SCOTLAND'S largest cheese trading company is set to open an office near the heart of England's cheddar country in an effort to boost its penetration in the South and increase business volumes.
McLelland, which last year took a 20% stake in the Campbeltown, Arran and Rothesay cheese facilities of the collapsed Scottish Pride, will open up MCL Foods near Shepton Mallet in Somerset. The new subsidiary will be headed by Andrew Venton, who recently returned from Australia after helping Global International set up a dairy division there.
The Glasgow-based company holds a 70% stake in the new venture, while 31-year-old Venton has taken control of the remaining 30%. Although MCL is not tied to purchasing McLelland cheeses, the Scottish company believes the venture will boost its volumes by 25% within the next 12 months.
McLelland was established in 1850 as traders in cheese and grain, but only started building up its supply base within the last five years. Its first manufacturing purchase was in February 1995, when the company took a 60% stake in Caledonian Cheese in Stranraer.
''We have learned over the past few years the benefits of owning our own production,'' director Douglas Irvine said. ''Now we hope to see the benefits of being able to put through more volume to create business efficiencies.''
About 75% of McLelland's business is in branded cheeses such as Orkney Island Cheddar, Islay Dunlop and Seriously Strong. The latter was launched at the 1996 Highland Show and has managed to build up a yearly turnover of #25m in retail sales throughout the UK.
About #40m of McLelland's #120m in annual retail sales are south of the Border, and of these the branded cheeses dominate. Although the company wants to retain its position in the top end of the market, it hopes to use MCL to increase its non-branded business.
''We certainly have big plans for expansion down south,'' Irvine said. ''We also see this as a potential stepping stone into Europe.''
Initially MCL's main objective will be to target new multinational customers in the UK food and dairy sectors. Plans are also in place to install a ''re-sizing'' facility in Somerset in the next few months, which will employ 20 people packaging the bulk cheeses MCL buys.
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