Nairn's Oatcakes Ltd is a Scottish company founded in 1896 that produces oatcakes and gluten-free products. It has two production plants in Edinburgh and exports internationally. The presentation outlines Nairn's history, products, markets, and business challenges such as reliance on one supplier and competition. A PESTEL analysis identifies political, economic, social, technological, environmental and legal factors impacting the business. Financial data from 2007-2016 shows increasing turnover.

1. Nairn’s Oatcakes Ltd
Business &
Management
Challenges
SOE08101 - 2016 Group Presentation
Team: Sarah-Jane Treacy, Elodie Ripoll, Rikki McAdam, Renata Krol, Sandra Wilson

2. Presentation Outline
Nairn’s Oatcakes Ltd
• Background
• Locations
• Products
• Market Analysis

3. Background
1896 a couple John and Sarah Nairn opened a village bakery in Strathaven, Lanarkshire.
Sarah’s idea for the bakery was to have oatcakes in the bakery exactly like they had been
baked in her own kitchen
In 1996, the business was bought out from United Biscuits by current Nairn’s chairman
Mark Laing and three co-directors
Today Nairn’s are the market leaders in the UK for oatcakes and gluten free oatmeal
products
“Our aim is to make simple, natural,
wholesome food that tastes great” – Nairn’s

4. Location
Production Plant 1
Nairn’s Oatcakes Limited
90 Peffermill Road
Edinburgh
EH16 5UU
Production Plant 2
Under Construction
Edinburgh

5. Products
Organic
Gluten Free

6. Markets
Main market is the UK
7 Key Customers
International markets
USA, S. Africa and Cyprus

7. Market Analysis

8. Risk & Root Model

9. PESTEL Analysis
Political Economic Social
Technological Environmental Legal

10. 5 Forces

11. SWOT
Strengths
Nairn's values, history, mission and
commitment to health and community
* Strong experience in the industry
* Only producer of oat gluten-free
products in the UK
* Good relationship with the supplier
* HR policies, very good and respectful
approach to employees
* Encourages a healthy lifestyle through
their product ranges
* Strong financial record
Weaknesses
* Reliance on one supplier of the core
product
* Requires agents for international
exports.
- e,g. M&S in Canada
* Narrow customer base
* Not having clear and strong plan
how to deal and manage with strong
demands
Internal

12. Opportunities
* Government support of healthy
products
* Customers are more health
conscious
* Growth in gluten free awareness
globally
* Mainstream shops stocking gluten
free products
Threats
* Potential competition in the gluten
free market
* Only as good as the agent Nairn's
use
* Difficulty in establishing market
abroad , cultural differences,
perception etc.
*( Sustainability on foreign market
problem)
ExternalSWOT

13. Value Chain

14. Financial Performance
-
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
£'s
Year
Profit & Loss Statment for 2007-2016
Turnover
Operating Profit
Profit for Financial Year

15. Business Growth
Simmers Ltd
2005 Nairn's Oatcake Ltd
2008 £5 Million investment in
new production line & start of
R&D development
2009 Introduced gluten free
porridge
2010 Investment in packaging
2011 Gulten free oatcakes
launched
2015 Fully automated
packaging investment
2016 New production location
and plant dedicated to gluten
free products
0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Nairn's Oatcakes Ltd Financial Performance
Simmers
Nairn's
Recession
Nairn's
Year
£
"recession no serious threat to organic foods and drink" (Passport 2011)

16. Other Business Challenges
• Key customers
• Only one Supplier of oats
• Competition from similar products
• Entry market failures
• Staff skill audit

17. Business Leaders
Currently there are four senior managers at Nairn's all of which
were part of the buyout from United Biscuits.
Technical Director - Gavin Love
Finance Manager - Ken McGarrity
Sales & Marketing Director - John Holroyd
Managing director - Mark Laing

