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2022 2023 Annual Report & Yearbook

THANK YOU TO ALL OF OUR INDUSTRY SUPPORTERS: STRATEGIC PARTNER

“ OUR ANNUAL REPORT AND YEARBOOK SERVES AS A CONTINUATION OF A TRADITION THAT DATES BACK TO 1894, ALLOWING US TO REFLECT AND CELEBRATE THE PAST YEAR’S ACHIEVEMENTS.” LESLEY CAMERON CEO

A message from our President

A message from our CEO

Finance Report 06 Operational Review 14 Focus on Training

Events & Awards

Member Services 32 Governance 34

CONTENTS

ANNUAL REPORT & YEARBOOK 2022/2023

A MESSAGE FROM OUR PRESIDENT

“ AS A PROUD BAKER, I HAVE ALWAYS CONSIDERED HOLDING THIS CHAIN OF OFFICE THE GREATEST PRIVILEGE AND HAVE THE UTMOST RESPECT FOR MY FELLOW BAKERS.” IT’S HARD TO BELIEVE THAT I AM ABOUT TO ENTER MY LAST SIX MONTHS AS THE PRESIDENT OF SCOTTISH BAKERS. IT HAS BEEN AN INCREDIBLE 18 MONTHS IN WHICH I HAVE BEEN PROUD TO SERVE THE MEMBERS OF THIS FINE ASSOCIATION. I began my term as President as life was beginning get back to some form of normality. However other factors began to affect our industry – the war in Ukraine, soaring energy costs, labour shortages and rising commodity prices, continued to make it a challenging business environment. But, we have all proven time and again that we are a resilient trade, and I will never cease to be impressed by your passion and determination. These turbulent times have seen us having to deal with many changes in the political and policy landscape and I, along with former CEO Alasdair Smith, engaged in much public affairs work. I was privileged to be able to represent the association on various news outlets and to ministers at both Westminster and Holyrood. Last December, we hosted Cabinet Secretary, Mairi Gougeon MSP at McGhee’s Bakery, which gave us the opportunity to discuss pressing issues. The primary topic of conversation was just how challenging the

current economic environment is for Scottish Bakers members with soaring energy and ingredients costs placing a significant strain on bakery owners. This is coupled with a very challenging recruitment market with many businesses struggling to find new staff and to retain existing skilled employees. I have been encouraged that questions have been raised in both parliaments, as a result of this important work. Rightly, these issues have been at the forefront of my presidential duties, however I have also had the opportunity to represent the association at various industry events over the last year. These have included those of our sister associations across the rest of the UK and Ireland. It has been fantastic to make these connections again with friends across the baking industry. This year also saw a full return to our own events, including our annual conference where the programme was full of content reflecting the positive outlook of our sector which is keen for continued growth against the backdrop of ongoing challenges. The conference also saw us say a fond farewell to Alasdair Smith, who had been Chief Executive of Scottish Bakers since 2018. His professionalism and dedication to our industry was outstanding and his leadership through Covid, meant we were at the forefront of challenging, questioning and

deciphering the legislation and he provided bakers with sage advice and guidance. Whilst it is good to reflect on the past year, we must now look to the future, as the association enters and new chapter under the direction of CEO, Lesley Cameron. Having worked closely with Lesley since she joined the association in September 2023, I am excited about this next chapter, ensuring we are future proofed for the next generation of bakers. As a proud baker, I have always considered holding this chain of office the greatest privilege and have the utmost respect for my fellow bakers. I hope to have the opportunity to meet with more of you in my last few months as President. I would like to take this opportunity to thank my Vice President, Michelle Phillips and the rest of the board of directors for their support, valuable input and service to the association. We all continue this work on behalf of the membership and “for the good of all.”

IAN MCGHEE President

ANNUAL REPORT & YEARBOOK 2022/2023

A MESSAGE FROM OUR CEO

“ I AM EXCITED TO TAKE THE REINS OF THIS ASSOCIATION, WHICH IS STEEPED IN HISTORY. I AM PROUD TO BE MAKING MY OWN PIECE OF THIS HISTORY, BY BEING THE FIRST WOMAN TO BE APPOINTED TO THE ROLE OF CEO.” IT’S A PLEASURE TO WELCOME YOU TO OUR ANNUAL REPORT AND YEARBOOK 2022-23. MUCH OF THIS CONTENT REFLECTS THE HARD WORK AND ACHIEVEMENTS BY THE SCOTTISH BAKERS TEAM, UNDER THE LEADERSHIP OF ALASDAIR SMITH. I would like to add my own thanks to Alasdair, who clearly dedicated himself to Scottish Bakers. I am excited to take the reins of this association, which is steeped in history. I am proud to be making my own piece of this history, by being the first woman to be appointed to the role of CEO. As President Ian McGhee has reflected in his introduction, the trade continues to face significant challenges, however I have no doubt that all members remain committed to their businesses and their craft. In the pages that follow we’ve set out our review of the last year and highlighted some of our key achievements. The financial result of 2022-23 has seen an increase in Scottish Bakers income of 15.8% versus 2021/22. We are starting to see a return to pre-covid income levels. This is a result of the exceptional hard work and dedication from our small team. Their passion for our industry only further supports the growth of the sector.

We continue to support our members, providing regular updates via email with a diverse range of news, as well as updates on legislation, HR support and guidance available to them via their membership. As Ian intimated in his introduction, our public affairs and lobbying work has been at the forefront of activities over the last year. We continue to build our relationship with British Baker magazine and other trade and national media outlets. The demand for our apprenticeship training services has once again seen improvement and the team finished the financial year having registered 330 apprentices, which delivered a significant contribution to the associations closing financial result. This year has seen a return in full to our events calendar, which was pleasing, as we know how important our competitions, events and conference are to our members. Helping our members come together is something the association has been committed to since 1891.

