We have watched our sales grow rapidly in our first year of business, with over 100 independent retailers now stocking our products. Like all small businesses we believed that the key to success was to invest in premises and steadily grow the manufacture of our products, however production of our largest order to date, a 50,000 unit order for a major German hamper distributor, made us realise that our growth was actually being inhibited by our premises.
At Sogud we relish a challenge, and that set us to work on how to meet the ongoing expectations of our sales momentum while managing the restrictions of our small bakery.
So, we did the maths. We found that working with experienced large scale contract bakers could increase our production capacity by 90%, while reducing our costs by 40%. We identified and interviewed a number of such businesses local to us in Scotland and made the big decision move to a fully outsourced model.
Focused on our strengths
Our decision has provided us with the freedom to concentrate on the real strengths of our business – selling our products, building our brand and developing exciting new flavours. Owning our own bakery has enhanced our own manufacturing expertise and helped us to truly understand what’s involved in producing high quality products.
Our decision will make our business even more nimble than before, allowing us to work with the best baker at the right price for the manufacture of our products. It will enable us to turn around large orders far quicker and far more efficiently than ever before. Our contractors count major multiples among their clients and we are confident that working together will open new distribution lines and allow us to seek profitable new markets.