Bosses at the UK’s leading water producer are predicting further sustained growth for the Perthshire group.
That is despite the current economic turmoil in the country.
Blackford-based Highland Spring employs around 400 people at three sites – two in Scotland and one in Wales.
The company was founded in 1979 by its owners, the Al-Tajir family.
The later acquisitions of Speyside Glenlivet and the water division of Greencore Group helped grow turnover to £100 million in 2015.
In the last eight years, the company has invested more than £50m in its headquarters.
It has also invested in new buildings and equipment.
The Queen was welcomed in 2017 to open a new production line, which can fill at speeds of 73,000 bottles an hour.
£20m facility a key part of net zero strategy
Another important addition to the Blackford base is its new rail freight facility, which will become operational this year.
It has been developed in partnership with Transport Scotland, Network Rail and the Scottish Government at a cost of £20m.
It is part of Highland Spring’s net-zero strategy, as it will remove thousands of lorry movements from the roads.
Meanwhile, last year saw a change in the top management at the business.
Les Montgomery retired as chief executive after 14 years in the top job.
He has become a non-executive director of the company.
Chief commercial officer Simon Oldham and chief operating officer Mark Steven became joint managing directors.
They have shared their thoughts on market conditions and what the future could hold.
Highland Spring feels impact of pandemic
They said: “The company’s focus in the last 12 to 18 months has been protecting employees and ensuring the long-term sustainability of the business.
“While the brand held up well against the market in retail and increased our market share, we did experience a significant initial drop-off in the out-of-home channel.”
There was, they said, a change in the product mix.
In response, two new Highland Spring products were launched – flavoured sparkling cans and a 10-litre hydration pack.
The bosses added: “These were developed to meet evolving consumer needs and new consumption occasions.”
And the firm achieved increased profitability in 2021.
That underlined the “agility, flexibility and resilience of our people and operations”, the joint managing directors said.
“Highland Spring brand UK sales volumes grew by 6.3% to 348.6m litres in 2021 – securing a healthy market share of 10% of the total UK plain packaged water volumes,” they added.
Current challenges facing Perthshire firm
Mr Oldham and Mr Steven also acknowledged rising costs are a concern for customers.
They said the firm is working hard with retailers to keep prices down.
“The natural source water category, like many others, is facing into increasing costs on energy, materials, transport and commodities,” they said.
“These issues are not unique to our group, but being faced by all businesses up and down the country.”
However, the pair don’t feel this will hold back Highland Spring’s growth.
Group brands include Highland Spring, Hydr8 and a range of private-label flavoured and unflavoured waters for major supermarkets and food-service retailers across the UK.
It is also Britain’s leading exporter of bottled water worldwide.
The managing directors said: “We have a strong brand, agile business model and confidence in the category and the market’s projected annual growth.
“According to Zenith, it is expected to accelerate from 2022 to 2024.”
Highland Spring well placed for growth
Highland Spring’s bosses believe the business is well placed for further growth.
They said: “We are focused on a long-term strategy to invest in and develop innovative, high-quality, sustainable products.
“Environmental sustainability is central to all business activities.
“The group achieved carbon neutrality across UK operations at the end of 2021.
“The group is committed to an overall target of net-zero emissions by 2040.”
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