SAC Food & DrinkFerguson BuildingCraibstone Estate

AberdeenAB21 9YA

T: 01224 711250E: david.lamb@sac.co.uk

SAC Consulting

SAC Food & DrinkExamples of Projects Delivered

SAC is a charity registered in Scotland, No. SC003712

www.sac.co.uk

Bespoke Training for the Food & Drink IndustryInnovation & Business Growth ProgrammeGrampian Food Forum

The purpose of the programme was to provide food businesses with the necessary competence, skills and knowledge to achieve their growth ambitions through innovation, adding value, new market developments and quality improvements.

The training programme, designed and delivered by SAC Food & Drink with delivery input from industry experts, involved a series of workshops and a best practice visits.

Workshops covered a variety of topics and were designed to provide practical working sessions, while also encouraging networking between producers.

• Farmers’ Markets & Direct Marketing • Public Relations• Packaging & Labelling • Approaching Your Customer • Exhibition & Event Management• Pricing, Profitability & Business Growth• Product Evaluation• Development Plans

Best practice visits included trips to Fisher & Donaldson, Connage Highland Dairy, The Really Garlicky Company, MacKay’s and St Andrew’s Farmhouse Cheese which provided a practical illustration of issues discussed at the workshops.

Thirty-eight participants have taken part in the programme over 2009 and 2010 and companies represented have ranged from small start-ups to well established larger organisations.

“The Forum certainly provides a great networking infrastructure. Furthermore, the fact that workshops are specific to the food industry is helping to bolster my understanding of marketing and innovation within the food industry, which is a big plus for me in having things so focussed.”

Yvonne Tindal, Macphie of Glenbervie Ltd.

Training for IndustryThe Scottish Fellowship in Food & Drink

The Scottish Fellowship in Food & Drink is a professional qualification designed to deliver tangible and quantifiable benefits for programme participants and their organisations. It is aimed at managers and owners of small and medium sized businesses and middle or junior managers of larger enterprises. The programme was created in response to industry demand and following discussions between organisations such as QMS, Scotland Food & Drink and A K Stoddart.

The programme is delivered in four modules over a year by SAC Food & Drink and the University of Abertay. Four managers took part in the first year of the Fellowship and another four participants, this time from the meat and bakery sectors will participate on the second year’s programme.

“Developed for the industry by the industry, the Food and Drink Fellowship has been designed to equip tomorrow’s business leaders with the tools and knowledge they need to address the issues and opportunities of running a food and drink business.

Drawing on case studies and guest speakers from the industry, the fellowship will deliver practical and first-hand experience on developing successful strategies for growing the student’s business.”

Amanda Brown, Scotland Food & Drink

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Care Farming DevelopmentPitgaveny Walled GardenMoray Market Garden Company

Rebecca and Eric Russell at Pitgaveny near Elgin wanted to develop their existing walled garden and outbuildings into a Care Farm to operate as a social enterprise providing meaningful work for those out of the labour market. The aim was to help people back into work by improving their physical and mental wellbeing through active involvement in farm and horticultural work. The enterprise could encourage a positive outlook for the care farm participants whilst also creating a market for local produce. The potential benefits included improving participants’ employability, promoting and improving health in the area and benefiting the local economy through greater investment locally.

The project would need to create a sustainable business through sales of fruit and vegetables with a view to developing a farm shop in the future.

SAC Food & Drink undertook a project feasibility study which included a scoping exercise of similar businesses in the area, financial projections for the enterprise and the production of a delivery plan outlining an effective operational structure for the business.

As a result of this study, SAC Food & Drink recommended that the enterprise be expanded to look at other avenues for income generation. This involved linking up with Moray College to provide horticulture instruction, adapting outbuildings for food production e.g. jam making and cookery courses, and selling of produce to local companies in the surrounding community. It was also recommended that the enterprise sell their produce through the local farmers’ market and look at supplying the public sector. Suggestions for the development of a website, organisation of open days and a loyalty scheme were also provided along with a full financial appraisal for the potential new business.

