New products pay off as Graham’s The Family Dairy posts sales hike
The Bridge of Allan-based milk and food producer described a 4.7 per cent year-on-year rise in sales to £109 million as “encouraging”.
At £2.2m, profit before tax was up on last year and the 80-year-old business also reported a “strong” underlying – earnings before interest, tax, depreciation and amortisation – performance of just over £4.6m.
The firm said its “clear focus on authentic family brand values and development of brand message”, as well as continued business innovation had paid off. There was total capital investment of £5.6m made in the past year.
Last year saw the successful launch of Graham’s Skyr, a Scandinavian-style cultured dairy product which is said to be naturally high in protein. Sales of the product to date have exceeded expectations, the firm noted. It is available across the UK, as well as now being exported to the Republic of Ireland, France and the UAE.
In March this year, the company launched its Goodness range, introducing a new low-calorie ice cream and flavoured cottage cheese. The ice cream developed for the UK market was in direct response to the low calorie and lower-in-sugar ice cream currently trending in the US. Graham’s claimed that customer interest has been “unprecedented”.
Robert Graham, managing director at Graham’s the Family Dairy, said: “As a third-generation family business, I am very proud to be celebrating the 80th year of the business that was started with 12 cows by my grandparents in 1939 at Airthrey Kerse in Bridge of Allan.
“We pride ourselves, not only on working hard to produce high quality and great tasting products, but also being dynamic and innovative to meet developing consumer trends that are very much aligned to dairy products.
“It is very important that we continue to grow margins in order to be able to continue to invest into the business and keep up this pace of innovation.”
He added: “New product development is a key priority for us to enable us to meet developing consumer trends for great tasting, naturally functional dairy products made with fresh Scottish milk. This clear focus has led to us investing £5.6m in the business this year alone.”
In February, the milk producer said it had entered into a record five-year partnership with discount supermarket chain Aldi.
The deal extended an existing partnership between the pair and will see fresh Scottish milk continue to be supplied to all 85 Aldi stores across Scotland. The deal is worth in the region of £55m.