Our Annual Conference and Awards weekend took place in May 2023 on the same weekend as the King’s Coronation. The programme focused on key current topics for the industry. As always, our thanks must go to our wonderful range of sponsors who ensure we can run such high-quality events for our members. Our thanks go to President Ian McGhee for being a figurehead for the association, particularly during the interim period prior to my appointment, and for guiding me through my first few months in the job so far. I look forward to building on the firm foundations clearly demonstrated in this report. Scottish Bakers remains committed to its members and I look forward to working with you all to future proof the industry.

LESLEY CAMERON CEO

We managed to run the Scotch Pie Awards in full for the first time since 2019/20. We welcomed back award winners and sponsors to the Westerwood Hotel to see Carol Smillie announce butcher James Pirie & Son as the ultimate Scotch Pie winner.

FINANCE REPORT

THIS REPORT COVERS OUR AUDITED ACCOUNTS FOR SAMB, TRADING AS SCOTTISH BAKERS, FOR 12 MONTHS FROM 1ST APRIL 2022 TO 31ST MARCH 2023.

ANNUAL REPORT & YEARBOOK 2022/2023

FINANCE REPORT

THE COMBINED TURNOVER DURING THIS 12-MONTH FINANCIAL PERIOD WAS £942,598, RESULTING IN AN OPERATING SURPLUS OF £57,012. Total income has improved 2022-23 compared with the previous year, with the main increase coming from additional conference and events income. Total operating income for the year was £1,091,273 compared with just £942,598 in 2021-22.

TOTAL INCOME OF SCOTTISH BAKERS PER YEAR 2012 - 2023 2,500,000

An operating surplus of £51,181 was recorded along with a loss on the value of our investments, overall providing a £14,833 loss.

2,000,000

The balance sheet is showing a net asset figure of £1,967,767, down from £1,979,630 on the previous year.

1,500,000

Investments are shown in the accounts at market value of £1,139,400 on 31 March 2023.

1,000,000

500,000

0 2019/20

2020/21

2021/22

2022/23

2019/20

2020/21

2021/22

2022/23

2018/19

2017/18

2016/17

2015/16

2014/15

2013/14

2012/13

TOTAL NET PROFIT OF SCOTTISH BAKERS PER YEAR 2012 - 2023 400,000 300,000 200,000 100,000 0 -100,000 -200,000 2018/19

2017/18

2016/17

2015/16

2014/15

2013/14

2012/13

ANNUAL REPORT & YEARBOOK 2022/2023

FINANCE REPORT

TRAINING CONTINUES TO DELIVER OVER TWO THIRDS OF SCOTTISH BAKERS INCOME, THROUGH THE ACTIVITIES OF NATIONAL FOOD AND DRINK TRAINING (NFDT), OUR SPECIALIST TRAINING ARM. NFDT DELIVERS A RANGE OF FOOD AND DRINK APPRENTICESHIPS ACROSS THE UK THROUGH OUR NETWORK OF REGIONALLY BASED TRAINING ADVISORS.

INCOME TO 31ST MARCH 2023 1. Subscriptions 2. Member services 3. Events 4. Training

13% 1% 16% 70% 3 2

These advisors work hard to preserve and pass on essential craft and technical skills to the workforce that deliver productivity and efficiency gains to businesses.

The bulk of this activity is publicly funded through apprenticeship training contracts secured from Skills Development Scotland (SDS) and The English Skills Funding Agency (ESFA). Recruitment of apprentices continues to improve, however we still fell slightly short of our contracted volume and financial target. Volumes in England increased steadily throughout the year. Scottish Bakers Benevolent Fund Donations to the Benevolent Fund consisted of donations made at the Scottish Bakers Glasgow Dance. Investment income for the year to March 2023 was £30,625. To the year ending March 2022 investment gains totalled £28,853. The fund made payments to beneficiaries totalling £6,700. This is up from £5,464 in the year to March 2022 following a review of beneficiaries. The Fund had a gain in the net movement in funds of £16,130.

PROJECT INCOME TO 31ST MARCH 2023 1. SDS 2. England 3. Awarding Body 4. Other Projects 5. Member Services 6. Other Income

54.56% 26.52% 0.30% 2.40% 16.22% 0.00%

5 3

The Balance sheet is showing a balance of £711,238.

ANNUAL REPORT & YEARBOOK 2022/2023

FINANCE REPORT

SAMB DETAILED PROFIT AND LOSS ACCOUNT COMBINED YEAR ENDED 31 MARCH 2023

2023

2022

TURNOVER

1,091,273

942,598

Administrative expenses

1,061,833

917,103

29,440

25,495

Other operating income

31,517

OPERATING SURPLUS/(DEFICIT)

29,440

57,012

Income from fixed asset investments

1,408

865

Interest receivable and similar income

10,587

793

41,435

58,670

Gain/loss on revaluation of investments

-56,268

41,005

SURPLUS BEFORE TAXATION

-14,833

99,675

Tax on surplus

SURPLUS FOR THE FINANCIAL YEAR

-14,833

99,675

Retained earnings at beginning of year

1,979,630

1,879,955

RETAINED EARNINGS AT END OF YEAR

1,964,767

1,979,630

ANNUAL REPORT & YEARBOOK 2022/2023

FINANCE REPORT

SAMB BALANCE SHEET - AT 31 MARCH 2023 COMPANY NUMBER SC181670 2023

2022

Tangible assets

188,333

179,613

Investments

1,139,400

1,202,444

1,327,733

1,202,444

Stocks

4,996

4996

Debtors

235,422

287,399

Cash at bank and in hand

743,138

725,040

983,556

1,017,435

Amounts falling due within one year

343,522

419,862

NET CURRENT ASSETS

640,034

597,573

TOTAL ASSETS LESS CURRENT LIABILITIES

1,967,767

1,979,630

1,967,767

1,979,630

1,967,767

1,979,630

FIXED ASSETS

CURRENT ASSETS

CREDITORS

RESERVES Income and expenditure account

ANNUAL REPORT & YEARBOOK 2022/2023

FINANCE REPORT

SCOTTISH ASSOCIATION OF MASTER BAKERS BENEVOLENT FUND STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2023 2023 UNRESTRICTED FUND