Specialist ConsultancyMackintosh of Glendaveny

Mackintosh of Glendaveny was established in 2009 by Gregor Mackintosh. The idea of producing extra virgin cold pressed rapeseed oil came about through his honours dissertation undertaken at SAC in Aberdeen and supervised by the Food & Drink team. Following graduation, Gregor developed his business supported by the Prince’s Scottish Youth Business Trust (PSYBT).

Gregor participated in the Grampian Food Forum’s Innovation & Business Growth Programme facilitated by SAC, which particularly helped him with product development and event management. Mackintosh of Glendaveny now produce a range of infused rapeseed oils and won trade stand of the year at the 2011 Taste of Grampian event. Gregor has won a number of prestigious awards for his business including the PSYBT Entrepreneur of the Year and the Shell LiveWIRE Young Entrepreneur of the Year (Scotland).

SAC Food & Drink have provided consultation support to Gregor focussing on pricing structures, promotion planning and negotiation skills. SAC have also provided consultation on crop variety.

Macintosh of Glendaveny products can now be found in all Scottish Asda stores as well as a wide range of specialist retail outlets, and Gregor continues to approach and negotiate with other retailers.

More recently SAC Food & Drink have worked on a product development project for Mackintosh of Glendaveny alongside the University of Abertay. This is funded through the Scottish Funding Council’s Innovation Voucher Scheme, managed by Interface.

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Business Expansion & DiversificationHalymyres Farm, Stonehaven

Lorna Bates already ran a riding school at her farm on the Dunottar Estate near Stonehaven, with an outdoor arena that she utilised for teaching and Pony Club events.

She approached SAC to conduct a feasibility study and produce a business plan to support a grant application for expansion and diversification of the business.

The project included the construction of an indoor riding arena and the addition of an indoor retailing unit for equine and pet supplies along with a café. Lorna had identified the need for a local equine and pet supplies retailer in the Stonehaven area and saw an opportunity to fill this gap. The total cost of the proposed project was in excess of £1 million.

Working alongside the local office, SAC Food & Drink carried out a feasibility study looking at a number of key areas including the potential market for such a business, market drivers, the local population and competition. A survey of existing Halymyres Farm & Stables clients was conducted to assess opinion on the plans for development.

A financial appraisal and sensitivity analysis was produced along with a comprehensive business plan for the expanded business. The grant application was successful allowing for the construction of a new 72m x 30m indoor arena along with a new equestrian and feed store, to accompany the existing riding school, eventing and livery facilities.

Adding Value‘Kedar’T Lochhead & Sons

Gavin Lochhead operates a 132 hectare dairy enterprise which has been certified fully organic since 2001. The herd consists of 150 Brown Swiss milking cows that produce 960,000 litres each year. With the recent drop in organic milk prices, Gavin’s intention is to add value to the farm’s milk by processing 250,000 litres of it into organic cheese.

A Brown Swiss milking herd is unusual in the UK and Gavin plans to develop a cheese processing facility on the farm which will provide a closed supply chain with high levels of provenance, animal welfare and traceability.

Gavin previously participated in the SAC facilitated Added Value and Quality Development Programme, organised by Scottish Enterprise in the Dumfries & Galloway area. The programme enabled Gavin to fully develop this project and give careful consideration to all aspects of it, including the brand name ‘Kedar’ and Quality Assurance.

“The combination of all these factors will provide a strong and unique story and identity for the brand which will differentiate our products from others within the cheese category.”

Working with the local office who completed an SRDP application for a new robotic milking parlour and cattle shed on the farm, SAC Food & Drink conducted a background feasibility for the food processing plant. This incorporated market intelligence, competition analysis and exploration of both the local and national market for niche cheeses. SAC Food & Drink also conducted a financial appraisal for the business and completed the SRDP application for part funding of the project which was successful.

“It will certainly add to the value of our milk production. The industry is obviously going through a very hard time at the moment, and diversifying looks like the right move.”

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