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Strong 2015 for ‘Number 1 Scottish dairy brand’ Graham’s The Family Dairy

Scotland’s favourite dairy brand, Graham’s The Family Dairy, has rounded off an excellent 2015 with the announcement of strong annual results – and the promise of yet more exciting growth in the months ahead.

The family-owned farming business, based in the heart of Scotland since 1939, has enjoyed a busy but successful year, including the launch of new product ranges, the acquisition of a new dairy site, the introduction of the living wage for their staff, as well as being named both number 1 Scottish dairy brand and number 3 Scottish brand overall.* 

Their strategy – a steadfast commitment to quality and innovation – has had a positive effect on the company’s bottom line. More than half of Scotland’s population currently buy Graham’s products and in 2015, Graham’s dairy sales have increased to £86.5m (2014: £85m) with pre-tax profit also rising to £1.6m.

Graham’s has also significantly reinvested in the company, encouraging sustainable growth and opening up new revenue streams that will reap future rewards. Capital expenditure of £5m has included spend at their dairy in Bridge of Allan in order to increase the production capabilities of spreadable butter, as well as the acquisition of the Glenfield Dairy site in Fife from First Milk, which was announced last month. 

This recent purchase will see the business expand into cottage cheese, quark and sour cream – key new products that will sit alongside Graham’s existing award-winning range of milk, cream, cheese, ice-cream, yogurt, gold range and butter.  There was also significant spend at the Nairn dairy from which Graham’s now produce a new range of yogurts, launched this year.

Made at their Bridge of Allan base, Graham’s spreadable butter is the fastest growing brand in Scotland (76% up year on year), driving the overall growth of the brand. However, 96% of the spreadable butter market is currently non-Scottish – an opportunity that Graham’s plan to take advantage of by highlighting their provenance to grow market share.

Coupled with a focus on their Scottish roots, Graham’s will also look to increase its margins in 2016 by increasing sales of it’s added value range of products, which will help fund an increase in marketing activity to boost awareness. Activity in 2015 included a new broadcast commercial; media spend on TV, cinema, press and outdoor; an ice-cream event series; and a renewed emphasis on digital channels. This approach will continue, with new partnerships to be announced in the New Year.

“Our vision is clear. We want to be the dairy brand of choice – and this year, we took a big step towards that goal,” said Carol Graham, Marketing Director at Graham’s The Family Dairy.  “Our range is delivered to over 6,000 customers, our sales have continued to grow and it was a particular highlight to become Scotland’s favourite dairy brand. To see our name up there with some of the country’s oldest and best-loved companies was a much-appreciated recognition of our hard work.”

Robert Graham, Managing Director for Graham’s The Family Dairy, said: “It’s been an excellent year but we’re not complacent and there’s much we still need to do. For example, to us it’s crazy that so much dairy produce bought within the UK isn’t actually made here. Those sales don’t benefit our local farmers and the extra mileage is no good for the environment either. It makes much more sense to back Scottish businesses and so that message will form a critical part of our plans next year.

Robert continued: “We’re a family business at heart and our core values of farming, family, quality, heritage and provenance always ring true.  We truly value the relationships we have with our 98 farmers and understand the pressures they are facing, which is why we continue to pay them the highest price in the UK. 

“Together we are committed to delivering the highest quality products and are proud of our history and provenance, something which seems to resonate with consumers.

“We are proud of what we’ve achieved and the numbers are strong, but we want our margins to be stronger next year and in the years beyond, which is why we’ve invested so heavily in the business throughout 2015 – improving efficiencies and encouraging future growth.

“As a proud Scottish company we are ambitious and have an eye to expanding our range across the UK and further afield, which will make for an interesting and exciting time in 2016.”

*Kantar WorldPanel UK, Official Brand Review 2015

For more information, please contact Kirstin Stevenson of Wire Media on 07803 970103 or email kirstin@wire-media.co.uk.

 

About Graham’s The Family Dairy

  • From their family farm in the heart of Scotland, the award-winning business has grown through three generations of dairy farmers to become one of Scotland’s greatest food and drink successes, since setting up in Bridge of Allan in 1939.
  • Graham’s The Family Dairy is Scotland’s largest independent dairy producing an award winning range of milk, butter, cream, ice cream and cheese as well as Graham’s Gold Jersey range.
  • Graham’s products are available the length and breadth of the country via more than 6,000 customers from independent retailers to hotels and restaurants as well as all the major supermarkets in Scotland, and some south of the border.