Three years ago, the Australia-UK Free Trade Agreement formally came into effect, and tariff reductions – and gradual removals – are currently afoot across FMCG goods. Most tariffs on goods traded between the UK and Australia are being removed under the agreement, with many products already duty-free and remaining tariffs being phased out over the next few years. It’s inevitable that the deal will make trade simpler, with clearer rules and processes for businesses importing and exporting g
g goods. It also arrives at a moment when Australian consumers are progressively seeking heritage, craft and quality, creating a new alignment between policy and palate.
Walk through a supermarket and British food is not hard to find, it has been there for years, consistent and rarely changing. You may see it in the ‘international section’ at Coles or Woolworths: Walkers Shortbread, Tunnock’s Tea Cakes and Nairn’s Oatcakes. What is changing is scale and intent; British food is arriving with ambition.
Over the past decade, Australian consumers have become more fluent in the language of place of origin, a literacy bolstered by wine, coffee, spices and specialty produce. British imports, particularly from Scotland, have found a natural alignment with this category. The appeal also lies in the beauty of narrative; a product is far more intriguing if it carries a geography or a sense of craft that can be traced back to a specific place.
For British consul general for QLD and country trade director Richard Cowin, that demand has been consistent. “There has been a strong demand for Scottish produce in Australia for many years,” he told Inside FMCG.
From biscuits to billion-dollar exports
Last year smoked Scottish salmon began appearing across Australian supermarket shelves through a partnership between Woolworths and Associated Seafood, a development for a country that already produces its own salmon with considerable confidence, if not always without controversy. Tasmania’s industrial salmon industry has faced mounting scrutiny in recent years, with Greenpeace Australia Pacific warning of pressure on marine ecosystems and endangered species.
Cowin noted Australian appetites for Scottish seafood have grown in recent years, with shellfish and mollusks like langoustines and whelks now making their way onto local menus and shelves through exporters including MacDuff Shellfish. It is a long way from the North Atlantic to an Australian dinner plate, though that distance appears to be part of the appeal.
The evolution has caught on in the whisky category, too. Australian consumers are developing a sophisticated palate, likely influenced by domestic distilleries in Tasmania and a newfound global interest in single malts. Imported brands such as The English Distillery and Cotswolds Distillery are entering a market already primed for their story. Cowin frames the change in terms of spending behaviour. “Whisky is a good example of the role that provenance can play with demand,” he said. “Recent trends in Australia and elsewhere have been towards premiumisation, where consumers are cutting back on non-essential expenditure and favouring premium products with strong provenance.”
Premiumisation and the advent of the British pantry
British brands such as Tracklements, known for products like fruit cheese, have begun to appear in Australian delicatessens and independent grocers. These are not mass-market staples, but they play an important role in shaping perception. At the same time, the commercial realities remain. “Some UK brands can be guilty of presuming there will automatically be interest in their product just because they are from the UK or Scotland,” Cowin said. “Brands still need to demonstrate quality and value for money.”
The recent arrival of Marks & Spencer products in Coles stores offers a clear example of demand meeting distribution. When the partnership launched late last year, sales outpaced supply almost immediately. “Sales of much-loved products, like Percy Pig and Colin the Caterpillar sweets, outstripped supplies and there were reports of empty shelves on the first day of the launch,” Cowin noted.
Events have helped reinforce this repositioning. In September last year, the British Consulate-General in Sydney hosted a UK Food and Drink reception, bringing together producers, retailers and industry figures. It was a modest gathering, but it captured the advent of the British pantry. British food, once inherited, is now something chosen, with relevance to modern Australian consumers and their growing interest in origin-led consumption, sustainability and quality.
Looking ahead, the alignment appears natural, progressively. “Australia’s growing focus on premium, origin-led products plays directly to Scotland’s strengths,” Cowin said. “Categories with strong provenance stories like single-malt whisky, smoked salmon, premium seafood and traditional bakery are well placed to benefit.”
British food, once taken for granted, has now emerged as a gradual evolution. Food from the Commonwealth has become more visible in Australia, more varied, and far more intentional. It is being selected rather than assumed, and in that change lies its renewed relevance.
This story was featured in the July edition of Inside FMCG.