Scottish Shortbread Company Transforms from Pipe Band to Global Exporter with UKEF Support

Dean’s of Huntly, a distinguished Scottish shortbread manufacturer, has successfully secured a £1 million trade loan with the backing of UK Export Finance (UKEF). This financial support is pivotal for the company as it seeks to scale up production to meet the growing export demand across various markets, including Europe, North America, Asia, and Australia.

The Aberdeenshire-based firm obtained the loan from the Bank of Scotland, which is supported by UKEF’s General Export Facility (GEF). This facility is designed to provide flexible financial solutions for small and medium enterprises aiming to enhance their export capabilities.

Investment in Sustainability and Efficiency

The GEF-backed funding will empower Dean’s to increase its production capacity and fulfil orders in international markets such as Australia, China, Japan, the US, and Europe. Additionally, the company plans to invest in solar panels and modernised equipment, aiming to improve operational efficiency and sustainability. These enhancements are expected to reduce the company’s carbon emissions by approximately 49.5 tonnes annually, which is comparable to a petrol vehicle making five trips around the globe.

This loan marks a significant step in Dean’s ongoing growth strategy, particularly following its recent acquisition of Duncan’s of Deeside, another Aberdeenshire shortbread producer. This move has resulted in an increase in local employment, expanding the workforce from 140 to 200 full-time positions.

Support from Government Officials

Anas Sarwar, the Minister for Trade, commented on the development, stating, “Scottish shortbread is savoured worldwide, and it’s wonderful to see UKEF supporting Dean’s of Huntly as they venture into new, exciting markets. By facilitating access to essential finance, UKEF is bolstering our exceptional food and drink sector to thrive, thereby fostering growth throughout the UK.”

Dean’s has its roots in 1975 when Helen Dean first began baking homemade shortbread to raise funds for the local Huntly Pipe Band. Since then, the company has witnessed a surge in global demand, with a significant portion of its revenue now derived from exports. Dean’s products are increasingly in demand for various festive occasions, from Christmas to Lunar New Year celebrations.

Comments from UKEF and Bank of Scotland

Lara McGrath, Export Finance Manager at UKEF, expressed pride in collaborating with Bank of Scotland to provide Dean’s the necessary cash flow to meet rising export demands while investing in the long-term viability of the business. “Dean’s has built a reputation for delivering premium shortbread that is enjoyed by customers across the globe,” she added.

Bill Dean, the CEO of Dean’s of Huntly, remarked, “The flexible support from UKEF and Bank of Scotland enables us to manage overseas orders and balance seasonal demand, all while continuing to invest in our production capacity and sustainability efforts.”

Encouraging Export Growth

Michael Thomson, Relationship Director at Bank of Scotland, highlighted Dean’s as a remarkable success story from Aberdeenshire. He noted, “From its inception in Huntly to its current status as a brand shipping across four continents, Dean’s has evolved into one of Scotland’s most recognised food brands.”

The UKEF-backed facility not only unlocks new export opportunities for Dean’s but also grants the company the flexibility it requires to finance international orders, invest in production, and sustain its growth, which in turn supports job creation in the North East.

UKEF’s commitment to supporting smaller businesses like Dean’s is part of a broader strategy to enhance UK exports. The organisation aims to assist UK firms in securing over £12.5 billion in new export contracts by 2029 through its leading export finance offerings. In the last financial year, UKEF provided more than £11 billion in loans, guarantees, and insurance to help UK companies expand their export activities, supporting up to 85,000 jobs and contributing approximately £6.4 billion to the economy.