Wholesalers in Scotland can apply for a share of a new £5m grant, it has been confirmed.
The sector-specific support comes after a long-fought campaign by the Scottish Wholesale Association and Federation of Wholesale Distributors.
The new Scottish Wholesale Food and Drink Resilience Fund has been established by the Scottish government to help wholesalers affected by coronavirus restrictions cover fixed costs for a six-month period from October 2020.
The fund is be targeted at food and drink wholesalers that sell to hospitality, on-trade or public sector clients that have seen sales fall by 20% or more since March.
It is intended to cover the shortfall in revenue and fixed operating costs such as business rates, rent, loan repayments, utilities and insurance, as well as other costs such as loss of stock.
It comes days after Welsh first minister Mark Drakeford announced wholesalers there would benefit from grants of up to £150k from a pot of £350m in sector-specific support.
Wholesale businesses in England continue to await a decision from the Treasury following a series of crisis talks with Defra over the past two weeks.
“The Scottish Wholesale Association is delighted that food and drink wholesalers, who are the ‘wheels to Scotland’s food and drink industry’, have been given this vital lifeline,” said SWA CEO Colin Smith.
“This support package will help secure many family businesses and SMEs across the length and breadth of the country, some having lost up to 95% of their income.
“While the sector still faces significant challenges, as many of our hospitality and tourism customers remain closed or restricted, this funding will make a huge difference to the survival of many SWA members, protecting food supplies into our 5,000 local convenience stores but especially into our hospitals, care homes, prisons and schools.”
Smith added: “We appreciate, however, that £5m won’t necessarily give the full support required by everyone, and given the complexities of the food and drink wholesale sector and the different types of wholesale businesses, SWA will be working closely with the Scottish Government to ensure our members get the financial and other business support they need.”
Rural economy secretary Fergus Ewing said: “We recognise that many food and drink wholesalers have lost huge amounts of business almost overnight, in addition to suffering stock loss and other costs as a result of their customers closing.
“This is affecting the long-term viability of these previously profitable businesses, so we’ve worked closely with the Scottish Wholesale Association to target this funding specifically at those that need it most and help them get through a tough winter.”
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