Funding and support options for food and drink producers

Innovation and funding for food and drink producers
Food and Drink sector team briefing
17th October 2017

pkf-francisclark.co.uk
Administration

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Presentations followed by discussion
Presenter Topic
Andrew James
PKF Francis Clark
Sources of funding and business
support for food and drink producers
Liz Gilbert
Agri-tech Cornwall
Agri-tech Cornwall, including Cornwall
Agri-tech Innovation Grant Scheme
Katie Farley
PKF Francis Clark
R&D Tax Credits claims made by food
and drink producers
Louise Hutton-Bailey
Oxford Innovation (“OI”)
How OI can support development of
new products and markets

Funding for food and drink producers
Andrew James, Manager
17th October 2017

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Overview of the funding options
Equity Debt Grants
Crowdfunding

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• Food and Drink Production
• LEADER
• RDPE
• European Maritime Fisheries Fund
• Innovation
• Cornwall Agri-tech
• Innovate UK?
• Other (care re eligibility, specifically primary agriculture) e.g.,
BIG2 and Superfast Business Cornwall
Grants
Flowchart in pack

• “Project” eligibility – see next slide
• Impact / Project / Costs – i.e. usually not for general expenses
• Outputs – national & local priorities
• Compliance
• Procurement
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Grants: Funders requirements

• Sector
• Project costs
• Geographical area
• Business size
• Project overview
• Grant being sought
• Match funding
• Timescales
• Jobs created
• Potential issues
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Grants: Typical questions

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Grants: Getting ready
• Timescale – prescriptive, process and panels
• Match funding
• Competition
• Admin
• Patience

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Debt
• Generally applicable
• Serviceability and security
• Eligibility?
• If sourced through EU funds?
• Crowdfunding
• 12 minutes to fully fund on Funding Circle
• Mini-Bonds e.g. the “Burrito Bond”
Chilango raises more than £2m through
crowdfunded mini-bonds

Equity
• Generally applicable
• Scalability/ Growth and Exit
• Crowdfunding
• PE / VC – Food and Drink
specialists

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Business Support
• Growth Hub
• Oxford Innovation – including
• Access to Finance
• Breakthrough
• Transform
• Accelerate Through Innovation
• Cornwall Agri-tech
• Crowdfunder
• Santander Breakthrough
• Tesco Back It

• Blogs & factsheet
• Growth Hub & Access to Finance team
Keeping up to date

Francis Clark Food and Drink Sector Breakast
17th October 2017
Cornwall Agritech Innovation
Grant Scheme
Elizabeth Gilbert
Business Engagement Manager

Funders
• Part of Agritech Cornwall & Isles of Scilly Initiative
• £10m project funded by ERDF through the ESIF
Programme
• Cornwall Council & Council for Isles of Scilly

Project Partners
• Lead –The Cornwall College Group
• University of Plymouth
• University of Exeter
• Rothamsted Research
• Cornwall Development Company

CAIGS
• Delegated Grant Scheme for Cornish SMEs
• Grants available between £2,500 - £50,000 with a
maximum intervention 75%
• For projects which invest in research,
development and innovation.

Principal ResearchThemes
1. Animal health and welfare
2. Maximising soil, water and nutrient use
3. Improving productivity in specialist crops
4. Utilising technology to drive agritech

Food Sector
• Agritech and / or Agri food tech?

Agritech opportunities
• Collaborative research projects
• Graduate placements to work in RD&I
• Co-creation workshops
• Robin Jackson (Programme Director).
Email: robin.jackson@duchy.ac.uk
Tel: 07788442733

Contact
•Elizabeth Gilbert
•Agritech Business Engagement Manager
•Cornwall Development Company
• Liz.gilbert@cornwalldevelopmentcompany.com
• T: 01872 322672
• M: 07483134989

Research & Development tax relief
Katie Farley October 2017

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Food & Drink in the South West
• In 2015, food and drink accounted for 16% of UK
manufacturing output, making it the largest
manufacturing sector.
• Since 2000/2001 33,000 SME claims for R&D tax relief
• In South West in 2013/14 only 1,260 claims were
made, vs 16,060 claims nationally
• Are you missing out?

