McLelland reports a less than seriously strong performance

MCLELLAND, the Scottish cheese producer behind brands that include Seriously Strong, Galloway and Orkney, yesterday served up a 3 per cent rise in annual sales to £171 million.

But pre-tax profits dipped by 2 per cent to 5.8m after losses at the Caledonian Cheese Company, one of McLelland's subsidiaries. The company blamed the fall in profits in 2009 on rising milk prices a year earlier, which weren't reflected in price increases to customers, according to accounts filed at Companies House.

Sterling's weakness also hit the Stranraer-based company, which imports President cheese from France and Galbani from Italy, as well as exporting its "Seriously" branded cheeses to more than 30 countries.

Writing in the accounts, director Andrew Smith said: "Despite the difficult market conditions in 2009, we have continued to invest in our manufacturing facilities to improve efficiencies.

"We increased investment in our brands to ensure we retained our market position in the face of high levels of promotional activity by our competitors.

"Our three main brands — Seriously Strong, Galbani and President — benefited from television advertising and have delivered good growth in 2009."

Smith added that the launch of the Seriously Vintage and Seriously Spreadable products had boosted the brand, while Galboni remained the "number one brand in Italian cheese".

McLelland — formally known as Lactalis McLelland after being bought by French group BSA in 2004 — acquired Somerset-based Lubborn Cheese last June.

McLelland's headcount rose from 380 to 455 following the acquisition, but the firm said it was consulting with 63 "business, administration and warehouse staff" in Glasgow with a view to closing its office and centralising services at Redhill, Surrey.

It said the consultation was due to conclude at the end of the month and it was trying to relocate as many staff as possible.