2022 TOTAL FUNDS

Donations

4,000

9,252

Investment income

34,049

TOTAL

38,049

7,079

Raising funds

2,639

1,615

Charitable activities

6,700

5,464

TOTAL

9,339

7,079

NET GAINS ON INVESTMENTS

-48,182

28,853

NET INCOME

-19,472

31,026

Total funds brought forward

695,108

664,082

TOTAL FUNDS CARRIED FORWARD

675,636

695,108

INCOME AND ENDOWMENTS FROM

EXPENDITURE ON

Grants payable in futherance of the charity’s objects

RECONCILIATION OF FUNDS

ANNUAL REPORT & YEARBOOK 2022/2023

FINANCE REPORT

SCOTTISH ASSOCIATION OF MASTER BAKERS BENEVOLENT FUND BALANCE SHEET AT 31 MARCH 2023 2023 UNRESTRICTED FUND

2022 TOTAL FUNDS

678,992

694,790

724

3,378

Amounts falling due within one year

-4,080

-3060

NET CURRENT ASSETS

-3,356

318

TOTAL ASSETS LESS CURRENT LIABILITIES

675,636

695,108

NET ASSETS

675,636

695,108

Unrestricted funds

675,636

614,525

TOTAL FUNDS

675,636

695,108

FIXED ASSETS Investments

CURRENT ASSETS Cash at bank

CREDITORS

FUNDS

STRATEGY

“ SCOTTISH BAKERS MUST SHOW LEADERSHIP, AND THE PRIMARY GOAL IS TO SECURE A PROFITABLE AND SUSTAINABLE BAKERY SECTOR THAT MEETS SOCIETY’S NEEDS.”

ANNUAL REPORT & YEARBOOK 2022/2023

STRATEGY

STRATEGIC REVIEW

LOBBYING AND ADVOCACY

OUR STRATEGIC PILLARS

Scottish Bakers has been active in representing members needs to government and other key policy makers.

The seven pillars of our Strategic Framework continue to serve Scottish Bakers’ needs, providing focus for our activities. Scottish Bakers has continued to put its members at the heart of its work.

More than ever before, lobbying and advocacy has become an essential activity for the association, and we’ve significantly increased our efforts in this area. We’ve had serious issues to contend with and we’ve been more active than ever before lobbying the Scottish and UK governments for action to support members facing unprecedented pressures. This goes wider than simply demanding action on soaring energy costs, for example, it extends to requesting recognition of our members as essential to our critical national infrastructure, that new legislation and regulations are at least put on hold until our wider economic circumstances change and that action is taken to help members recruit much-needed staff. We have been grateful to other food trades bodies for their support on some of these matters where collective appeals can sometimes ensure a more powerful message is delivered to policy makers and stakeholders. We must not forget that there’s a general cost-of-living crisis which is placing pressure on our customers and staff.

Like all businesses we have adapted how we work, and have had to look closely at our costs, making economies wherever possible to minimise the burden of overheads on the association. We continue on a reduced headcount of staff following changes made during the pandemic and continue to outsource our financial management arrangements. Our members are also facing unprecedented pressures on costs and staffing. Energy, fuel, and key ingredients are all increasing significantly in price, leading to higher prices to consumers and squeezing margins. We are mindful of continued pressure on these inputs. Meanwhile, the ongoing cost-of-living crisis continues to affect the workforce and consumer confidence. Scottish Bakers must show leadership, and the primary goal is to secure a profitable and sustainable bakery sector that meets society’s needs.

The role of Scottish Bakers and the range of economic, environmental, and social benefits it can deliver will vary, but collectively Scottish Bakers should progress an environment in which members: • produce high quality food and products that customers want • embrace change and seek new market opportunities • take responsibility for climate ambitions and a flourishing environment • contribute to key objectives on society’s health and well-being • engage proactively with the association and its work, “for the good of all” to drive change and growth.

OUR MEMBERS ARE ALSO FACING UNPRECEDENTED PRESSURES ON COSTS AND STAFFING. ENERGY, FUEL, AND KEY INGREDIENTS ARE ALL INCREASING SIGNIFICANTLY IN PRICE, LEADING TO HIGHER PRICES TO CONSUMERS AND SQUEEZING MARGINS.”

ANNUAL REPORT & YEARBOOK 2022/2023

STRATEGY

SCOTTISH BAKERS STRATEGIC AIMS (2022/23)

MEMBERSHIP

We will understand, build and celebrate all aspects of Scottish Bakers members; delivering tangible value and benefits that both raise the profile of the sector, and support and promote sustainability and growth.

TRAINING National Food and Drink Training will deliver programmes to develop the skills, knowledge and talent of the workforce across the bakery sector and the wider food and drinks manufacturing and processing industry to support productivity gains, efficiencies and business growth.

COMMUNICATIONS We will communicate effectively to: heighten public visibility of our members and our work; use our influence to inform policy change, and; maximise the value of our member services to deliver sustainability and growth.

FINANCIAL MANAGEMENT We will maximise the effectiveness of our financial operations by prudent and ethical management of reserves, identification and delivery of efficiencies and careful monitoring of our financial position and progress against targets.

