Lidl backs British farming to the tune of £4 billion

By Rob Blair, Partner, and ARA specialist

Supermarket Lidl has announced that it is investing in British food businesses to the tune of £4 billion.

The announcement comes as Lidl increased its percentage of the UK grocery market.  Research suggests that Lidl has captured 7.2 per cent of the market as traditional competitors lose market share to the discount supermarkets. The latest announcement adds to spending plans announced back in 2019. Lidl GB rolled out a five-year plan committing to a £15 billion investment in the British food sector from 2020-2025.

Whilst much of the food purchased by Lidl is sold in its UK supermarkets, Lidl is also a significant exporter of food from the UK. During 2022, it sent more than £500 million of produce abroad to its other operations.  Currently around two thirds of Lidl’s products were sourced from the UK. This makes it the largest volume purchaser of fresh pork in the whole country.  Lidl’s exports to its other markets, includes £50 million of cheese, with Polish customers being the biggest fans of Somerset Vintage Cheddar.

The chief executive of Lidl pointed out that the investment underlay the supermarket’s commitment to sourcing large amounts its core products within the UK and that this was a long-term commitment to British farming.

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