As consumers become more aware of the impact of climate change, they are demanding more sustainable food and drink products.
They want food that is natural and free of artificial additives and preservatives.
Consequently, the demand for healthy and sustainable food and drink is set to grow in the next few years.
Wholesale Manager spoke to Jim Rowan, managing director of Dunns Food and Drinks about how the company is making its business more sustainable and how the hospitality industry can prepare for Scotland’s new deposit return scheme.
What are the top food and drink trends of 2023?
Customers are increasingly looking for sustainable food and drink options that have a positive impact on the environment. This trend is being driven by several factors, including the rise of climate change awareness and the growing demand for transparency in the food industry.
There is growing interest in low- and no-alcohol drinks, driven by the health benefits of consuming less alcohol, as well as the desire to enjoy the taste of cocktails without the alcohol content. We offer a diverse no-alcohol range for our customers from Thatcher Zero Alcohol Free Cider to Brewgooder Alcohol Free Beer to McGuigan Alcohol Free Chardonnay.
Global flavours, such as Peruvian, Sri Lankan, and Pan-African cuisine, are increasingly popular. This trend is being driven by the increasing popularity of travel and the desire to experience new cultures through food.
Is there an increase in demand for products that are healthy and sustainable?
People are becoming more aware of the importance of eating healthy foods and living a healthy lifestyle. This is leading to an increased demand for products that are made with natural ingredients and that are free of artificial additives and preservatives.
Given the ageing population, older people are more likely to be concerned about their health and the environment. This is leading to an increased demand for healthy and sustainable products among older consumers. People are also becoming more concerned about the environmental impact of their choices. This is leading to an increased demand for products that are made with sustainable materials and that have a lower carbon footprint.
As a result of these factors, the demand for healthy and sustainable products is expected to continue to grow in the years to come. This is a trend that businesses should be aware of, as it presents an opportunity to tap into a growing market.
What sustainable menu swaps can foodservice operators make?
Local and seasonal ingredients have a lower carbon footprint than ingredients that are shipped long distances. They are also often fresher and tastier. Mrs Tilly’s, The Handmade Shortbread Co, PK Foods and Charles Macleod are just a few of the many local Scottish suppliers that we work with.
Switching to sustainable packaging made from materials that are recyclable, compostable, or biodegradable is a simple way to reduce your environmental impact and help protect the planet.
Operators can also take responsibility to educate their customers, letting them know about the benefits of eating sustainably and how they can make a difference.
How is Dunns making its business more sustainable?
We have recently invested £1.5 million in a range of sustainability measures to support our long-term net zero ambitions.
These include a £1m energy-efficient CO2 freezer, solar panels and LED lights with motion sensors and trialling electric vans as part of the Scottish Wholesale Association’s decarbonising wholesale project.
How will Scotland’s new deposit return scheme affect the hospitality industry?
Hospitality businesses, like restaurants, bars, cafes and hotels sell millions of bottles and cans each year.
Businesses that sell drinks to take away (cafés and takeaways) and those that sell drinks to be consumed on-site only (pubs and restaurants) will have different obligations.
If you sell any drinks for off-site consumption, you will have to charge the deposit to your customers on those drinks and operate a return point.
If you sell drinks for consumption on-site, for example in a bar or restaurant, you can choose whether to charge the 20p deposit or not. This is because the container is not expected to leave the premises.
If you sell only drinks for consumption on-site, you don’t have to operate as a general return point for scheme containers.
You will have to return the containers you’ve sold on-site to the scheme administrator for recycling. As such, you’ll pay the 20p container deposit to the retailer or wholesaler, which you get back from the scheme administrator when you return the containers.
Businesses selling drinks to be consumed on-site that do not apply a deposit will not be expected to receive returns from outside their own business.
However, if you sell any in-scope drinks to be taken away, you will be required to charge a deposit and operate a return point.
How can the hospitality industry prepare for DRS?
To get ready for DRS, you could already be thinking about how you reduce the number of containers from your offering. From eco-spirits initiatives to our own bag-in-box post-mix soft drinks to draught/kegged beers, we can support you with a variety of solutions.
Where possible, try to plan and make your life simpler – like a switch in solutions to sustainable spirits. ecoSPIRITS is the world’s first low carbon, low waste spirits distribution technology. They use an innovative closed-loop distribution system that nearly eliminates packaging waste in the premium spirits supply chain. It is a massive win for sustainability in their business – and potentially yours too.
At Dunns, we now have two of their collaborations in the 4.5L format – Avallen Calvados, a brandy that is the world-first “planet positive spirit”, and also London’s Portobello Road Gin.
On a similar note, we also have two 2.8L eco-Pouch products from The Sustainable Spirit Co. in the form of Element 29 vodka and Boxer Gin.
What are Dunns’ growth targets?
We have recently announced ambitious growth targets ahead of our 150th anniversary, targeting turnover of £50m by 2025. Last year, we achieved a turnover of £37.5m, and forecasting a £43m turnover this year.
Now, to achieve its 16 per cent growth target in two years’ time, we are set to double down on food and increase its coverage across Scotland, with Aberdeen and its surrounding areas a particular focus.
Are there plans to extend Dunns’ geographical reach?
We are very proud of our history, but also very excited for our future. While we’ll continue to double down and invest in providing our customers, many of whom have been with us for generations, we are also focused on expanding our reach in several key areas, particularly in and around Aberdeen where we see huge opportunity for an independent Scottish wholesaler.
Is Dunns expanding its team?
We have recently made several key senior hires, including Linda Queen as customer service manager, Mhairi Shaw Hawkins as drinks stock controller and category buyer, and Rosalind Gibson as group marketing manager. David Prow has been appointed as commercial director of Dunns Food and Drinks’ Alexander Wines division, which is headed up by new MD Nathan Rowan.
We also plan to further expand our team of 116 to more than 130, with a major focus on its sales and buying departments.
How is Dunns increasing gender equality and diversity?
We appointed our first ever female transport manager, Taylor Jeffrey, who joined as a trainee admin assistant straight from school when she was 16 and is now in charge of Dunns’ biggest department, looking after the distribution team and the fleet.
Traditionally, this has been a very male dominated industry. We are invested in providing opportunities that will increase gender equality and diversity. We also plan to continue to create opportunities for our team members to grow within the organisation.
I’m extremely proud that this company, which has been in our family for 150 years, continues to have such a positive impact on Scotland’s hospitality sector and for the local community in Blantyre by providing jobs. The steps we’re taking now are to ensure Dunns continues to have this positive impact for the next 150 years.
How has your business and the industry in general changed in the last few years?
Over the last 148 years, with some key acquisitions, we have levelled up our drinks offering, while we also have major plans to continue to invest in our team, technology, sustainability, and distribution.
Scotland continues to have a strong appetite for great food and drink. We hope we’ve played a small part in that by continuing to offer the very best products as efficiently and cost-effectively as possible.
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