KNOWLEDGE We will be the definitive voice of Scotland’s baking sector, and a reliable and trusted source of information and intelligence for, and about, the industry in Scotland, including on: • legislation, regulation, compliance and public consultation issues; and • economic and labour-market intelligence • sector career opportunities & pathways • our own performance

PEOPLE We will invest in and support, the right people, policies, procedures and resources required to deliver on our ambitions in an efficient and effective manner that adds value internally.

BUSINESS DEVELOPMENT We will nurture and establish business, local, regional and national relationships that deliver mutual benefits and positive impacts for the sector and our business.

FOCUS ON TRAINING

ANNUAL REPORT & YEARBOOK 2022/2023

FOCUS ON TRAINING

NATIONAL FOOD AND DRINK TRAINING (NFDT) IS THE TRAINING ARM OF SCOTTISH BAKERS. WE SPECIALISE IN THE PROVISION OF APPRENTICESHIPS TO THE UK’S FOOD AND DRINK MANUFACTURING INDUSTRY. NATIONAL FOOD AND DRINK TRAINING’S ONGOING COMMITMENT TO EDUCATION AND SUSTAINABILITY OF THE SKILLS WITHIN THE FOOD & DRINK SECTOR THROUGHOUT THE UK CONTINUE TO AID THE RECRUITMENT AND RETENTION OF EMPLOYEES WITH INVALUABLE FUNDING SUPPORT FROM SKILLS DEVELOPMENT SCOTLAND (SDS) AND THE DEPARTMENT FOR EDUCATION (DFE). The UK Food & Drink sector is beginning to re-emerge from Covid but is faced with ever changing demands and rising costs along with a current vacancy rate of 4.8% which is down from a high of 7.9% in 2022. In context the UK manufacturing sector has a current vacancy rate of 2.9%. Staff recruitment and retention has never been more important in the minds of employers, Scottish Government or Scottish

Bakers. The sector remains competitive in pay and conditions, yet we can still do more on promoting a “Positive Career Destination”.

We completed the contract year by claiming £426,474 and registered 217 new apprentices onto programme.

Apprenticeships can help deliver productivity gains by upskilling new and existing employees to each business.

Over the course of the year, we have worked with 75 employers in Scotland from Caithness to the Borders, delivering Modern Apprenticeships in bakery, production, food manufacture excellence, operations, distribution, dairy, food sales and service and supply chain.

Whilst apprenticeships continue to increase, although not to pre-Covid levels, standards, quality of service and delivery continue to be monitored and maintained internally and externally on an annual basis by our Funders, Awarding Organisations and Government Bodies in Ofsted and Education Scotland. Our original contract for 2022-2023 was for 418 starts and worth £547,860. With employer confidence still low coming out of Covid and the added restraints due to rising costs, Brexit, and the war in Ukraine depleting wheat reserves, led to us handing back a significant amount of funding and start places.

Our continuing success is down to the commitment, determination, and drive of the entire NFDT and Scottish Bakers teams, employers who support the programmes and most of all, the apprentices who continue to value their achievements, drive themselves forward and excel in their chosen role daily. We salute you all!

SCOTT ANDERSON

Training & Quality Manager

ANNUAL REPORT & YEARBOOK 2022/2023

FOCUS ON TRAINING

SCOTLAND THE FIGURES BELOW ILLUSTRATE THE IMPACT OF RECENT CHALLENGES ON OUR APPRENTICE VOLUMES OVER THE LAST 6 YEARS. SDS STARTS 500 450 400 350 300 250 200

443

437

415

330

150 100

217 126

50 0

2017/18

2018/19

2019/20

2020/21

2021/22

2022/23

STARTS ENROLLED

STARTS

STARTS PER FOOD & DRINK OPERATIONS PATHWAY WERE AS FOLLOWS:

MALE:

97 9.8% OF STARTS WERE PROGRESSIONS 1.23% OF STARTS WERE RE-ENTRANTS 60.25% OF ALL STARTS ARE FEMALE 32.38% OF ALL STARTS ARE AGED 16-24

FEMALE:

147

CRAFT BAKERY SKILLS SCQF 5

28.29%

DAIRY INDUSTRY SKILLS SCQF 5

2.87%

DISTRIBUTION SKILLS SCQF 5

6.97%

FOOD SALES AND SERVICE SKILLS SCQF 5

24.19%

PRODUCTION AND PROCESSING SKILLS SCQF 5

9.8%

BAKERY SKILLS SCQF 6

1.64%

FOOD AND DRINK OPERATIONS SCQF 6

22.13%

SUPPLY CHAIN SKILLS SCQF 6

0.41%

FOOD MANUFACTURING EXCELLENCE SCQF 5 & 6

3.70%

ANNUAL REPORT & YEARBOOK 2022/2023

FOCUS ON TRAINING

“ OUR OVERALL RETENTION RATE IN SCOTLAND FOR THE YEAR GIVES NFDT A PROGRAMME SUCCESS RATE OF 80% AGAINST AN SDS BENCHMARK AVERAGE OF 74%” SDS INCOME £800,000 £700,000 £600,000 £500,000 £400,000 £300,000

£706,533

£648,757

£663,217

£599,042

£200,000

£426,474

£100,000

£224,981

£ 2017/18

2018/19

2019/20

2020/21

2021/22

2022/23

KEY STATISTICS

STARTS 2022/23

Progressions 24

Starts 217

Re-Entrants 3

STARTS BY AGE GROUP

25+ 165

20-24 35 16-19 44

ENGLAND We continue to deliver Apprenticeship Standards via the Department for Education (DfE) to levy and non-levy employers. Throughout the year we worked with 20 employers which included Tesco and Country Style Foods at multiple sites. We had 60 learners enrolled throughout the year on our programmes.

