New product development and further brand investment are in the pipeline at Graham’s The Family Dairy, Scotland’s largest independent dairy company, thanks to £20million of funding support from RBS and its dedicated asset finance arm, Lombard.
Sales at the 75-year-old Bridge of Allan-based farming and dairy business have grown by around 20 per cent annually for the past 15 years, which has given it further confidence to diversify its offering and develop new product lines.
Robert Graham, managing director of Graham’s The Family Dairy, explains, “We are expecting to report a turnover in excess of £82 million for the year ending March 2014 and currently employ 420 people, but we don’t want to stop there. Provenance remains at the heart of our business strategy and we have expanded our farm base to support around 80 Scottish dairy farmers, ensuring we have sufficient quality produce. UK dairy product imports are higher than £2.5billion each year so we see definite opportunities to focus on and grow the home market.”
Having switched to RBS in March 2014, new funding will allow Graham’s The Family Dairy to ramp up its ambition for growth, with a view to investing more in its cream and butter markets and developing new product ranges under the award-winning Graham’s brand.
The RBS Corporate team worked alongside RBS Invoice Finance (RBSIF) and Lombard to structure a complete funding solution consisting of £7.7million worth of loan funding from the bank, an £8million finance facility from RBSIF and £4.8million worth of asset-based finance facilities from Lombard. With the funding in place, Graham’s is now able to make the most of expansion opportunities and grow south of the border where currently it sources just 15% of its revenue.
Robert Graham explains, “RBS impressed us with its excellent communication and quick decision taking. We already had a long-standing relationship on a personal level, so it made sense to trust RBS in business, too.”
RBS Regional Marketing Director Eddie Rintoul comments, “The entire team at RBS worked very closely with the management of Graham’s The Family Dairy to deliver the refinance package. We look forward to continuing to support the growth aspirations of one of Scotland’s most well known family businesses.”