The Fife economy has received a major boost with PepsiCo’s confirmation that it is ploughing £14.4 million into its porridge oats plant at Cupar and creating 30 new jobs.
The move, which will increase the overall workforce to 247, was welcomed by Prime Minister David Cameron, who took a tour of the venue during a high-profile visit to Scotland on Thursday.
The Cupar plant is home to the Quaker Oats and Scots Porage Oats brands and the cash will be used to develop a new high-speed sachet and bagging line at the factory.
PepsiCo said the new money which follows an £8.5m upgrade last year and which takes total investment in the Fife site to £51m over the last decade was being made available in response to an upsurge in the popularity of porridge.
Demand for hot cereals has grown by 30% over the past two years and the UK porridge market is now worth £157m per annum. The increasing appetite for the dish has seen sales of Quaker’s Oat So Simple brand grow by 44% over the past two years.
In addition to the UK growth, PepsiCo has seen its oats exports rise by 18% over the past five years, primarily fuelled by an increasing in demand for the foodstuff in the Middle East.
The Prime Minister said: ”Quaker and Scott’s Porage Oats have a long heritage here in the UK and PepsiCo’s further investment of £14.4 million is a welcome example of its continued commitment to Cupar and to Britain.
”The company’s continued success is testament to the skill, expertise and hard work of the people here at Cupar and I’m delighted to see the business going from strength to strength, expanding the site, creating jobs and increasing their exports abroad.
”It is good news locally and it is a positive development to have the extra jobs. The truth is right across the United Kingdom Scotland included what we need is a private-sector-led recovery.
”We need more jobs to be created and that is what all our plans are about. Whether it’s boosting apprenticeships or cutting corporation tax rates, whether it is keeping interest rates low that is the whole impetus of the Government.
”At the same time we have to do more to help people that are out of work to get back into work.”
Construction work for a new building to house the new high-speed productions lines is under way with foundations having been laid this month.
Richard Evans, president of PepsiCo UK, Ireland and South Africa, said the Fife site which has been producing Quaker’s oats for more than 60 years is key to the company’s plans.
He said: ”This investment at Cupar means we’ll be able to satisfy the increasing demand at home and abroad for years to come. The porridge market has seen phenomenal growth and what’s particularly interesting is that hot cereals are now being eaten all year round and not just in winter.
”Overseas demand for our oats is also increasing, and we see this as a key area for future growth.”
Food and drink giant PepsiCo has annual net revenues of around $60bn and has 22 different product lines including the Pepsi cola brand that each generate more than US$1 billion in annual retail sales.