Specialty Food Magazine

NOV-DEC 2012

Specialty Food Magazine is the leading publication for retailers, manufacturers and foodservice professionals in the specialty food trade. It provides news, trends and business-building insights that help readers keep their businesses competitive.

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BRAND SPOTLIGHT BEST SELLERS Shortbread Fingers Shortbread Rounds Scottie Dogs Shortbread had more than 100 employees, 14 vans and three shops in the Scottish highlands. Their products could be found on local grocery shelves throughout the region. The energy and optimism of the come without challenges. Within a few years of the move, World War I began and he learned a lesson about the importance of flexibility. "There was no sugar during the war, so no shortbread," says Jim Walker, managing director and grandson of Joseph. "He concentrated on making bread and rolls during both wars." In the 1930s, Joseph's sons James and Joseph Jr. joined the business that then offered a wider range of cakes and a selec- tion of confectionery. His sons were eager for growth, so the business bought its first van. From Local to International In 1954, Joseph Walker died, and his family carried on the business. By the 1960s the third generation of Walkers had joined the company: Joseph, the eldest grandchild, ran manufacturing; Marjorie handled financial administration; and Jim, the youngest, ran sales and marketing. At this point, Walkers third generation joining the operation led Walkers to plan for expansion. "I went in with my suitcase and shared with Harrods in the late '60s," says Jim Walker of the first London-based specialty store that carried Walkers. In the 1970s, the company set its sights on the internation- al markets. Switzerland and France were the pioneer nations. Walkers showed its product at ISM—today the world's biggest confectionery trade show—in Cologne in 1978. That same year, Walkers started working with Europa Foods, which distrib- uted the shortbread to major cities in the United States. Cardullo's Gourmet Shoppe in Cambridge, Mass., was the first specialty store in the U.S. to carry Walkers, soon fol- lowed by shops in other metropolitan areas such as Zabar's in New York. "We grew one step at a time: local, then all over Scotland, then England—some of the best stores in London. Then Europe. Then the U.S.," recounts Walker. "Our rep- utation spread by word of mouth." Though the third generation was keen on expansion, they were rooted in tradition. "We still used the same recipe that my grandfather used," he says. "Even when the price of butter BRAND TIMELINE 1898 Joseph Walker, 21, opens a bakery in the Scottish highlands. 1930s Joseph's sons James and Joseph Jr. join the business, which offers a range of cakes and confections. 1954 Joseph Walker dies, and his family carries on the business. 1960s Grandchildren Joseph, Marjorie and Jim join the business. 1970s Begins exporting shortbread to more than 60 countries around the world. 1975 Moves to a custom-built factory in Aberlour, Scotland; develops new products such as chocolate chip shortbread. 1978 Products shown at ISM in Cologne, Germany. Debuts in U.S. 1992 Prince of Wales helps establish Duchy Originals Biscuits and Walkers made the very first Duchy item, the Oaten Biscuit. 1995 Joined NASFT when U.S.-based Walkers Shortbread Inc. was established. 2004 2012 Business totals five factories, three in Aberlour and two in Elgin. Broke ground on a sixth factory, in Aberlour, in August. 58 ❘ SPECIALTY FOOD MAGAZINE ❘ specialtyfood.com shot up [and other companies started using margarine in shortbread], many customers came to us because we were still using the very best ingredients." The Recent Years: Key Factors in Success Along with its proven recipe, Walkers also credits its success to a consistent method and a few smart business moves. A Committed Local Workforce. "There are 600 people in the village of Aberlour, but we employ 1,600," Walker notes. "We have a huge social interdepency with the community." By 1995, Walkers was busing people in from neighboring villages to work at one of three Aberlour facilities. It was the largest employer in town. "We were practic- ing CSR [corporate social responsibility] long before it became a buzzword," Walker attests. "We rely on our people and we believe you need to look after your people. We are focused on being a good employer." As production demands grew, Walkers needed larger facilities—and more employees. In 1995, the company decided to open its fourth factory in nearby Elgin, a larger village with a bigger labor pool. In 2002 a second Elgin factory opened and the business broke ground on a fourth Aberlour bakery. Walkers now has more Aberlour House, a shuttered school next to Walkers factory that the company bought and renovated, becomes the head office for Walkers Shortbread Ltd. Prince Charles presents as guest of honor.

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