STAG Bakeries was set up in 1885 as a breadmaker on Stornoway. Daniel Smith joined the business in 2013 after he graduated from his business degree. The company’s range of baked goods are now sold in eight countries around the world.
Name: Daniel Smith
Age: 28
Position: Sales and marketing manager
WHAT IS THE BUSINESS CALLED?
Stag Bakeries
WHERE IS IT BASED?
Stornoway
WHY WAS THE BUSINESS SET UP?
IT started in Stornoway as a one-stop-shop for baked goods on the island. We now sell a range of biscuits and cheese straws that we get over to the mainland. The fresh stuff has a short shelf life. We make more than 200 products and are a well-known outlet in Stornoway. I joined the company after I graduated from a business degree at college six years ago. We have 60 people working for us, making us a good employer on the Western Isles.
WHAT IS YOUR TARGET MARKET?
WE mainly supply to independent shops on the mainland and the island. The customers are people who care about the story behind the product. We try to stick to traditional recipes where we can. The local customer must always come first because of our heritage. When we rebranded for the biscuit range in 2013 provenance was a really big consideration. It’s a useful point of difference for us as people want to know where it’s made. The seaweed biscuit range was launched six years ago and we won Best Scottish Speciality Product at the Great Taste Awards which got folk interested in trying it. It was available in M&S for four years and was a gateway for people to try our products.
HOW IS IT DIFFERENT FROM COMPETING BUSINESSES?
THE starting point is always traditional recipes but we try to add unique flavours and push boundaries. We were unsure how the seaweed biscuits would be received but it made sense to people why an island bakery would try it. We also do a fruit cake for a cheese board – it goes well with cheese as an alternative to biscuits.
IS SCOTLAND A GOOD PLACE FOR THIS TYPE OF BUSINESS?
IT’S fantastic. In the past few years, through doing exhibitions in Glasgow, London and Birmingham, we’ve found that there’s an appreciation for food and drink coming out of Scotland. Smoked salmon, biscuits and cheese all go together. There’s a nice association between Scottish produce and quality. The location is unique and comes with challenges but overall being in the Outer Hebrides is a big help to us. We are proud of where we’re from.
WHAT DO YOU ENJOY MOST ABOUT WORKING FOR THE BUSINESS?
DEALING with challenges every day like making sure customers get high-quality products day in day out and new products are the same standard but are unique. It’s a challenging industry but support for small companies in the food and drink market seems to be growing. In the time I have been there our sales have been increasing year on year.
WHAT IS THE BIGGEST CHALLENGE IN RUNNING THE BUSINESS?
THE bakery industry is quite challenging at the moment in terms of the economy. We try to meet challenges head-on every day. It is a very competitive industry so we have to be on the lookout for consumer trends.
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WHERE DO YOU HOPE THE BUSINESS WILL BE IN 10 YEARS’ TIME?
OUR core range of products will stay similar but we will put time into new developments. We are looking to grow the export side of the business if we can. We have been doing it for five years now.
We are sold in eight countries at the moment, including the UK: Denmark, Norway, Spain, Australia,
New Zealand and we have just launched in Singapore where there is lots of growth potential.
We went to an exhibition in Dubai to raise awareness in February. It is motivating because it shows you how far this can go.
In terms of Brexit, it is hard to say how it will affect us at the moment. In theory, it will make it more difficult to export because more documentation is needed.
It is obviously at the top of international customers’ agendas. Hopefully, when a resolution comes through, we can react.
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