Our dedicated team of three Advisors continue to maintain quality of provision and standards as gauged by OFSTED, DfE and our awarding Organisations of FDQ, Highfield AB & City & Guilds

Up to March 2023 we drew down £242,415 in Apprenticeship funding.

We continue our working partnerships with the Craft Bakers Association (CBA) and the Federation of Bakers (FOB) with training and development to the sector.

ANNUAL REPORT & YEARBOOK 2022/2023

FOCUS ON TRAINING - APPRENTICESHIP CASE STUDY

FERGUSONS BAKERY AND LAMOND THE BAKERS

FERGUSONS MOVED TO THEIR CURRENT SITE IN KILMARNOCK IN SEPTEMBER 2001 AS A 100% WHOLESALE BUSINESS, PRODUCING A RANGE OF FERMENTED BAKERY PRODUCTS FROM MORNING ROLLS TO FINGERS ROLLS AND A SELECTION OF BUFFET ROLLS. June 2009 saw the acquisition of Lamond the Baker which produces a range of confectionary products as well as pancakes, crumpets and scones. Between both sites they supply customers throughout Scotland utilising their fleet of 19 vans. They employ 80 people in total covering admin, production and delivery drivers. Fergusons Bakery has worked with NFDT since October 2012. In that time 26 employees have achieved a qualification, whilst Lamonds has worked with NFDT since August 2020 seeing 10 employees achieving their qualification. A further two employees at each site are now working towards their qualification (November 2023).

Why Choose Apprenticeship Training? Managing Director, Simon Brown was motivated to give his employees a better understanding of the processes they carry out. As Simon explains he want them to learn, “not just how but why”. Simon adds, “It also helps raise the standard of the employees we have on site. You very rarely find skilled people to join your team. This helps bridge that gap by training our own.”

He has witnessed a change in attitude of his employees, saying,” I have seen a much more open attitude to change and way of working. Most of the candidates can now work alone with much more confidence as they know how and why they are carrying out tasks.”

Getting Started Simon consulted with NFDT to create a personalised training programme by selecting the best modules for each candidate. This was to ensure that the programme suited the individual, regardless of their level and skillset. He adds, “It’s a very flexible programme.”

He says, “Staff are motivated to do the right thing because we’ve helped them gain the right answers through training. Staff don’t have to wait to be told as they know the next stages in the process which leads to efficiency and less wastage. This all leads to improved profitability.”

A Better Workforce Simon knows the importance of investing in staff training. “When you invest in training the people around you, they grow. They respect that you’re doing it for them as well as the business. Training is paramount to being successful. We are very lucky to have this resource available to us.”

A Better Business Simon can clearly see the benefits Modern Apprenticeship training has brought to the business.

ANNUAL REPORT & YEARBOOK 2022/2023

FOCUS ON TRAINING - APPRENTICESHIP CASE STUDY

SIMMONS THE BAKERS

ESTABLISHED IN 1838 BY AUNT ELIZA, SIMMONS REMAINS A FAMILY BUSINESS IN HATFIELD TO THIS DAY. ONE BAKERY SITE SUPPLIES 43 OF THEIR OWN SHOPS AND A SMALL HANDFUL OF WHOLESALE CUSTOMERS. THEY HAVE 700 EMPLOYEES. They’ve learnt what makes a difference: making sure everything in their shops is as fresh as it can be, for example; using genuine French flour and Belgian butter in their croissants; and making the crustiest rolls possible with a blend of two different flours. National Food & Drink Training (NFDT) has been delivering training in Simmons since February 2018 with four employees completing their course to date.

Why Choose Apprenticeship Training? To the team at Simmons, it felt like baking was becoming a dying art and they had a couple of decades where they were seeing a lack of qualified and skilled bakers coming through. Apprenticeships and training were the optimum ways of remedying this, giving their staff useful skills and real-world knowledge. Getting Started Simmons collaborated with NFDT to write a departmental rotation plan that gives trainees insight into every department of our bakery, matched with the requirements of the training standard. Trainees leave each stint of the scheme with valuable skills and well-enforced knowledge. Sam Axworthy, Project Manager at Simmons says, “This is now tried-and-tested and works well every time.”

A Better Workforce All of their apprentices have been pushed hard to achieve the best possible results which has led to them gaining vast amounts of knowledge along the way, bringing the best in their staff. Sam adds, “Since carrying out training, it’s become clear how much our other staff have enjoyed teaching and inspiring young talent. Shadowing colleagues is an extremely effective way of passing on relevant knowledge and we’re proud to have such a receptive and helpful workforce.“ A Better Business Sam feels that the training has given departmental managers and supervisors extra motivation whilst keeping training efficient. This teaches good practices from the outset, improving productivity and reducing wastage.

EVENTS & AWARDS

2023 PROVIDED PLENTY OF OPPORTUNITY FOR MEMBERS TO GATHER AND CELEBRATE OUR GREAT TRADE.

ANNUAL REPORT & YEARBOOK 2022/2023

EVENTS & AWARDS

WORLD CHAMPIONSHIP SCOTCH PIE AWARDS

AT THE WORLD CHAMPIONSHIP SCOTCH PIE AWARDS JUDGING DAY ON 16TH NOVEMBER 2022, NEARLY 500 OF THE BEST PIES ON THE MARKET WERE DELIVERED TO DUNFERMLINE BY 78 OF THE BEST BUTCHERS, BAKERS AND OTHER PIE MAKERS WHERE THEY WERE PUT TO THE TEST BY 60 PIE PROFESSIONALS WHO SELECTED OUR CATEGORY WINNERS AND, OF COURSE, OUR ULTIMATE WINNER WHO WAS TO BE CROWNED WORLD SCOTCH PIE CHAMPION FOR 2023.

