Walker's Shortbread

WALKER’S SHORTBREAD

A LONG HISTORY OF SHORTBREAD POWERED BY INSIDE FOOD & DRINK

WALKER’S SHORTBREAD

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PROFILE

Walker’s Shortbread produces bakery products with a strong Scottish flavour. Nicky Walker, Managing Director, related the joys and challenges facing this family business to Phil Nicholls.

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Walker’s Shortbread

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oseph Walker opened a village bakery in 1898 with the intention of making the world’s finest shortbread. Almost 125 years later, packets of Walker’s shortbread in its signature red tartan packaging are staple features of Christmas celebrations the world over and are devoured from biscuit tins all year round.

Today, the fourth generation of the Walker family still run the business in the Scottish Speyside town of Aberlour. Joseph’s old bakery is now a test facility for Walker’s baked goods, where new products are evaluated to ensure a genuine taste of Scotland.

Production facilities and the range of merchandise have both expanded, but the core of the business would be instantly recognised by Joseph Walker.

The current Walker’s operation has four factories in Aberlour and two more in nearby Elgin. Base employee numbers are 1,200, but up to another 400 workers are required to deal with the extended Christmas demand for shortbread.

The 2021 turnover at Walker’s was £142 million, up from £132 million in 2020, but still below the pre-pandemic levels. Exports form a large proportion of the company’s business, amounting to £72 million in 2020, selling into over 120 countries.

The Walker’s range includes the trademark shortbread in a dizzying variety of options, from the classic shortbread finger to fans, rounds and seasonal novelty shapes. Walker’s also produces oatcakes, receiving a Royal Warrant for Shortbread & Oatcakes in 2017. The range includes an assortment of Scottish cakes and biscuits, from Ecclefechan tarts to Strathspey rich fruit cake.

To the fourth generation In January 2022, Nicky Walker was appointed Managing Director. As the fourth generation of the Walker family to run the business, he was very clear about what he was inheriting: “I think the biggest legacy has absolutely got to be the brand.”

The longevity of the Walker’s brand has its roots in the quality of the shortbread, baked today using much the same recipe as the one perfected by Joseph Walker.

“The current recipe is a variation on a theme,” Mr Walker explained. “There’s been little tweaks here and there, but intrinsically it’s the same four base products it has always been: flour, butter, salt and sugar. Only a little bit of salt and slightly less sugar nowadays, but absolutely the same recipe.

“We still manufacture shortbread in batch quantities, which we feel gives us a better control over the product. That is the traditional method, that’s how our whole business is set up. We still believe the knowledge and expertise of the bakers is invaluable to our product quality.”

Alongside Mr Walker’s new role, the board of Walker’s has slowly expanded in recent years. The appointment of a new financial director, a non-executive chairman and a commercial director broadened the range of experience and knowledge available to the company. “This is not the traditional Walker’s way of doing things,” said Mr Walker, “but it’s very much needed as we try and modernise somewhat our business approach.”

Modernisation is a delicate process at a company with a traditional product line.

Walker’s Shortbread

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Walker’s Shortbread

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WALKER’S SHORTBREAD

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PROFILE

“What we’ve done as a board is look at rationalisation, trying to slim down the number of SKUs we offer,” Mr Walker outlined. “That in turn allows us to put in more advanced automation in terms of packaging our products.”

One automated line at Walker’s uses pick-and-place robots for the packaging of shortbread fingers. Mr Walker admitted that the robots were “fascinating to watch,” and at first, were perhaps a little too mesmerising for some members of the board and production team!

Cracking supplier relationships Any company who has been in business for as long as Walker’s will have long-term relationships with suppliers. Mr Walker shared an example of this connection: “Some of our current suppliers have been working with us for 50 years. These companies might have changed names or been bought out, but intrinsically they’re still the same company.

“Take Meincke, for example, an oven manufacturer from Denmark who are now part of the Buhler Group; a GermanSwiss company, but it’s still the same guys in Denmark making the ovens.

We’ve been buying our ovens from them for 50 years.”

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Walker’s Shortbread

Close relationships are formed with every supplier to Walker’s. “We never ever compromise on the quality of ingredients,” Mr Walker said. “We source the very finest ingredients we can. When you’re dealing with such a traditional product, then there’s little margin for error, it has to be the very best we can do. That was the legacy left by our greatgrandfather: his goal was to make the finest shortbread possible and we’re all just following suit.”

