Scotland’s number one oatcake maker warns of ‘challenges’ as sales top £50 million

Nairn’s Oatcakes, which this year celebrates its 130th anniversary, has seen its sales bolstered by new product launches and growth in international markets.

The Edinburgh-based firm today released its annual accounts revealing profits grew to £4.9 million in 2024-25. Growth in domestic and international markets helped the business to grow sales by 6.6 per cent last year - from £47.5m to £50.6m.

The company now employs almost 240 people across sites in Edinburgh and Midlothian, after starting with just two people in 1896.

Increased consumer demand coupled with the successful launch of a Marmite and cheese flavoured oatcake was credited for the sales growth in the firm’s core product offering. Alongside steady growth in existing domestic and export markets, Nairn’s saw upticks in gluten-free product sales, including its biscuit and snack ranges.

However, the company’s annual report also outlined significant cost challenges to the business from national living wage increases, higher national insurance contributions for employers and additional taxes on packaging. While cost pressures are forecast to continue, the group believes it has enough brand strength to withstand these and capitalise on future opportunities for its oat-based products.

Colin Dingwall, managing director of Nairn’s Oatcakes, said: “Oatcakes remain a staple of healthy diets not just here in Scotland, but across the globe. As we look to celebrate 130 years of our business, we could not be prouder of those who help us to deliver high quality products and contribute to the excellent reputation of Scotland and the UK’s food and drinks industry.

“In recent years, we have worked hard to improve and expand our range of baked products through flavours and formats,” he added. “We continue to grow our gluten-free offerings so everyone can enjoy great tasting and healthy oat-based snacks.

“As we look forward, like many other businesses, our business faces challenges but we believe we have the brand and the team to continue to be successful in the future.”

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These days, Nairn’s Oatcakes ranks as the largest producer of oatcakes and oat-based products in the UK and one of the top gluten-free brands. Based at headquarters in Edinburgh and using wholegrain oats from the Scottish Borders, the company’s products are sold in more than 30 countries.

Last October, another of Scotland’s most iconic food brands, shortbread maker Walker’s, announced that its annual sales had exceeded £200m for the first time.

Accounts for the family-owned Speyside food producer showed that sales topped £201m in the year to the end of December 2024, marking a 9 per cent increase on the previous year. The firm said the “significant milestone” reflected the strength and appeal of the brand and the continued positive market response to its refreshed identity.

However, ongoing challenges from supply chain costs, inflation in key ingredients, rising labour bills and “logistical hurdles” resulted in an increase in the company’s operating cost base. In the face of those pressures, the firm continued its “positive collaboration” with suppliers to manage costs as effectively as possible.