Whilst it was a butcher who took the top prize, it was a great showing from the bakers, who won 7 of the Diamond Awards! Check out all of the winners on our competition website under each of the categories HERE.

Judges were worked hard once again as they put each and every entry to the taste, touch, appearance and smell test across all the categories from the iconic Scotch Pie to Football Pies & Savouries, Macaroni Pies, Steak Pies, Sausage Rolls, Cold Savouries, Hot Savouries, Vegetarian Savouries, Haggis Savouries, Bridies and Apple Pies.

We’d like to thank our awards partner BAKO Group and all of our category sponsors: AAK, Andrew Ingredients, Carr’s Flour, Dalziel, DMD (2000), Fleming Howden, Macphie, Marshalls Foods and Rondo. Their support of the competition this year has been invaluable.

Head Judge Ian Nelson said, “Each year I expect great looking pies made expertly from quality ingredients. I want the judges to see, smell and taste traditional techniques but I also want to see innovation and exciting new flavour combinations coming through.” The competition offers proud pie makers across Scotland and from further afield the opportunity to be recognised as producers of the highest quality savoury products and apple pies on the market, with awards given to the best products in each category. We received some fantastic media coverage of the judging event, including the Channel 5 evening news and the front page of the Herald newspaper. Our social media feeds were also brimming with content. There could of course be only one winner of crowned World Scotch Pie Champion and once again that accolade went to butcher, James Pirie & Son. The Angus butcher became the first to lift the title three times, plus the title of Champion of Champions which we ran during the pandemic.

Carol Smillie who presented the awards to the winners, said, “I am always delighted to present these awards, meet so many faces old and new and of course all those delicious pies! These bakers and butchers consistently provide such high quality and the new faces tell me that the sector continues to thrive and prosper with more professionals than ever throwing their hats into the ring. Well done to all our winners.”

ANNUAL REPORT & YEARBOOK 2022/2023

EVENTS & AWARDS

SCOTTISH BAKER OF THE YEAR OFFICIAL LAUNCH

WE WERE DELIGHTED TO RETURN TO INVERNESS, THE HOME OF 2022/23 SCOTTISH BAKER OF THE YEAR, THE THREE LITTLE BAKERS TO LAUNCH THE 2023/24 COMPETITION . A group of students from UHI Inverness College, studying professional cookery and hospitality took part in a cake decorating challenge, overseen by our ambassador and couture cake specialist, Mich Turner MBE.

On the day, the students were able to call upon advice from the then current Scottish Baker of the Year, Paddy Murphy from The Three Little Bakers, Scottish Bakers, President and Director of McGhees Bakery, Ian McGhee, and Vice-President Michelle Phillips of Edinburgh-based Mimi’s Bakehouse was also on hand to offer her top tips. Whilst all of the students were amazing, the judges awarded the best cake to Tetiana Potapko with Mich saying “Tetiana’s interpretation of the brief with exceptional

hand finishing skills impressed the judges. Her attention to detail, technical ability and quality of finish set her apart in a close run contest.” Tetiana relocated to Aviemore last year from Ukraine and had recently moved to Inverness to continue her studies. The event officially kicked of the voting period and entry window for the competition, where customers vote for their favourite baker and bakers have an opportunity to enter their star products for judging.

ANNUAL REPORT & YEARBOOK 2022/2023

EVENTS & AWARDS

SCOTTISH BAKER OF THE YEAR AWARDS 2023/24

THIS YEAR SAW A HUGE INCREASE IN THE NUMBER OF PRODUCTS ENTERED COMPARED TO THE 2022/23 COMPETITION, WITH OVER 630 INDIVIDUAL PRODUCTS ENTERED FOR JUDGING ACROSS THE DIFFERENT CATEGORIES. We had 50 industry judges assess each of the entries under the watchful eye of head judge Robert Ross. From the results of the regional judging, bakers who had won at least a bronze award were then eligible to enter the business awards that would ultimately decide this year’s Scottish Baker of the Year. Our panel this year was made up of senior executives and managers from our business category

sponsors, who reviewed each of the written submissions and interviewed each entrant via video call. The passion and hard work from them all were clear to see, so it wasn’t an easy decision and the final results incredibly close. But, there could only be one winner crowned the ultimate title of Scottish Baker of the Year, and this year it went to Mimi’s Bakehouse of Edinburgh. They finally lifted the silver rolling pin after coming so close over many years. It is the first time a bakery café of the year winner has been named the overall winner too, so a bit of Scottish Bakers history was made that night too! “We are beyond overwhelmed by this achievement after 9 years of entering and being a part of Scottish Bakers Awards” said founder and owner of Mimi’s Michelle Phillips.

“We’d like to thank our incredible staff, customers and partners who work hard every day as part of our extended family. “As we continue to push forward with new ideas and concepts and celebrate being an award-winning cafe bakery, we hope to make our family business an Edinburgh institution for generations to come.” Our congratulations go to each and every awards winner but particular mention to our Craft Baker of the Year, Babyfaced Baker, our Retail Craft Baker of the Year, JG Ross (Bakers) Ltd and our Wholesale Baker of the Year, Reid’s of Caithness. You can see all of the winners on our bakeroftheyear.scot website.

