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NEWSLETTER Food & Drink Summer 2019 Glasgow | Edinburgh | Dundee www.macroberts.com

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Page 1: NEWSLETTER Food & Drink · 2019-08-07 · and reducing energy costs. For example, Coca-Cola Enterprises pioneered the technology as early as the early 1990s, and some whisky distilleries

N E W S L E T T E R

Food & DrinkSummer 2019

Glasgow | Edinburgh | Dundeewww.macroberts.com

Page 2: NEWSLETTER Food & Drink · 2019-08-07 · and reducing energy costs. For example, Coca-Cola Enterprises pioneered the technology as early as the early 1990s, and some whisky distilleries

Welcome to the latest edition of MacRoberts’ Food & Drink Newsletter, in which we take a look at developments across the food and drink sector which your business should be aware of.

These days, climate change is rarely far from the headlines and we can all (businesses and consumers alike) do our bit to help reduce the food and drink industry’s impact on the environment – whether that is making more sustainable eating choices or adapting our farming processes through the use of technology, there is so much that can be done, as our team outlines in this edition.

Brexit also continues to dominate the conversation, and it has certainly had an impact on our seasonal workforce – we look at what the Government is doing to reduce the strain on the industry.

Also this month, we caught up with our friends at the Fife-based Wee Tea Company, who gave us an insight into their business, their plans for the future and innovation in the world of Britain’s national drink.

At MacRoberts, we are looking forward to the upcoming awards season and are delighted to be sponsoring the Innovation Awards at both the Scottish Gin Awards in Glasgow on on 10th October and the Highlands & Islands Food & Drink Awards in Inverness on 15th November.

We hope you have enjoyed reading our Food & Drink Newsletter over the past few months and, as always, welcome any feedback or suggestions for future topics. Please do not hesitate to get in touch with our team.

With very best wishes,MacRoberts’ Food & Drink Team

Contact us

Euan DuncanHead of Food & Drink

[email protected] 303 1222

MacRoberts is one of Scotland’s leading law firms with a history and heritage tracing back over 150 years. Through the delivery of high-quality, innovative and practical solutions for clients, along with an impressive ability to adapt to the contemporary commercial landscape, we have maintained a position of leadership and prestige in the Scottish legal sector and beyond.

Our strength comes from our collaborative relationships and connections – we have an extensive network of clients and contacts throughout Scotland, as well as strong links to the wider UK and international markets.

We are more than just lawyers – we are industry experts with unrivalled commitment to the sectors in which our clients operate. In this era of digital revolution and economic difficulty, we have risen to the challenge in the same way we have done for more than 150 years – with sophistication, passion and expertise.

About MacRoberts

Page 3: NEWSLETTER Food & Drink · 2019-08-07 · and reducing energy costs. For example, Coca-Cola Enterprises pioneered the technology as early as the early 1990s, and some whisky distilleries

The organic market has grown in recent years, and with more and more organic produce filling the supermarket shelves it is now no longer considered a niche market.

Organic oats in particular have received attention in recent times – there have been worldwide health concerns about the presence of chemical pesticides in non-organic oats and the consequent damaging health impact that this may have on consumers. Organic oats are seen by many as a “safer option”, with products which contain organic oats, such as organic haggis and organic porridge, gaining prevalence of late.

The new EU Regulation affecting organic oats If your business operates within the market for organic oats, it will need to be aware of Regulation (EU) 2018/848 on Organic Production and Labelling of Organic Products (the “EU Organic Regulation”), which will come into force on 1 January 2021, containing new rules on organic production.

The new rules will affect the production of organic oats, in addition to other types of organic produce and will introduce the following major changes to the current regime:

1. The new system will contain new precautionary measures which must be taken to reduce the risk of accidental contamination by pesticides. Where pesticides are discovered to be present within a product which purports to be “organic”, the product must not be labelled as organic until the matter has been fully investigated;

2. The new system will be a harmonised and simplified regime whereby one set of rules is applicable to the entire EU organic sector;

3. The new rules will be applicable to those outwith the EU who import organic products into the EU;

4. The rules will cover a wider list of products that can be organic certified, such as salt, cork and beeswax; and

5. A new system of group certification will be introduced, meaning that it will be less complex for small farmers to change to organic farming – this is because certification costs and the levels of inspection required will be reduced, consequently reducing the administrative burden.

