The nearly 70 million consumers in the UK are an enticing market for Australian companies, with a free trade agreement and goodwill adding to the appeal. But Paul Beare says regulations, VAT, banking and employment laws can catch some off guard. In this Q&A, Beare discusses what Australian food and beverage companies need to consider to ensure success in the UK market.
What can Australian food and drink businesses learn from companies that have expanded overseas, and why doesn't a successful Australian model always translate?
The businesses that succeed in the UK treat it as a new market, not a bigger version of home. Australia and the UK look alike from a distance, and that familiarity is the trap. Bunnings is the example every Australian business owner knows. It's brilliant at home, but it left the UK within about two years because British shoppers didn't respond to the model. Food and drink is no different. A product that sells well in Coles has to earn its place on a UK shelf all over again. The businesses that get it right prove demand first. Waiheke Distilling built credibility through the London Spirits Competition before setting up its UK sales channel. Proof first, then structure, then scale.
- What do Australian businesses need to understand about the UK food and drink market before making the move?
The UK is a big prize. It has nearly 70 million consumers and real goodwill towards Australian brands. The 2023 free trade agreement removed most tariffs, but tariffs were never the main barrier. Regulation, retail structure and cost are. Grocery is dominated by a few big supermarkets with tough commercial terms, so many brands do better starting with specialist retail, food service or online. Meeting Australian food standards doesn't mean you meet UK ones either. Labelling and allergen rules all need checking. Since January, larger businesses can't advertise foods high in fat, salt or sugar on TV before 9pm or in paid online ads.
- What foundations do businesses overlook?
UK set-up runs in a sequence, and one missing piece holds up everything after it. Start with structure. A subsidiary and a branch carry different tax and liability consequences. Then comes the bank account, often the slowest step for an overseas business. Without it, you can't run payroll or pay suppliers. VAT catches people out too. Most food is zero-rated, but confectionery, crisps, soft drinks and alcohol are taxed at 20 per cent. Get that wrong and it hits your margin from day one. Every food business must also register with its local council at least 28 days before it starts trading.
- What do Australian businesses need to know before building a local team?
UK employment law looks familiar but works differently. There's no modern awards system. Instead, there's a national minimum wage, statutory sick pay and a duty to enrol staff into a workplace pension. Right to work checks are mandatory, and the fines are serious. The rules are also changing. From this autumn, employers must take all reasonable steps to prevent harassment of staff by customers, which is a big shift for hospitality. From January 2027, staff can claim unfair dismissal after six months, down from two years. If you're sending Australians over, you'll usually need a sponsorship licence, and that takes time. Hire at least one senior person who knows the UK market.
- Why does local knowledge matter?
Because the UK customer isn't the Australian customer. British shoppers respond to heritage and provenance, which can work in an Australian brand's favour. They are also loyal to what they know, so a newcomer needs a clear reason for them to switch. Business culture differs too. British buyers tend to be more reserved and slower to commit, and a direct Australian pitch can feel pushy. None of this is in a market report. You learn it by being here, or by working with people who are.
- What should businesses consider before their next international move to avoid costly mistakes?
Give it more time and money than you think. Plan for the UK to take 18 months to two years before it pays its own way. Get advice before you commit, because structure, tax, banking and employment decisions are all connected, and unwinding the wrong set-up later is slow and expensive. And test before you scale. Use a distributor, a pop-up or a single retail partner to prove demand before you sign a long lease. The UK rewards Australian businesses that do their homework. It's unforgiving to those that assume it's just like home.
Paul Beare is the founder of Paul Beare Ltd, a UK-based professional services firm that helps overseas companies set up, operate and grow in the UK. He founded the business in 2015 with a clear mission: to give overseas companies a trusted UK partner when expanding into Britain. Today, Paul Beare Ltd has grown into a full-service accounting, company formation, banking, tax, payroll and legal advisory firm, working with clients from Australia, New Zealand, the USA, Canada, South Africa and across Europe.
