A major Scottish bakery group has secured a new £2 million supply contract with Asda after emerging from a period of severe financial difficulty.
Stirlingshire-based Mathiesons Bakery hailed its first UK-wide listing with the supermarket, saying it provided an “exciting opportunity” for the brand.
The deal comes just three years after the historic bakery and confection business which can trace its roots back to 1872 and was then trading as Mathiesons Bakeries plunged into administration for a first time.
Mathiesons Foods was created in May 2010 after Mathiesons Bakeries was acquired from the administrator in a deal supported by Lloyds banking group.
London-based specialist investor Pemberton Capital took a controlling interest in the Larbert-based firm in June 2011.
The current iteration of the company, Mathiesons Bakery Ltd, emerged following a pre-pack administration in May of 2012.
The restructuring gave the company a financial platform on which to build, and Mathiesons now supplies bakery goods to a number of major retailers including Morrisons, Sainsbury’s, Tesco and Aldi.
Mathiesons also operates a mail order business and maintains a six-strong portfolio of retail shops, primarily concentrated in the Falkirk area.
The company employs 200 staff, and turnover last year topped £8.5 million.
Mathiesons said its new £40,000-per-week deal with Asda built on an existing relationship between the two firms that currently sees it supply stock to 56 Scottish stores.
The agreement, which relates to its range of best-selling Bavarian fruit tarts, will see Mathiesons supply Asda stores with chilled products south of the border for the first time through a further 289 outlets across England and Wales.
“This is a very exciting opportunity which will bring our products to a much wider audience,” Mathiesons sales director Lorna Love said.
“It’s fantastic that Asda is continuing to support our brand, and we’re really excited about introducing our other flavours in due course.”
Asda said the move to significantly increase its business with Mathieson’s was part of its long-term commitment to sourcing the best home-grown suppliers for its store network.
“As part of our strategy we place huge importance on supporting local suppliers in growing their business, no matter how big or small,” Asda’s customer planner for Scotland and Northern Ireland Lisa Prudhoe said.
“Mathiesons is the perfect example of how Asda are able to support and nurture the businesses of local Scottish producers.”