Anticipated effect of the new rules Martin Häusling, rapporteur for the European Parliament Committee on Agriculture and Rural Development, has commented that: “The most important point is, we are giving certainty to producers and more clarity to the sector and we have a more harmonised approach across the European Union.” Therefore, there will be greater certainty for all involved in the organic oats market and consumers buying organic oats.

It is likely that the legislation will boost the organic sector as the new, clearer rules will facilitate its expansion and create a level playing field for all organic producers – those within the EU and those outwith the EU who import organic produce into the EU. Mixed farms (those that harvest organic and non-organic produce) must ensure that the two activities are clearly separated. Therefore, this requirement for strict segregation may encourage farmers to convert to purely organic production and, as such, indirectly affect the market for oats throughout the EU.

How will the entire Scottish market for oats be affected? The new EU Organic Regulation will only directly affect the production of organic oats. However, it may consequently affect the entire Scottish market for oats.

Although organic oats may be perceived as the “safer option”, there is currently a reported risk of pesticide and chemical residue on organic oats, even though they are not grown with direct pesticide application. This risk of accidental contamination with pesticides is likely to be reduced as a result of the new EU Organic Regulation.

With this reduced risk, organic oats may be perceived as “safer than ever” and therefore the best type of oats for use in your produce. Furthermore, if your business continues to use non-organic oats in its produce, it should be aware that non-organic oats may become less popular and consequently more difficult to source due to the anticipated popularity of organic produce following the EU Organic Regulation.

“With Brexit on the horizon, does my business need to be aware of this Regulation?”Despite the UK’s planned departure from the EU, if your business operates throughout the EU or imports or exports oats from countries within the EU, the new EU Organic Regulation will be of importance. Your organisation should also bear in mind that arrangements for importing and exporting organic goods to and from the EU will be affected by Brexit.

Furthermore, in its publication entitled “Trading and labelling organic food if there’s no Brexit deal”, the UK Government has stated that, post-Brexit, organic regulations in the UK will be the same as or similar to those applicable in the EU. Therefore, the provisions of the EU Organic Regulation, or similar, will be applicable to your business and it would be advisable for your business to become familiar with the new regime as soon as possible, and, in any event, before 1 January 2021!

Oats: Is the future organic?

[email protected]

Charlotte Fleming is a Trainee Solicitor in our

Private Client team.

About the Author

The new rules will create a level playing field for organic producers both inside and outside the EU.

Page 4: NEWSLETTER Food & Drink · 2019-08-07 · and reducing energy costs. For example, Coca-Cola Enterprises pioneered the technology as early as the early 1990s, and some whisky distilleries

Feeding the grid with food waste in Scotland

Well, put simply, the generation of excess food wastes resources and wastes energy, and as food waste rots, it releases harmful emissions which in turn pollute the atmosphere.

As such, UK legislation (the Environmental Protection Act 1990 (as amended)), sets out a waste hierarchy to which businesses and organisations (basically everyone other than domestic households) must take reasonable steps to adhere. The hierarchy notes waste management options which are ranked by their environmental impact:

PreventRe-useRecycle

Recover other valueDispose

Unlike some other forms of waste, at the disposal stage, food waste can become a valuable resource and can be recycled and used for energy, fuel and fertilisers. This is where anaerobic digestion (AD) technologies come in.

Recycling food waste through AD is a natural process whereby organic materials (such as food waste) are broken down into biogas (carbon dioxide and methane) and digestate. The biogas can then be either burned (to produce heat), used like a natural gas or as vehicle fuel. The other by-product, digestate, is a nitrogen-rich fertiliser which can be sold to farmers for use on their land.