ANNUAL REPORT & YEARBOOK 2022/2023

EVENTS & AWARDS

SCOTTISH BAKER OF THE YEAR AWARDS 2023/24

SCOTTISH BAKER OF THE YEAR 2023/24 NATIONAL AWARD WINNERS Scottish Baker of the Year 2023/24

Mimi’s Bakehouse

Bakery Café of the Year

Mimi’s Bakehouse

Craft Baker of the Year

Babyfaced Baker Ltd

Retail Craft Baker of the Year

J G Ross (Bakers) Ltd

Wholesale Baker of the Year

Reid’s of Caithness

Best Biscuit in Scotland

Reid’s of Caithness – Jam Heart

Best Yeasted Bread in Scotland

Reid’s of Caithness – Corn Bread

Best Sourdough Bread in Scotland

Harry Gow Bakery

Best Individual Cake in Scotland

John Gillespie & Sons Ltd – Carrot Cake

Best Morning Roll in Scotland

Peter’s Bakery – Crispy Morning Roll

Best Savoury in Scotland

Nevis Bakery Ltd – Aberdeen Angus Steak Pie

Best Scone in Scotland

G H Barnett & Son – Fruit Scone

Best Celebration Cake in Scotland

Luscious Lovelies Cakes

Best Viennoiserie in Scotland

Harry Gow Bakery – Fruit Danish

Best Free From Bread in Scotland

Bavarian Bakehouse - 1kg Seeded Gluten Free

Best Free From Cake/Biscuit in Scotland

Mimi’s Bakehouse Chocolate Raspberry Cupcake (MWG)

ANNUAL REPORT & YEARBOOK 2022/2023

EVENTS & AWARDS

ANNUAL CONFERENCE

OUR ANNUAL CONFERENCE TOOK PLACE ON THE 5TH & 6TH MAY 2023 WITH A PROGRAMME THAT PROMISED TO TACKLE THE KEY ISSUES AFFECTING THE SECTOR TODAY. Scottish Bakers President and McGhee’s Director Ian McGhee focused his speech on the resilience and creativity of the sector which has endured one of the toughest trading years in memory. With soaring energy and commodity costs bearing down as it continues to recover from the pandemic, Ian reflected on the work to support the trade he was involved in, in his first year as President. Delegates also heard from Neil Gray MSP, Cabinet Secretary for Wellbeing, Economy , Fair Work and Energy who delivered a keynote address and took questions afterward. A discussion on employment law, wellbeing and recruitment saw a panel of professionals shine a light on these vital business practises helping delegates to find new ways to support their people, to get the best from them and to reward their efforts.

This was followed by a baker-led debate on how bakers large and small can benefit from the provision of training, specifically apprenticeships, as a means of recruiting and retaining valuable staff and as a way of improving productivity and efficiency, reducing waste and ultimately saving money.

There were follow up sessions on how new outlets, customers or ways of reaching existing customers can bring business benefit along with a focus on trends and innovations completed the day before we heard from the reigning Scottish Baker of the Year champions, Paddy and Jane from The Three Little Bakers.

The conference also heard from Matthew Bond, creative director of Project D. The business, established in 2018, was the first ever recipient of the Online Bakery Business of the Year Award at the 2022 BIA ceremony. Project D now turns over around £3.5 million and employs more than 100 staff. Their Tik-Tok video of a mega heart-shaped doughnut being filled, decorated, and then devoured garnered more than six million views on the social media platform.

As always, conference host and Scottish Bakers Ambassador Mich Turner MBE did a fantastic job of hosting and facilating the discussions.

Matthew told delegates about their phenomenal growth plans for the next 24 months and how moving away from mainstream “bricks & mortar” sites during the height of the Covid pandemic helped pivot the business to online sales which now account for 20% of all sales.

President Ian McGhee said ahead of ahead of the conference, “The programme for 2023 is full of content that reflects the positive outlook of a sector keen for continued growth against a backdrop of ongoing challenges. I would like to thank the team at Bakers House, and particularly our outgoing Chief Executive Alasdair Smith, for curating what promises to be a thought provoking and intensely interesting weekend for our industry.”

ANNUAL REPORT & YEARBOOK 2022/2023

EVENTS & AWARDS

CENTENARY CLUB

OUR CENTENARY CLUB MEMBERS HAVE CONTINUED TO MEET UP ON A REGULAR BASIS, WHICH INCLUDED THE MARKING OF THE 30TH ANNIVERSARY OF THE CENTENARY CLUB WHICH WAS ESTABLISHED IN THE ASSOCIATION’S CENTENARY YEAR. The Christmas lunch for Sectors 2 and 3 at Haggs Castle has always been successful and with 18 bookings early in December, we thought this year would be no different. However, we then started getting cancellations due to various short-term illnesses, and in one case a member’s car breaking down. This meant that only 7 could attend on the day of the lunch. Due to the reduced number of attendees the usual updates from the President and CEO were foregone and instead various discussions were had on the industry and on Scottish Bakers. This included the reminiscing on the former SAMB Conference Technical Sessions and the Forty Group.

The Sector 1 Centenary Club met up in both February and July 2023 with lunches held at the Atholl Hotel in Aberdeen, organised by convenor, Past President Clive Sangster. It was a excellent lunch to which Sector 3 Convenor Jim Brown was delighted to attend and to take some pictures. It was also great to see Sheila Chalmers again, now in her 90th year! The chat was excellent and they enjoyed reminising about times gone by. 30th Anniversary 2023 All Sectors Lunch of the Scottish Bakers Centenary Club All attendees were delighted to see Past SAMB Company Secretary Fay Somerville at the lunch, the first she has been able to attend for a few years. so there was a lot of catching up done during the day! Members were also particularly pleased to see President Ian McGhee again, but not just because of his pearls of wisdom on the current activities of Scottish Bakers and on the baking industry in general! Once again, he brought lots of goodies from McGhee’s to pass on to the Centenary Club members.

Ian gave an interesting talk on his visit with Alasdair Smith to Westminster Hall to discuss the energy crisis and meet up at different times, with SNP’s Stephen Flynn and Stewart Hosie, and with Alister Jack MP, at the Scotland Office.