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Research & Development tax relief
For an SME, for every £1 of qualifying R&D expenditure,
an additional £1.30 is allowed in its corporation tax
computation as a ‘super deduction’. This means total
relief equal to 230% of the actual expenditure is available.
For every £1 spent – 46 pence of tax saved!
Repayable credit for loss making companies – 14.5% of
‘surrenderable loss’.

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R&D project seeks to achieve an advance in
overall knowledge or capability in a field of
science or technology through the resolution of
scientific or technological uncertainty – and not
simply an advance in a company’s own state of
knowledge or capability
Research & Development defined

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Means:
- Being innovative
- Pushing the boundaries
- Surpassing current industry standards
Doesn’t have to mean:
- Hi-tech laboratory development work
- PhD level innovation
- Re-inventing the wheel
So, what is R&D?

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Food & Drink - A walk through the supply chain
Raw materials
Product
Innovation
Manufacturing
process
Packaging
Post
production
innovation

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Raw materials
• Developing new techniques in cultivation, preservation
and harvesting
• Examples
• Oyster production
• Lobster fishing and supply
• Provenance raw materials for sausages
• Orchards vs hedgerows
• Harvesting technology

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Product Innovation
• Improving, re-engineering or adapting existing products’
quality, life or marketability
• Examples
• Skimmed milk from full fat
• Unfined beer
• Gluten free ready meals

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Manufacturing process
• Devising technology or processes to improve
efficiencies and minimise costs
• Examples
• Bottling and kegging plants
• Reed beds for waste water
• Production machinery

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Packaging
• Using new technologies and techniques to improve
packaging options
• Examples
• Design moulds
• Polymer composition for packaging requirements
• Boxes for marketing

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• Pushing boundaries with regards the use and
application of food
• Examples
• Michelin starred development kitchen
• Science of taste
Post production innovation

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Team of Corporate Specialists dealing with innovation,
technology and taxation.
Involvement level:
• Review of activities/explanation of scheme and tax
reliefs
• Assistance with existing accountants to ensure relief
claimed
• Assistance in preparation, submission and defence of
claims
• Review of existing claims, assistance with enquiries
How can we help?

• Innovation – Oxford Innovation Services
• Louise Hutton-Bailey / 17/10/17

What are the elements of successful innovation?
“Innovation is the translation of an idea, into a viable product or service”

What are the elements of successful innovation?
In order to be successful:
Capabilities (ingredients) + Processes (methods)

Ingredients
The right TEAM
The right STRATEGY
The right CULTURE
The right ENVIRONMENT
The right BUDGET

Method
The right PROCESSES & TOOLS
The right MEASURES & METRICS
The right TRAINING & DEVELOPMENT

How can Oxford Innovation help?
Who are we?
UK leading enterprise coaching
Delivering long-lasting and sustainable benefits to clients
We work closely with clients to improve the capability of business
and the individuals within the business

How can Oxford Innovation Services help?
Within Cornwall Oxford Innovation delivers two business support
programmes through fully funded coaching
Transform – for High Growth businesses
Breakthrough – for businesses in their first 12 months of trading

As a high growth business, we understand that your mind will be consumed
with the day-to-day running of your business. Transform gives you the
opportunity to step away from that to really work on your business growth
and strategy. By working with us, you will receive tailored coaching
dependent on your individual business needs. All relationships are managed
by your own lead coach from the Transform team to empower you to access
the right knowledge, resources and tools to transform your business.
Additional support options are also available to assist with critical stages of
growth – if you are looking to expand your team, we can help you recruit and
support you throughout the recruitment process.

Breakthrough offers tailor-made, fully-funded support to anyone in
Cornwall and the Isles of Scilly who wants to start a business or
who is in their first 12 months trading. Our team of expert coaches
will work with you one-to-one to help you plot the strategic direction
of your business. Our aim is to enable you with the confidence,
momentum and tools to make your business a success.

Innovation and Funding for Food and Drink producers
Food and Drink sector team briefing – Wrap up: Tom Roach, Francis Clark
17th October 2017

Next…
Q&A and/ or discussion
• With opportunity for Q&A for presenters and LEADER
and Growth Hub
• Discussion
Breakfast briefings – non sectorial
• “Funding for R&D” (7/11) – invite in pack
Food and Drink sector
• Newsletter and Future Events…

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