Scotherbs “The progress Scotherbs has made towards its goals in such a short time is a remarkable Supply Chain Development Drives New Sales achievement. Scottish Government and Scottish MDSC has helped Scotherbs to: Scotherbs is the only volume grower, packer and Enterprise are pleased that our support has played a key part in developing new added value market opportunities and building a more resilient and sustainable supply chain.” marketer of fresh herbs in Scotland, serving a Develop new business with UK multiple range of sectors across the UK. retailers worth an additional £2.25m around 105 people at its site in Longforgan, near sales per annum – an increase of over 40% It employs Dundee and farms approximately 250 acres in the region. Employ an additional 20 staff Develop a range of new, added value challenge, driven by volume losses through products, worth £0.5m in additional established retail customers for fresh, packaged sales, with a further £1.5m targeted by herbs, Scotherbs embarked on a revised 2016 strategy to drive sustainable volume and profit Following a period of sustained business growth. The MDSC programme is a four year £1.6m project over 2013-2017, funded by Scottish Refocus fresh, packaged herb supply Government and Scottish Enterprise, and is a towards a distinctive retailer base driven key priority within Scotland Food & Drink (SF&D) initially by Sainsbury’s and Waitrose, based partnership’s strategic action plan. Managed by on a premium quality and provenance Scottish Enterprise, it is designed to support positioning food and drink supply chains to fully exploit Drive more value from fresh, packaged opportunities in the UK and international herb supply by launching a proprietary markets. brand Stephen Baillie of Scottish Enterprise is delighted at the success shown by Scotherbs to date with support from the programme. Drive increased revenue and profit through the development of added value herb products targeted at processors serving adds value to other Scottish premium protein primarily and vegetable products. the M&S, Waitrose and Sainsbury’s supply chains, covering bulk supply and a variable size, sachet capability “This is a really good example of how the MDSC Ensure that the Scotherbs raw material initiative can add value to the support that we supply chain is fully developed to meet the are able to give Scottish companies through our needs of the strategy Account Management Service,” explains Stephen Baillie. “Our Account Manager was said able to help the company to develop its new “Scotherbs saw an opportunity to grow the product development capability, while the MDSC overall fresh herb category in Scotland and felt it team worked in parallel to help the company to was uniquely positioned to add value to Scottish develop its supply chain infrastructure and products technical capability.” MD of Scotherbs, in a Ronnie healthy, Leggett sustainable and flavoursome way. This growth strategy takes Scotherbs in a new direction, requiring new capabilities, technologies, skills and supply chain infrastructure. Key to the success of the strategy is the development of robust and effective supply chains both upstream and downstream, and this is where Scotherbs has received strong support from the Market Driven Supply Chains (MDSC) initiative funded by Scottish Government and Scottish Enterprise.” Through the development of a revised supply chain strategy with increased home-grown, With support from both MDSC and its Account Scottish provenance herbs, together with Manager at Scottish Enterprise, Scotherbs is deeper relationships with selected international working other growers for outwith the Scottish season, Ronnie manufacturers in the premium meat, fish and Leggett feels the Scotherbs’ supply chain is vegetable sectors to develop fresh herb based robust and fully capable of meeting the current infusions and marinades in sachet format. supply needs, with potential for further Scotherbs adds value to the herbs, which in turn extension to meet forward demand. in collaboration with The development of the capability to LEAN TeamGB, one of the MDSC team of manufacture and supply, fresh added-value, specialist high care products to a range of processing feasibility / technical capability assessment to sectors, introduce the new technology and products into based on a premium Scottish provenance is also progressing well. partners, undertook the expert Scotherbs, which has been key in generating the successful result. “By working closely with our customers, we are evolving new products designed to add value to The Scotherbs strategy is building traction, with the consumer experience, developing the fresh new business secured serving three depots for J herb supply chain in a sustainably profitable Sainsbury branded herbs across Scotland, manner, while collaborating with other premium Northern Ireland and N W England, as well as Scottish producers,” says Ronnie. securing fresh herbs supply under the propriety brand of “Robert Wilson’s Herb House” in all Waitrose Scottish stores. These initiatives have generated annualised, incremental revenues of some £1.5M. There are also live business proposals in place with at least one additional retailer, with an estimated incremental £750K potential sales. These developments would constitute an increase in sales of over 40% with additionally, “This is what the MDSC initiative is about,” says Alan Stevenson of SAOS, the organisation in charge of delivering the MDSC project with a team of highly experienced supply chain specialists. “MDSC offers very practical support and expertise in developing and delivering effective supply chains to get product to market, building partnerships and collaboration in supply chains, and solving problems anywhere in the chain that prevents it operating efficiently and effectively”. up to 20 new roles having been created across Operations and New Product Development to meet the demand. New products from Scotherbs will begin entering the market from October 2014, with additional sales of £2m per annum, predicted by 2016.