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Nairn’s Oatcakes Invests £6.5m in Major Gluten Free Factory

Posted: 16th March 2017

Nairns inside factory selectEdinburgh-based oatcake and biscuit manufacturer Nairn’s Oatcakes has opened the doors of its new, ‘state of the art’ gluten-free manufacturing operation in Newtongrange, Midlothian following an impressive investment of over £6.5m.

The operation comes in response to growing consumer demand for Nairn’s gluten-free products, resulting in the existing gluten-free sites reaching production capacity. The new factory will enhance and support Nairn’s future, allowing it to satisfy demand for its current range, whilst increasing capacity for a significant NPD pipeline to be developed.

Nairn’s is one of UK’s Top 3 gluten-free producers*, having entered the sector back in 2010. Gluten-free products have become the driving force behind the UK’s burgeoning “free from” market which is now worth almost £500m* – this impressive category growth shows no signs of slowing. The new ‘state-of-the-art’ manufacturing site will be a key asset in helping Nairn’s achieve their long term growth plans.

Martyn Gray, Managing Director at Nairn’s said: “Production at our current site had reached a ceiling, with limited scope for growth. With investment in larger-scale premises and plant, we now have both the capacity and competitive cost profile, associated with greater automation, to secure and develop the long term future of Nairn’s.

Nairn’s pride themselves in making products that are simple, natural and wholesome with an unrelenting focus on quality. Over the years, we’ve become experts in oats and have been able to leverage this expertise with our gluten free range. We currently produce gluten-free oatcakes, crackers and cereals. Our oatcakes and Biscuit Breaks, in particular, have become market leading staples for those following a gluten-free diet and our new production facility will allow us to significantly expand our product ranges to take advantage of an ever-expanding market. Data shows much of the category growth being driven by “lifestylers” which puts Nairn’s in a strong position, as our gluten-free products follow the same ethos of our core range – simple, natural and wholesome.

Funding for this investment has been provided by our long term banking partner, HSBC.”

Donald Rankine, Relationship Director at HSBC in Scotland, said: “The gluten-free sector is thriving so we were more than happy to fund Nairn’s new manufacturing site and support the business’s ambitions to expand. In a competitive market, innovation is critical to both survival and success and throughout our long relationship we’ve seen Nairn’s evolve its products and claim its place as an industry leader. We wish Martyn and his team the best of luck for the future.”

Pictured above; (L-R) Martyn Gray (Managing Director), Hector Laing (Gluten Free Site Manager) and Brian Douglas (Engineering and Project Manager) with baker, Peter Smith, looking on

Business Comment

Business Comment is the Edinburgh Chamber of Commerce’s bi-monthly magazine. It provides insight on Edinburgh’s vibrant business community, with features on the city’s key sectors, interviews with leading figures and news on new business developments in the capital.
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