When speaking specifically about one of the company’s most critical ingredients – sugar – Mr Walker said the company relies on sugar producer British Sugar.

“We consider British Sugar to be a trusted ingredient supplier, guaranteeing quality and reliable service,” he said.

Maintaining the long history of Walker’s is a challenge in troubled times.

Availability of seasonal workers in Speyside was adversely impacted by Brexit. Compared to the peak employment numbers, Walker’s must now operate at peak times with around 300 fewer workers compared to pre-Brexit numbers.

Assessing market trends is another challenge, according to Mr Walker: “One of the hardest things for us is trying to choose between a trend and a fad: a fad is

not worth the effort following, but a trend is something we should be part of.”

Walker’s products are currently available in gluten-free options, with many products suitable for vegetarians and Kosher OUD certified.

Overcoming supply bugbears Global supply issues have impacted Walker’s Shortbread. “The availability and price volatility across all markets has been an absolute shocker!” Mr Walker remarked.

“Prices last year were sky-high: traditionally, a container of tins coming in from China was about $4,000 before those supply issues, in June last year the cost was up to around $18,000.”

When the suppliers also suffer logistic problems, then there is a knock-on effect.

“Global supply issues create lots and lots of challenges,” Mr Walker admitted, “You can do the very best you can in running your business, but it’s the factors that you can’t control that are the biggest bugbears.

It doesn’t take much working out to know that if a commodity or service price increases and you want or need the commodity, then you’ve got to pay the asking price: that’s just where we are right now.”

Alongside supply issues, Walker’s is also addressing environmental sustainability.

Joe and Jim - Founders

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Walker’s Shortbread

WALKER’S SHORTBREAD

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PROFILE

As a long-standing family-run business embedded in beautiful Speyside, the company has pursued extensive environmental projects for many years. 1,300 lighting units have been replaced with LED lights and all six factories run energy-efficient condensing boilers and compressors. The company recently installed 80 solar panels on the roof of its newest factory, producing 12,000 kWh electricity per annum.

Walker’s headquarters is historic Aberlour House, built in 1838 with a Category A listing. After Walker’s bought the property, it embarked on an extensive renovation program. The estate woods are professionally managed by Scottish Woodlands and the wildlife rich grounds enjoy Site of Special Scientific Interest and Special Area of Conservation status.

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Walker’s Shortbread

The local community enjoys access to the grounds and orchards of Aberlour House. Mr Walker was clear on the company’s duties to Speyside: “We’re probably the biggest employer locally and with that comes a huge responsibility.

One of the core objectives for the company is to remain here. We want to be in Speyside, we want to be part of the community and we want to offer careers and jobs to as many local individuals as we possibly can.”

Iconic red tartan packaging The final strand of the Walker’s sustainability drive relates to the packaging where work is ongoing to reduce the amount of plastic used in both primary and secondary packaging. Recycled tin-

plate is used and cardboard for selected cartons is sourced through the Forest Stewardship Council.

“There’s no sense in marketing a lovely product inside poor packaging,” Mr Walker said. “The whole marriage between the packaging and product has to be just right.”

The packaging of Walker’s Shortbread is a hot topic within the company as part of its rebranding project. “The challenge the design company had was the fact that, from a design perspective, tartan is challenging to work with,” Mr Walker explained. “And we understand that, but why would we give away the crown jewels? So we had to find the right balance. As a result, the new tartan look is more contemporary.”

Nicky Walker, Managing Director

Joe and Jim - Founders

Due to the rebranding program, the iconic Walker’s tartan is reduced to trim on some of the boxes. The new style packaging relies more heavily on a white background, with the company name larger and topped by the Royal Warrant. Yet, the traditional red tartan remains firmly linked to the Walker’s Shortbread brand.

“The legacy left by my father and my uncle James is all about humility, hard work and honesty,” concluded Mr Walker. “Those three Hs are the principles that really have been steeped in the business. We’re immensely proud of the brand. We’re immensely proud of the business and we’re immensely proud of our staff. The generations have built the business, and the responsibility comes in ensuring that, as custodians, our generation can pass this legacy on to the next generation.” n

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www.walkersshortbread.com