A new research report released by UK-based audit, tax and advisory firm Crowe Clark Whitehill and the University of Portsmouth’s Centre for Counter Fraud Studies (CCFS) has revealed that food and drink companies in the country may lose £12bn a year to fraud.

The ‘Minimising Fraud and Maximising Value in the UK Food and Drink Sector 2017’ report highlighted the effects of fraud in the sector, and suggests measures that improve profitability by cutting the cost of fraud.

Crowe Clark Whitehill forensic and counter fraud services head Jim Gee said: “Our latest report, shows that the sector could increase profitability by 43%, unlocking an additional £4.8bn.

"At a time of returning food and drink inflation, the industry is under incredible pressure to manage and reduce costs."

“Our experience is that the cost of fraud can be reduced by up to 40% within 12 months. Some of the FTSE listed food and drink businesses could double their profits by reducing their fraud losses.”

Offering an insight into benefits to the UK food and drink sector on reducing the cost of fraud, the report highlights how the mechanism of decreasing the cost could boost profitability, as well as cut down the price of food and drink to consumers.

Gee added: “Food and drink fraud is the crime in our shopping baskets. At a time of returning food and drink inflation, the industry is under incredible pressure to manage and reduce costs."

By reducing fraud, the unmanaged business cost, forward-thinking businesses will get an opportunity to improve competitiveness and increase profitability.