AD is not a new technology and has been used in the UK for the treatment of sewage for the last century. However, AD technology has recently been adapted to play a key role in recycling and using food waste as a source of renewable energy. Unlike wind and solar power, AD has the potential to generate energy constantly.

As it stands, the UK has 109 municipal/commercial AD plants in operation, with 9 in Scotland (adbioresources.org), many of which will not just generate energy from commercial and household food waste, but also from other materials such as garden waste and silage.

However, AD technology is not only used on a municipal scale. A number of businesses across the UK, small and large, particularly those processing food and drink, have invested in onsite AD technology as a means of reducing their carbon footprint, improving long term environmental sustainability and reducing energy costs. For example, Coca-Cola Enterprises pioneered the technology as early as the early 1990s, and some whisky distilleries and brewers in Scotland are now using the technology as a means of processing liquid distillery waste products. But it is not just the food and drink processors investing in AD – there are over 350 agricultural plants across the UK (also called micro-scale digestion) processing and generating energy from muck, slurry and silage (adbioresources.org).

With the introduction of a Scottish landfill ban on biodegradable municipal waste set for 2021, AD and other similar technologies are ripe for investment and you should expect to see the use of these technologies becoming increasingly prevalent in Scotland for recycling both bi (or co)-products and food waste as we try to achieve our climate change targets.

[email protected]

Gary Baines is a Senior Associate in our Corporate team.

[email protected]

Rebecca Cox is a Solicitor in our Corporate team.

About the Authors

Recycling of food waste is receiving a lot of attention here in Scotland, and the Scottish Government has set an ambitious target to reduce the country’s food waste by one third (from 2013 levels) by 2025. To place this in context, in 2014, Scottish households threw away around 600,000 tonnes of food and drink waste, accounting for roughly 44% of all food waste in Scotland (Zero Waste Scotland 2016). So, at least 440,000 tonnes of Scotland’s food and drink waste will need to be “eliminated”, in order to achieve this target.

Why is this an issue? Does food not simply degrade and disappear naturally?

Unlike plastic, it doesn’t lie around for hundreds of years, does it?

Page 5: NEWSLETTER Food & Drink · 2019-08-07 · and reducing energy costs. For example, Coca-Cola Enterprises pioneered the technology as early as the early 1990s, and some whisky distilleries

Climate change: How is it changing our diets?

Nowadays, most people, apart from some world leaders, are aware of the looming danger that is climate change. Glastonbury 2019 was a plastic-free festival, with David Attenborough’s surprise Pyramid stage appearance and speech hitting the headlines. It seems that transportation and the use of plastics tend to dominate the current perception of harmful actions, whereas other actions, often the more easily preventable, are somewhat overlooked. For instance, it is claimed agriculture and meat have a significant effect on climate change. For this reason, more and more people are adopting a plant-based diet – not only to help the environment but also to improve their health.

In recent years, there seems to have been a constant battle between the rise in meat-eating middle classes in developing countries and the encouragement, in developed societies, to opt for more of a plant-based diet. Equal to the damage caused by exhaust emissions, it is claimed the livestock sector accounts for around 15% of global emissions. If a change in eating habits is implemented by the global population, we could see almost a quarter of the required emission reductions being achieved. This appears to highlight the effect that the global meat industry is having on climate change.

The phrase “danger level” has been coined to describe the circumstances in which the planet’s temperature shifts by 2°C, as this places humanity at risk. It is claimed that meat production is set to increase by 75% by 2050. Based on this potential rise, it is calculated that the earth’s temperature will rise by around 3°C by 2100. If the global population is to make simple changes in its diet, including reducing meat consumption, it could change the impact that we all have on future generations.

If the potential effect that meat production has on climate change is not enough to convince you, the World Health Organisation has issued research that the overconsumption of red and processed meat is linked to non-communicable

diseases, such as cancer and Type-2 diabetes. As well as being a health benefit for individuals, a reduction in meat consumption could also potentially reduce the strain on global health organisations such as the NHS.

