FOOD & BEVERAGE Transformer installation
J
ames Hampshire looks at the issues facing the industry and at how modern energy management technologies are helping improve business confidence in the drive to automation and decarbonisation.
CONFIDENCE LEADS TO AUTOMATION The food and drink sector is at a low confidence point, with the Food and Drink Federation (FDF) finding that 40 per cent of manufacturing companies are scaling back investment from Q1 2025. That said, over half of the businesses surveyed are prioritising investment in automation to help drive productivity. With production costs increasing, which are hard to pass on to customers, and higher employer National Insurance Contributions, automation is viewed as a means to ensure competitiveness. It’s no wonder then, that the FDF says nearly 60 per cent of SMEs in the sector are investing in plant and equipment. Energy makes up approximately 15 per cent
of costs for food and drink manufacturers, making energy efficiency critical, especially where prices can be volatile. As investment in automation generally leads to higher energy usage, the pressures for energy efficiency is two-fold: maximising returns on investment in plants, and minimising production costs.
PRESSURES ACROSS THE SUPPLY CHAIN 2050 is an ambitious target for a Net Zero economy, but is a legally-binding imperative, putting pressure on the supply chain. Pressures on retailers: Retail is energy-
intensive, from warehousing and logistics to refrigeration and HVAC. UK consumers continue to prioritise sustainability in their purchasing choice, where cost-comparisons
IMPROVED ENERGY MANAGEMENT IN FOOD & DRINK: FOR MORE COMPETITIVE AND
SUSTAINABLE BUSINESS IN AN INCREASINGLY ELECTRIFIED WORLD
By James Hampshire, Principal Engineer, Powerstar
The food and drink sector operates on high volume with low margins. Public perception and the demand for decarbonisation drives market shares, making efficient and sustainable energy vital
allow. More than 60 per cent surveyed consider this more important than they did two years previously, while more than 75 per cent want to see reduced environmental impact across the sector. The pressure for retailers is to reduce Scope 3 emissions, impacting manufacturers and suppliers. Pressures on manufacturers: As the fourth
largest sector in terms of energy consumption, with high-demand processes and production lines, food manufacturers need to address their own Scope 1, 2 and 3 emissions to maintain a competitive position with retailers. Of the big four supermarkets, Tesco has tasked suppliers with demonstrating measurable and transparent sustainability improvements, given that Scope 3 make up 90 per cent of their
28 SEPTEMBER 2025 | FACTORY&HANDLINGSOLUTIONS
emissions. Sainsbury’s and Morrisons are committed to reducing supply chain emissions by 30 per cent by 2030.
STARTING A NET ZERO JOURNEY AND AVOIDING GREENSTALLING Given that nearly 80 per cent of consumers think businesses should be obliged to provide full supply chain transparency, decarbonisation is vital for retailers and manufacturers alike. But the Carbon Trust and the Net Zero Intelligence Unit have flagged the issue of greenstalling, where companies are nervous, given the fear of greenwashing accusations. In a report commissioned by the Institute of
Grocery Distribution (IGD), Catherine David, Executive Director of Behavioural Change and
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