WE WOULD LIKE TO EXTEND OUR THANKS TO THE CENTENARY CLUB CONVENORS FOR ALL OF THE WORK THIS YEAR AND IN PAST YEARS IN ORGANISING THESE FANTASTIC GET TOGETHERS FOR THOSE RETIRED FROM THE TRADE. MANY THANKS TO JIM BROWN, PAST PRESIDENT CLIVE SANGSTER AND ROBERT ROSS.

ANNUAL REPORT & YEARBOOK 2022/2023

MEMBERSHIP SERVICES

AA: BREAKDOWN COVER Running a company with vehicles at its heart means that staying still isn’t an option. The AA’s business breakdown cover will make sure your drivers get back on the road quickly – and with minimum disruption – if the worst happens. All you need to do is choose the right level of cover for you. Scottish Bakers members receive up to 56% off business breakdown cover with the AA.

DIRECT ENERGY: ENERGY, UTILITIES & MERCHANT SERVICES

FOOD TECH SYSTEMS: FOOD SAFETY CONSULTANCY

Scottish Bakers has carefully selected Perth-based Direct Energy as its preferred energy and utilities service provider. Direct Energy has over 20 years’ experience working in the British energy industry and are dedicated to getting you the best possible deals on energy and other utility costs which NOW INCLUDES MERCHANT SERVICES.

Scottish Bakers has secured DISCOUNTED rates for members to access Food Tech Systems consultancy services and FREE access for straightforward telephone/ email enquiries.

Direct Energy is a 100% independent and impartial business and makes no charge for its services: they work for you not the supplier

DELL TECHNOLOGIES Dell UK has always worked help to help small businesses grow and support them wherever possible. After all, they started as one when we were founded just over 30 years ago! You may know Dell for its products, but they are proud to partner with the best small business professional UK associations to provide a range of benefits, including discounts, to members.

Their business is comparing energy and utilities deals for you saving you money and time.

Food Tech Systems can support on-site training and consultancy in the following areas: BRC SALSA, EHO, Labelling, Site Layout & HACCP.

FOOD CHAIN ID: FOOD SAFETY SUPPORT FoodChain ID Technical Services Ltd is the UK’s leading provider of Trading Standards and Food Safety Advisory Services. FoodChain ID Technical Services has been at the vanguard of the New Food industry for more than two decades, providing expertise worldwide to navigate the requirements of an increasingly regulated food economy and technical services to support the demand for clean label standards. The support service is provided by qualified legal practitioners under the supervision of qualified Trading Standards Officers with appropriate commercial experience, ensuring our members receive legally accurate information which is practical and relevant in commercial operations.

Food Tech Systems offers food safety consultancy services to food and drink industry businesses across the UK. They are respected and recognised leaders in Food Safety covering technical, production, operations and Health & Safety services from a friendly specialist food safety consultancy business.

MEMBERS

HMCA: MEDICAL CARE PLANS HMCA has specialised in providing benefits and services to associations and professional groups since the 1970s. HMCA is authorised and regulated by the Financial Conduct Authority. Scottish Bakers has agreed with HMCA to offer discounted rates for medical plans, dental plan, hospital cash plans, travel plan, income protection and vehicle breakdown products.

ANNUAL REPORT & YEARBOOK 2022/2023

MEMBERSHIP SERVICES

LEYTONS: R&D TAX CREDITS

OH WORKS: OCCUPATIONAL HEALTH

PENINSULA: HR LEGAL SERVICES

Leyton is a global innovation funding consultancy dedicated to helping their clients improve their business performance. They work with businesses of all sizes to find a better way of delivering value. In the UK, their specific expertise is in innovation funding, energy consultancy and capital advisory.

Glasgow based OH Works, is an occupational health service specialising in offering the required legislative health care needs for all employees.

Scottish Bakers has carefully selected Peninsula to support bakery members with their HR, Employment Law and Health & Safety requirements. Peninsula’s team of expert advisors based in its Glasgow offices, are available to members 24/7. This keystone service can save even small bakery members over £1,300 per year compared with contracting for its provision separately.

They are the UK’s largest specialist in Research & Development (R&D) Tax Credits; a government incentive which rewards UK companies for investing in innovation. They have a highly qualified team of consultants in science, tax, engineering, software and accountancy and are proud to have a 100% success rate for HMRC submissions generating an average return of £78,000 per year for our clients. Their commitment to Scottish Bakers and its members is to ensure the delivery and maximisation of Research and Development (R&D) Tax Credits, while giving members a free review of their current service provision. They are committed to working alongside the association and its members to increase the knowledge and awareness of Innovation funding.

Bakery businesses have a legislative obligation to undertake lung function tests and skin assessments under the Control of Substances Hazardous to Health (COSHH) — recommended annually. Members can access this service, and many others including hearing tests, face-mask fitting, and other safety critical medical assessments at a special reduced rate.

Bakery members have access to team of Employment Law experts and access to a documentation suite for their Employment Law needs. With extensive and detailed professional experience in HR and Employment Law, the Peninsula team make sure our members get the advice you need as quickly as possible. This service provides peace of mind to members when dealing with the complex areas of HR, Employment Law and Health & Safety legislation. They can relax in the knowledge that they have their own team of experts on call 24/7, either by phone or online, as well as a comprehensive back up and support service to help you find your way.

WEX: FUEL CARD Scottish Bakers members are eligible to apply for an Esso Card™ fuel card and receive a highly competitive fixed weekly DISCOUNT of UP TO 5P PER LITRE off pump price. You can also collect Tesco Clubcard points — an Esso Card™ allows your drivers to earn Tesco Clubcard points when they fill up at participating Esso-branded filling stations.

ANNUAL REPORT & YEARBOOK 2022/2023

GOVERNANCE

BOARD MEMBERS 2022/23