18. Thanks for your attention
If you have any questions please feel free to email the team
Sarah-Jane
Treacy
Elodie Ripoll
Rikki McAdam
Renata Krol
Sandra Wilson

19. VIDEO
Video can be viewed HERE: https://youtu.be/9QK7v0pCnhk
After a trip to the factory in Edinburgh the team had more of an insight about
production, markets etc. Please enjoy the video of our visit

20. Bibliography
Image References
http://thiscornerofthewoods.com/2013/05/
http://www.express.co.uk/news/uk/426779/British-economy-set-to-rocket-as-growth-expectation-doubles-
for-2013
http://freelancefolder.com/four-new-social-networking-trends-for-freelancers-to-explore/
http://www.instamedia.com/technology/computers-revolutionised-manufacturing-process/
http://www.winslowtree.com/?p=38
http://www.tri-c.edu/administrative-departments/office-of-legal-services/legal-clinics.html
http://www.prweek.com/article/1289580/nairns-oatcakes-appoints-ccd-uk-wide-pr-push
http://www.nairns-oatcakes.com/
Video Music http://mp3tunes.cc/download?id=7rjbrqcQ5Sw

21. Bibliography
luten Free Reference:
USA - Food & Drug Agency (FDA)
http://www.fda.gov/ForConsumers/ConsumerUpdates/ucm363069.htm
Canada – Health Canada
http://www.hc-sc.gc.ca/fn-an/securit/allerg/cel-coe/gluten-position-eng.php
UK – Government Foods Standards Agency
https://www.food.gov.uk/business-industry/allergy-guide/gluten
UK – FSA Food Hygiene
https://www.food.gov.uk/business-industry/food-hygiene
Australia & New Zealand – Government Food Standards (FSANZ)
http://www.foodstandards.gov.au/code/userguide/Documents/Userguide_Nutrition%20Claims_PartB_March12.pdf

22. Bibliography
PESTEL REFERENCE:
https://www.hwb-accountants.com/news/news-bulletins/2015/07/13/tax-changes-announced-in-the-summer-budget-2015/
https://www.gov.uk/guidance/importing-goods-from-outside-the-eu
https://www.gov.uk/government/publications/exporting-to-france/exporting-to-france#tax-and-customs-considerations
https://ig.ft.com/sites/numbers/economies/uk/
http://www.telegraph.co.uk/finance/economics/10537773/Britain-will-become-biggest-economy-in-Europe.html
http://www.foodmanufacture.co.uk/Manufacturing/Scottish-biscuit-firm-boosts-capacity?
utm_source=copyright&utm_medium=OnSite&utm_campaign=copyright
http://www.qmu.ac.uk/marketing/press_releases/First-Scottish-Centre-for-Food-Development-and-Innovation-launches-at-QMU.htm
http://www.ons.gov.uk/ons/rel/rdit2/internet-access---households-and-individuals/2015/stb-ia-2015.html
http://www.portal.euromonitor.com.ezpoxy.napier.ac.uk/portal/analysis/tab (Passport)
http://www.portal.euromonitor.com.ezpoxy.napier.ac.uk/portal/analysis/related (Passport)
https://www.food.gov.uk/business-industry/allergy-guide/gluten

23. Bibliography
https://www.food.gov.uk/enforcement/regulation/foodstandardsact
http://www.foodstandards.gov.au/code/userguide/Documents/Userguide_Nutrition%20Claims_PartB_March12.pdf
http://ec.europa.eu/environment/industry/stationary/ied/legislation.htm
http://www.nairns-oatcakes.com/about-us/environment/nairns-caring-environment#Reducing-Waste-To-Landfill
http://www.theecologist.org/green_green_living/gardening/308454/know_your_oats_grow_your_own_grains.html
http://www.soilassociation.org/news/newsstory/articleid/7805/organic-market-shows-improved-growth-amidst-tumbling-
food-prices
http://www.bbc.co.uk/news/magazine-33486177