As mentioned above, the current focus seems to be on transportation and plastic, with governments mitigating the damage through regulation of vehicle emissions or encouraging the use of electric vehicles, or through regulations governing plastic use, and encouraging the use of renewable items and the reduction or banning of single use plastics, where possible. There is no denying that these issues require to be addressed, and they certainly cry out for reform, but it seems that there should be more focus on the reduction of meat consumption in the fight against climate change. Understandably, there are concerns about governing bodies dictating diets, and it seems that the best way to encourage reduced meat consumption is through widespread public awareness. Currently, there seem to be gaps in public awareness of the link between diet and climate change. While awareness alone may not radically influence an individual’s choice to opt for more of a plant-based diet, or have an immediate effect on limiting the damage we are causing to the planet, it may allow for a starting block from which the governmental interventions may begin.

So, as I write this, and as a meat eater myself, I urge you to consider reducing your meat consumption in your diet, possibly starting with a “meat-free” day per week, if not for the health benefits, but for the impact on environment. Who knows? As I sometimes find, you may end up having “meat-free” days without even realising…

If a change in eating habits is implemented globally, we could see almost a quarter of the required emission reductions being achieved.

[email protected]

Amy Drew is a Solicitor in our

Construction team.

About the Author

Page 6: NEWSLETTER Food & Drink · 2019-08-07 · and reducing energy costs. For example, Coca-Cola Enterprises pioneered the technology as early as the early 1990s, and some whisky distilleries

Heatwave – berry good for some

Complaining that we’ve had too much sun is not something we do frequently in Britain. However, the summer of 2018 saw the fresh food industry take a substantial ‘hit’ due to consistent warm weather impacting agricultural yield. With parts of the country managing to dodge the, usually inevitable, summer rain for almost three months, the Agricultural and Horticultural Development Board stated that it had been the “driest run-up to harvest in 80 years” as plants that only grow in temperatures up to 25⁰C failed, and plants that rely on steady irrigation particularly struggled.

There were many knock-on effects of this, predominantly felt by supermarkets. Not only would their volume of produce be no larger, or in some cases less, than the previous year, they were also required to alter their specifications that were required of certain products. For example, apple growers found themselves asking supermarkets to allow smaller fruits as, without significant rainfall, they would not meet the current thresholds.

This, in turn, had an impact on consumers. One of the major issues faced by supermarkets was that, due to a lower yield in both fruit and veg products, they were required to increase prices in order to meet targets. Inevitably, this led to unrest across the board as customers were therefore paying higher prices for smaller fruits. These factors show just how crucial unpredictable weather can be in determining the perception of a number of organisations across multiple sectors of industry.

One fruit, however, did benefit from the unpredictable weather of 2018. Due to the cold climate suffered late into spring, strawberries began to grow more gradually and therefore took longer to ripen. This meant that strawberry yields in early summer boomed and the strawberries themselves were the biggest and best they could be. As one of the few examples of the positive impact that unexpectedly hot weather can have on the British economy, discount supermarket giant Aldi invested in an additional 112 tonnes of British-grown strawberries as farmers quickly found themselves in a surplus, just in time for a well-known tennis tournament that simply cannot be enjoyed without the crème de la crème of British strawberries.

Consumers felt the benefits of the strawberry surplus, too, with many other supermarkets offering discounted prices and special offers in-store to shift produce and keep up with competitors. Interestingly, as a roll-over from the increase in strawberry sales last year, strawberries are expected to account for almost 43% of industry revenue between 2018 and 2019. One of the key contributors to this is that farming

methods for strawberries have improved substantially, such as the use of glasshouses and polytunnels in recent years, causing the growing season to increase from six weeks to eight months – much to the delight of Wimbledon fans ready to cover the parks and gardens of Britain with punnets of strawberries and fruit-filled Pimms.

