Aberdeenshire-based family bakery Murdoch Allan has achieved a significant financial milestone, recording turnover of £11.5 million while announcing plans to expand its workforce. The achievement underscores the continued strength of North East Scotland’s food and drink manufacturing sector, which employs over 22,000 people across the region and contributes more than 20% of Scotland’s total food and drink industry output.
The company, established in 1991 by founder Murdoch Allan, has grown from a single shop in Fraserburgh to operate six bakery outlets across Aberdeen and Aberdeenshire, including locations in Turriff, Hatton, Peterhead, Mintlaw, and the acquired Thains bakery in Aberdeen. Managing Director Paul Allan, who runs the business with his wife Katrina, has overseen significant expansion including the recent acquisition of Teviotdale Bakery in Dundee earlier this year.
The Dundee acquisition marked Murdoch Allan’s first expansion outside Aberdeenshire and added production capacity of approximately 100,000 rolls per week to the company’s operations. The deal protected existing jobs while creating additional employment opportunities, demonstrating the company’s commitment to workforce growth alongside financial expansion.
Murdoch Allan supplies major Scottish supermarket chains including Asda, Aldi, Co-op Local, Morrisons, and Sainsbury’s with products ranging from their famous Aberdeen Butteries to morning rolls, tattie scones, muffins, and various confectionery items. The company secured a significant £1 million contract with Asda in 2024 to expand product listings across Scottish stores and recently extended their Aldi contract.
Paul Allen told the P&J: “The big growth through Aldi has been great. We sell 150,000 rolls a week, and about 400,000 cakes. We started from zero products three years ago to where we’re at now which is really good.”
Turnover has also grown to £11.5m with Paul expecting to hire more staff before the end of the year.
He said: “Staffing-wise we’re looking to take on more people with 15 expected before the end of the year.”
The North East Scotland food and drink sector has set ambitious targets to grow turnover by 5% per annum to 2030, with goals to double output and exports while increasing productivity by 25% by 2025. These objectives are supported by significant infrastructure investments, including the £27 million ONE SeedPod innovation hub at Aberdeen’s Craibstone Campus, which opened in 2025 to support business scaling, product development, and industry collaboration.
The bakery industry faces continued challenges including labour shortages, rising ingredient costs, and increased wage bills. However, technological advancements and successful product development strategies continue to drive growth, with particular strength in premium and specialty product categories that align with evolving consumer preferences.
Murdoch Allan’s achievement of £11.5 million turnover represents not just individual business success, but reflects the vitality of North East Scotland’s food manufacturing sector as a key driver of regional economic diversification and employment growth.
