SWA launches wholesale fund to boost local Scottish produce

A new Scottish Wholesale Local Food and Drink Growth Fund has been launched by the Scottish Wholesale Association (SWA) as it seeks to further support wholesalers and food producers to increase the volume of local Scottish produce being sold through wholesale channels.

SWA has secured £195,000 from the Scottish Government to deliver the initiative and will provide match funding of up to £10,000 per business for wholesalers whose applications to the new fund are successful.

The Scottish Wholesale Local Food and Drink Growth Fund sets out to increase the turnover of Scottish produce sold through Scottish wholesalers to 35% of baseline sales and it represents the third phase of the groundbreaking Delivering Growth Through Wholesale (DGTW) local sourcing programme launched by SWA in 2021.

DGTW, which aims to educate and engage with producers on the opportunities provided by the wholesale sector, was designed in collaboration with SAOS and Scotland Food & Drink, and is supported by the Scottish Government.

To date, the programme has delivered over 230 new Scottish product listings via new wholesale partnerships, leading to a substantial increase in new sales through wholesale.

The Scottish Wholesale Local Food and Drink Growth Fund is open to food and drink wholesalers who sell into the Scottish retail, hospitality and leisure sectors, licensed on-trade and the public sector, and who have premises and employees based in Scotland.

If a producer has completed the Delivering Growth Through Wholesale training programme, this will be taken into consideration when awarding funds. Similarly, if the wholesaler has trained Wholesale Local Food Champions in their business, this will be taken into account.

The Wholesale Local Food Champion training is free to employees within Scotland’s wholesale sector and is an extension of the DGTW producer initiative, providing individuals within wholesale businesses with the knowledge they need to take responsibility for shaping their company’s local sourcing strategy. In becoming a Champion, they are taking an active role in creating a strong and sustainable local food and drink supply chain.

Financial support from the Scottish Wholesale Local Food and Drink Growth Fund can be used for a range of purposes, from helping businesses resource their capability to become a “local sourcing” wholesaler to creating a local sourcing strategy and monitoring processes. Successful applicants might also consider training and/or financing a local/regional sourcing buyer and putting funding towards creating joint business plans with producers.

Colin Smith, SWA chief executive commented, “We are delighted to have secured this funding from the Scottish Government – it recognises the role that wholesale must play regarding support for local producers and demonstrates confidences in our DGTW programme which is gaining momentum and striking a chord with both wholesalers and producers.

“Already we are seeing a positive impact across the food and drink sector since its launch in 2021 and we are keen to move forward with this latest third phase of the project which will provide direct financial support for wholesalers as we strive to further strengthen the Scottish food and drink supply chain.”

Smith added that while the aim of the new fund is to help promote a sustainable and prosperous food and drink wholesale industry in Scotland, as well as helping economic recovery for manufacturers and producers post-Covid in line with the aims of Scotland's Food and Drink Industry Strategy, it also contributes towards the Scottish Government's vision to become a Good Food Nation and its Local Food Strategy.

“Investment in wholesale is not just about gaining more listings of ‘local’ products but about strengthening Scotland’s local supply chains,” he noted. “This gives local producers national opportunities and provides the public sector with a greater opportunity to support local producers.

“Increasing local choice and availability helps underpin a strong wholesale supply chain for producers and manufacturers of all sizes, across the whole of the UK. It is also about reducing food miles and supporting Scotland to become more self-sufficient in where our food is grown.”

Cabinet Secretary for Rural Affairs, Land Reform and Islands, Mairi Gougeon, said: “Scottish producers make some of the finest food and drink in the world and we believe people everywhere should have access to this produce.

“The Scottish Wholesale Local Food and Drink Growth Fund will support this mission by helping our dedicated wholesalers to source even more high-quality local produce for customers across Scotland.

“Supporting projects like this, that help improve the availability of locally sourced, healthy food, is part of this government’s wider effort to make Scotland a Good Food Nation.”

The Scottish Wholesale Local Food and Drink Growth Fund will be managed by SWA, which has a proven record in delivering Scottish Government financial support to businesses through previous involvement in the Scottish Wholesale Food & Drink Resilience Fund. The fund opens on for applications on 13 August and closes on 6 September. Wholesalers can apply for the funding here. https://www.scottishwholesale.co.uk/growth-fund/