Furthermore, the impact that fruit has on the wider British economy is further understood through the sheer size of the operation. The fruit growing industry in the UK accounts for around 6,600 establishments and produces around 743,000 tonnes of fruit annually – meaning that thousands of jobs are dependent on the climate of that particular year. Despite this, there has been a significant change in one element of the process of bringing fruit from fields to mouths. Picking fruit in years gone by used to be a fun way of lending a hand, and often for families and young people to earn a little bit more pocket money; however, this has shifted to a more serious issue. The landscape has recently changed, as socio-economic and technological changes have seen this work become less popular, resulting in it being allocated to increasingly low-paid, overworked migrant workers. As a result, the damage we cause to the environment no longer spoils a day out, but determines livelihoods.

Moreover, an issue that continues to face the fruit and veg industry is the concept of searching for the ‘designer model’. It would be difficult to deny that supermarket shoppers are often spotted picking up a piece of fruit or veg, inspecting its imperfections with a judgemental expression before placing it back on the shelf to continue the search for that perfectly ripened avocado. The fruit and veg that do make it to our supermarket shelves are in fact the so called ‘cream of the crop’, but they are still not good enough for us. For years, supermarkets have offered only the most aesthetically pleasing fruit and veg to their customers, in turn allowing consumers to become even pickier when picking our fresh fruit and veg. Despite recent attempts by supermarkets to make buying flawed fruit and veg a trend, the majority of ‘non-spherical’ potatoes and ‘unfortunately shaped’ carrots are set to become animal feed or waste, and the impact this has on climate change is significant. Through our psychologically ingrained pickiness, the damage we cause to our environment continues to become the foundation of unpredictable weather and, you guessed it, imperfect fruit and veg.

Overall, as with multiple industries that are reliant on the climate, we can see mass change occurring within the production of fresh produce. With heatwaves forecast in the coming weeks, could we see a repeat of the fall-out caused by summer 2018 and, more importantly, is the general population truly aware of the ever-growing number of problems caused by our self-inflicted environmental harm?

[email protected]

Megan Lukins is a Trainee Solicitor in our

Commercial team.

About the Author

Strawberries are expected to account for almost 43% of food & drink

industry revenue in 2018/19.

Page 7: NEWSLETTER Food & Drink · 2019-08-07 · and reducing energy costs. For example, Coca-Cola Enterprises pioneered the technology as early as the early 1990s, and some whisky distilleries

All cream and no strawberries? The state of seasonal workingBritish summer has now officially arrived. With it comes Wimbledon along with abundance of fresh produce, seasonal fruit and vegetables – strawberries and cream included. Filling the shelves with these fresh goods is a huge task for farmers and food producers in the UK, with summer being one of the busiest times of year. To meet the demands of consumers, thousands of seasonal workers are employed each year to help harvest produce within the short summer season.

However, in recent years there has been growing concern over the number of seasonal workers in the UK, which has been declining sharply since the Brexit referendum in 2016. It is estimated that the UK requires around 80,000 seasonal workers to pick the summer fruit and vegetable harvest, and most of these workers come from the EU. The statistics are quite startling on this point with a recent National Farmers Union (NFU) survey reporting that of the 13,400 seasonal workers recruited between January and May of 2017, only 14 were UK citizens.

According to the same NFU survey, the projected shortfall of seasonal labour is now double that of what it was in 2016. In 2018, almost half of UK farmers reported some of their crops were left to rot in the fields as fewer EU workers returned to British farms, amounting to an approximate loss of £130,000 per business. This shortage is very concerning for farmers and food producers and shows the impact that Brexit is already having on the UK food industry.

Earlier this year, details of the new EU settlement scheme were announced. The scheme allows EU citizens who are currently resident in the UK, or arrive before 30 June 2021, to apply for settled or pre-settled status. It is aimed at EU citizens who want permission to live and work in the UK on a permanent basis, and is of little relevance to the thousands of EU workers who come to the UK on a short-term or seasonal basis. Seasonal workers from the EU, after 30 June 2021, will

have to enter the UK on a tier 5 temporary worker visa. Obtaining a tier 5 visa requires, amongst other things, a sponsoring employer and proof of a minimum level of savings. When this system comes into force it will be far more onerous for EU workers than the current pre-Brexit immigration regime.

