How Scotland’s most famous shortbread maker’s new identity has generated £184 million
“The results were the culmination of several years of strategic planning, acknowledging the significant impacts of Brexit and the Covid-19 global pandemic in recent years” – Nicky Walker
Walker’s, the Scottish shortbread maker, has seen a rebranding pay off with a double-digit hike in sales as its iconic products wing their way to close to 100 markets globally.
Newly-filed accounts for the family-owned Speyside food business reveal that sales reached £184 million in the year ending December 31, 2023 - a 12 per cent increase on the previous year. The strategic roll out of the firm’s new brand identity across existing markets and distribution channels in 2023 and a strong performance during the festive season generated an uplift in sales of 11.4 per cent at home and 11.9 per cent in overseas markets.
Bosses said the sales growth had been reinforced by the brand’s increased presence in the global travel retail sector, with “targeted marketing activations”.
The business, which is based in Aberlour on Speyside and celebrated its 125th anniversary in 2023, saw its operating profits increase by £7.1m to £13.1m, a jump of 119 per cent. It is said to have achieved this through strategic forward planning, increased collaboration with suppliers and improved efficiencies within operational procedures. Alongside this, the business benefitted from “necessary price increase implementation” due to rising cost pressures.
Managing director Nicky Walker said the results were “testament to the continued hard work, dedication and commitment of our workforce” in what had been a challenging year for the business amid inflationary pressures and the continuing cost-of-living crisis.
“Whilst the business benefitted from certain favourable market conditions, the results were the culmination of several years of strategic planning, acknowledging the significant impacts of Brexit and the Covid-19 global pandemic in recent years,” he said.
“In particular, we are extremely pleased with the performance of Walker’s new brand identity - this has been a long-term project for the business and one that will continue throughout 2024 and 2025. I am delighted that customers around the world are responding so positively to the brand as they continue to enjoy Scotland at its finest.”
The uplift in overseas sales came as Walker’s products were exported to close to 100 countries. Meanwhile, the company’s operating margin returned to average pre-pandemic levels of 7.1 per cent.
Walker added: “Despite significant growth this year we remain cautious, with a projected slow-down of the market and uncertainty from external political and economic issues putting pressure on the business and our supply chains.
“Walker’s will continue to plan for the future and to serve our customers and consumers both locally and globally whilst remaining committed to our environmental and sustainability targets. We are proud to continue strengthening our operations while creating employment opportunities in the heart of the Scottish Highlands.”
Walker’s Shortbread, whose other products include oatcakes, remains an independent family concern to this day and the company is headed by the founder’s great-grandchildren. Four times winner of the Queen's Award for Export Achievement – now the King’s Awards – the business exports its distinctively packaged luxury bakery products globally and has become one of Scotland’s most recognisable brands.
In 2017, the firm was granted a Royal Warrant of Appointment from Her Majesty the Queen for the supply of shortbread to the Royal Household, following the granting of the Royal Warrant of Appointment by the Queen and Queen Mother in 2002 for oatcakes.
Walker’s had enjoyed a similar double-digit rise in sales in 2022 as the global travel market rebounded following the pandemic. Top-line growth was fuelled by the key UK and US markets, the former resulting from a strong post-pandemic festive season.
UK sales increased by some 23 per cent, from £62.6m to £77m, and export revenues rose by almost 10 per cent to £87.6m. Growth was underpinned by a successful rebrand, which launched in 2021 and continued through 2022.
However, “ongoing pressures” on global supply chains - intensified by the conflict in Ukraine - and a challenging inflationary environment impacted the business, as costs of raw materials rose and service levels were squeezed. As a result, operating profits dipped to £6m from £6.2m in the previous trading year. The company sought to mitigate these challenges by introducing “new production efficiencies and procurement strategies”, both of which contributed gains in the year.
Nicky Walker, who was appointed to the board in 2007 as production director, and is said to have been instrumental, working alongside his late father, Joe, in developing the company’s facilities in Aberlour and Elgin, said at the time: “It was pleasing to see demand return in a substantial way through 2022 after a couple of challenging years during the pandemic.
“The year presented numerous hurdles however, not least the continuing restrictions in the local labour market, but also substantial price increases coming from our suppliers. This volatility forced a review of all our incoming costs, with proactive conversations held with our entire supply chain.”
The company’s life in Charlestown of Aberlour began when Joseph Walker set up his bakers shop on the town’s High Street. Fast forward more than 125 years and the business has become a global byword for a Scottish delicacy that likely dates back to at least the 12th century.
The iconic Walker’s tartan design is based on the tartan of Clan Grant. Aberlour sits at the heart of the “country of the Grants”, on the banks of the River Spey, whose pure, fast-flowing waters are represented by the blue threads running through the company’s tartan.
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