Daniel Zeichner, Food MinisterJPG

Food minister Daniel Zeichner (standing, above) joined senior wholesalers and suppliers in the Houses of Parliament yesterday (4 February) to launch the Federation of Wholesale Distributors’ (FWD) new report, which highlights the integral role food and drink wholesalers play in driving growth in the UK’s economy.

The report, Going for Growth, by Capital Economics, commissioned by FWD, finds food and drink wholesale distributors turned over £34 billion in 2023/24 and provided direct employment for 77,000 people, with 5,000 jobs supported in every region of the UK.

Zooming out to Include the activity supported in their supply chains and the retail and foodservice businesses they serve, around 1.5 million jobs are supported by the wholesale sector. Wholesalers directly contributed £3.5bn to national output in terms of gross value added.

Addressing guests at the launch, Daniel Zeichner said: “This report highlights just how important the wholesale sector is. These are really significant numbers. Economic growth is absolutely central to wholesale businesses, as is breaking down the barriers to opportunity.

“Our pledge to you is to work with you as we begin to develop our policies. Our stated goal is to try and help change the way the supply chain operates to make sure there is a fair distribution of resources through the supply chain, and I really look forward to working with the wholesale sector on this.”

With economic growth cemented as the central mission for the UK Government, the report shows the full extent of the sector’s value to the UK economy. Wholesale distributors act as the backbone of the value chain, generating £33.6 billion in turnover, with £17.5 billion from sales to retailers and £13.4 billion from sales to foodservice providers. The sector indirectly supports around 1.2 million jobs and £33 billion of value added in these downstream industries.

Wholesalers spent £27bn with their suppliers in 2023/24, supporting 250,000 jobs and contributing £18.6bn gross value added to the UK economy.

Elsewhere, the report identifies some of the challenges and opportunities wholesalers face such as increased transport costs, labour shortages and navigating the path to net zero.

Also speaking at the launch, FWD’s head of external affairs, Lyndsey Cambridge, said: “Wholesalers are the lifeblood of the nation – from supporting high street restaurants to supplying hospitals, schools and local retailers with food. This groundbreaking research provides a comprehensive economic impact of food and drink wholesale, demonstrating the value and importance of the sector in improving consumer choice through its support for retailers and caterers.