So, given this bleak outline for seasonal labour, what proposals are there to address the issue? According to the government, a solution may lie in a new two-year seasonal worker pilot scheme, announced in September 2018. This pilot scheme aims to bring up to 2,500 seasonal workers from outside the EU to do seasonal farm work in the UK for up to six months under a tier 5 sponsored visa. In April 2019, it was announced that Concordia Ltd and Pro-Force Ltd were the two

companies chosen to operate and run the pilot scheme, sponsoring workers for the next two years. So far, Concordia has also announced that it is looking outside the EU to Russia, Moldova and Ukraine to fill the seasonal labour shortage.

The scheme is still in its infancy so there are no reports on whether this will address the current shortage of seasonal workers. However, it is clear that even with the introduction of this scheme, businesses in the food and farming sector will continue to face labour market challenges in the wake of Brexit immigration changes. This year it may be all cream and no strawberries for some.

Animals and back-breaking work – two things that come to the mind of the average person when they think of the agricultural industry. Unfortunately, in farming, back-breaking is not just a figure of speech.

Agriculture has the worst worker fatality rate per 100,000 workers in the main industrial sectors – this is more than 5 times that of the construction industry, which comes second. In the year 2017/18, five people were killed in Scotland in an agriculture-related accident, with 33 in total killed across Britain. A quick Google search reveals that there have already been at least three deaths in agriculture-related accidents in Scotland in 2019. The rate of non-fatal injuries in agriculture, forestry and fishing is also almost double the all industries rate.

These statistics are a far cry from the quaint perception of farming that persists in the public’s mind.

The most common causes of death in farming-related accidents have consistently been injury by an animal or being struck by a moving vehicle. The Farm Safety Partnership Scotland has an ongoing campaign known as FATE (Falls, Animals, Transport and Equipment), which highlights the small steps that can be taken to avoid these four common causes of injury or death in the farming industry. Farm Safety Week 2019 also took place on 15-19 July 2019, again aiming to highlight the risks and encourage the prioritisation of safety. Care has to be taken not just by individuals for their own sake, but also

to satisfy the duty of care that is owed as an employer or owner/occupier. Yet, while in the majority of other industries the accident figures have been on the mend, the number of farming accidents have failed to recover.

But why is the agricultural industry so injury-prone when compared with other sectors? It may be that health and safety regulations are less stringently enforced, as farming usually involves more independent working than, for instance, a building site, where there are far more people on site and various supervisors, all keen to make sure that the strict safety standards are adhered to. People are known to take more risks on their own, perhaps by necessity – whether someone is there to help or not, the work still needs done. Concerns have also been raised about an aging workforce, with 48% of fatal farming accidents happening to workers over 65.

Whatever the reasons behind the high accident rates, the fact remains that the agriculture industry is the most risky in terms of health and safety. Hopefully the ongoing campaigns will begin to remedy these figures.

Farming: animals and, quite literally, back-breaking work

[email protected]

Meghan Jenkins is a Solicitor in our

Employment team.

About the Author

[email protected]

John McGovern is a Consultant specialising in the defence of corporate criminal

prosecutions raised in Scotland by the Crown Office and Procurator Fiscal Service.

About the Author

The projected shortfall of seasonal workers is now double

what it was three years ago.

