trade and uninsured losses, plus the cost of policing which is paid for by all UK council taxpayers.
Thousands of people were arrested and hundreds have subsequently been imprisoned for their part in the disturbances.
Many businesses have taken measures to prepare for the effects of future trouble – regardless of whether they were impacted in 2024.
More than one in three (35 per cent) have increased security; one in four (28 per cent) have taken action to evaluate the risks they are facing and a similar number (25 per cent) have reviewed their insurance to ensure they are covered in the event of damage or disruption.
The research also looked at anti-social behaviour with business leaders more likely to be concerned about risks from anti-social behaviour on their trading than terrorism risks (32 per cent v 30 per cent).
Of the firms affected by anti-social behaviour, 41 per cent said their firm had experienced a theft, 38 per cent had been subject to threatening behaviour and 36 per cent said vandalism had caused a problem.
Theft from retailers has surged, with shoplifting rising by a third in the 12 months to June 2024, according to the ONS, leading to many retailers to review how they combat this behaviour.
Jonathan Rae, Director of Crisis Management at Gallagher said, “It is clear that all kinds of civil unrest in the UK is a problem and is weighing heavily on the minds of business leaders.
"With many of the underlying conditions cited by business leaders still present in the UK, from inflationary pressures to societal division, it is no surprise UK businesses are concerned about another year of anti-social behaviour, and many making plans to protect themselves against its impact.
“Businesses of all types are exposed to civil unrest, and having the right insurance is key to mitigating the impact and any financial losses.
UK business leaders should work with an experienced crisis resilience risk adviser who can provide advice and guidance on what insurance is needed to cover different exposures.
As well as insuring damage to properties and having the right business interruption cover if firms are unable to trade, businesses should also consider crisis resilience insurance which includes a wide range of cover including risk management advice, access to emergency funds, employee awareness training, 24/7 response consultants, liaison with the authorities and business recovery advice.”
Red Bull and Monster Energy have contributed the greatest amount of unit growth in the independent convenience channel in 2024, shows a TWC report released today (18), highlighting many other key trends that shaped the independent convenience channel last year.
Value sales were down -6 per cent through 2024 majorly owing to drop in sales of tobacco products though value growth was seen in confectionery, soft drinks and food-to-go, states the report.
Alcohol sales under-performed at Christmas while branded products outperformed own-label sales in the convenience channel.
The source data comes from TWC’s ‘SmartView Convenience’ (SVC) market read, which is already recognised as the most reflective read for independent convenience stores, despite launching just 18 months ago.
SVC is a market read for the independent convenience sector, comprising EPOS sales data from a sample of 5,000 stores reflective of the market structure including both unaffiliated independents and wholesaler-supplier symbol fascias, including Booker’s Premier and Londis; Bestway’s Best One and Costcutter; Nisa; and the Unitas fascias.
Data is extrapolated to represent the entire GB independent market (excluding Spar) of around 30,000 stores and is also geographically representative.
After reviewing SVC data representing over ten billion purchases through 2024, TWC was able to share key trends with over one hundred industry executives (wholesalers and suppliers) via a webinar last week.
The key trends are:
Value sales were down -6 per cent through 2024 (52 w/e 29.12.24) but this was driven by declines in tobacco / tobacco alternatives and commission – when these departments are removed, sales fell -2 per cent across the sector.
Three categories were in value growth in the sector – confectionery, soft drinks and food-to-go.
Average spend per unit has only increased by 1 per cent in 2024.
Alcohol sales under-performed at Christmas (versus the performance over the rest of the year), reflecting the deep promotions offered by other operators (e.g. retail multiples) during December; as well as changing consumer habits and the fact that the comparative period in 2023 included two less trading days on the run up to New Year’s Eve (4 w/e 29.12.23).
Branded products outperformed own-label sales in the sector.
The leading suppliers are winning share. In eight key convenience categories, three quarters of the top two suppliers in each category are growing their share of sales in the channel.
UK convenience store market performance
TWC Group also revealed the top thirty growth brands in the sector through 2024, which have collectively brought in 104 million additional unit sales in 2024.
Red Bull saw the biggest actual unit sales increase in the year, followed by Monster Energy. These thirty brands contributed 46 per cent of total volume sales growth in the sector in 2024.
TWC has identified six core drivers behind brand growth in the channel:
High stimulation beverages
Spicy and sour products
Treats for kids (especially ‘Gen Alpha’)
Good value products (e.g. PMPs)
New product development
Regionality (e.g. products relevant to specific regions)
Regarding NPD, new products from these 30 brands accounted for 12 per cent of all volume sales in the channel in 2024, states TWC report.
Sarah Coleman, Product Director at TWC Group, says there are still plenty of reasons to be positive in this sector.
“Firstly, the number of convenience stores has grown in the last 12 months, to over 50,000 outlets.
The share of total outlets that are independently owned/run is holding firm, which means the number of indie outlets is in growth (by 1200 year on year), according to the Association of Convenience Stores (ACS).”
Coleman continues: “Consumer research previously conducted by TWC Group revealed many untapped opportunities – for example, 40 per cent of consumers who buy beer, lager or cider do not buy these products from their independent convenience store.
"Similar findings were discovered in other categories too. If suppliers and wholesalers can work together and find solutions to appeal to c-store shoppers, there is still plenty of growth to be had in this important route to market channel, as proven by our top 30 growth brands ranking.”
Suppliers and wholesalers can now access location-specific data as an extension to SmartView Convenience.
Coleman highlights that this is potentially a game changer for the sector – TWC is the only data agency who offers location-specific data for up to 12,500 independent convenience stores) and SmartView Convenience (SVC) market read, allowing subscribers to understand both total market performance and to plan targeted activity in the channel from a single source of data.
Furthermore, TWC is launching a consumer, shopper and retailer research proposition to complement the SVC data.
Coleman points out, “Our SmartView Convenience market read reports what is bought, meanwhile consumer/shopper/retailer research will provide compelling why insights, to understand the motives behind why products are purchased, or not.
"As such, TWC really is becoming the ‘one stop shop’ for data combined with insights – ‘the what and the why’ – and we look forward to extending our services further in 2025.”