Page 8: NEWSLETTER Food & Drink · 2019-08-07 · and reducing energy costs. For example, Coca-Cola Enterprises pioneered the technology as early as the early 1990s, and some whisky distilleries

An interview with The Wee Tea Company

To begin, could you please tell us a little bit about how you started your business – where did the idea to start a tea business come from?The boom and revolution that happened in the coffee industry through the noughties pretty much paved the way for luxury tea brands. Thanks to the unquestionable shift in consumer expectation of their café experience, the days of leaky teapots and low quality dusty teabags have all but gone. Cafés don’t, and simply can’t, offer instant coffee granules or stale filter coffee in a market so tightly driven by premium drink experience. Lattes, Cappuccinos, Flat Whites, Espresso, Single Origin. . .just some of the words visible on any café menu, thanks to the premiumisation of the café industry, unarguably forced from the other side of the Atlantic. In other words, coffee drinkers are spoiled rotten! But tea – our national drink. . . has it had the attention it deserves? The nation’s tea drinkers were no longer willing to accept the overpriced, sub-standard offering in most coffee shops, delis and cafes – while watching their coffee drinking pals slurping on masterpiece coffee creations. Seven years ago, we set out on a mission to offer a real tea drinking experience to tea lovers everywhere, seeking partnerships with coffee shops, hotels, cafés and delis, to offer their customers a tea drinking experience that exceeds expectation.

How would you describe the current tea market?Busy! Clearly, whatever concerns people have around the economy, it is not deterring anyone from sitting down with friends and enjoying a brew (and a wedge of cake. . .)! Based on our sales, the service sector seems buoyant – and long may that continue. Retail is slightly more complicated. A quick trip to the local supermarket explains this perfectly. Affordable luxury shopping is perhaps not as frivolous as it was a decade ago,and, unfortunately, the tri-opoly that control our industry have chosen to re-invent themselves, expand their retail offering and effectively mimic the artisan style offerings from smaller players, using lower quality ingredients. In all honesty, though, the tea on offer has fallen away from the spotlight in recent years and made way for a focus on packaging. We are all striving for plastic-free tea!

What is your best selling product?Undoubtedly, our Breakfast Blend outstrips everything else. Considering our main focus is selling to caterers, though, this is perhaps not so surprising. I would be more keen to consider our experiences of retailing at food events, pop-up shops or online retail, directly to the public. When we meet our customers, we sell Rhubarb Flavour Rooibos (Red Bush) at twice the pace we sell anything else. Rooibos is grabbing more market space each year due to the reported health benefits and absence of caffeine. Our twist of adding the rhubarb flavour makes for a marriage made in heaven! Think rhubarb and custard sweeties! Outwith our sales of Breakfast Tea to trade, this is easily our top selling product.

What are your predictions for the tea market in the next 12 months, and how does your business fit into those? There is clearly room in our business for growth, particularly in the service sector. We will continue to focus our energy there for now, and seek to increase reach, turnover and profit. There are other hugely exciting projects we would love to pursue, including entering tea into the world of network marketing and a range of ready-to-drink cold tea products. It’s hard to believe we don’t have an Irn Bru flavoured bottled iced tea drink! Maybe one day? The ready-to-drink area of the industry has been the area of biggest growth year on year for a long time, and with some capital raising, it’s something we would love to do. Let’s get the B word out the way first though?

What would you say is your biggest challenge in 2019?Our biggest challenge will always be that we are selling one of the oldest commodities. Unilever, Associated British Foods and Tata Global Beverages really do control a lot of what happens in this industry. Our business reaches out to the independent, small businesses that want to offer quality, and veer away from the usual suspects. As long as they survive, we can survive.

Exiting the European Union will inevitably disrupt the supply chain for a wee while, but we have been looking at adapting our supply for a while now and the disruption should be minimal. This challenge will of course lead to opportunities! Maybe a competent parliament (wishful thinking?) will strive to negotiate great trade deals with countries all over the world who just love Scottish businesses and innovation.

It is no secret that the Brits are a nation of tea drinkers – over 100 million cups are consumed each day in Britain, while the number of cups of coffee drunk each day is estimated at around 70 million (tea.co.uk).

Fife-based Jamie Russell and Derek Walker are passionate about all things tea and set up The Wee Tea Company in 2012. This month, we sat down with them to find out more about their business and chat about all things tea. . .

www.weeteacompany.com