SAOS/C2 Helps Mackies / Taypack deal
01 July 2009
The new joint venture, announced this week, between two of Scotland's leading food and drink businesses was helped to fruition by the SAOS Cultivating Collaboration project (C2).
Mackies of Rothienorman and Taypack of Inchture announced at the Royal Highland Show this week that they have joined forces to create a new ranges of premium crisps. The crisps will be produced at Inchture and marketed under the Mackies brand.
C2 played a key role in the development of the venture, as the companies worked out the terms of the deal. SAOS also assisted them to develop their application for funding to the government's Food Processing, Marketing and Co-operative Grant scheme.
Bob Yuill, SAOS's deputy chief executive and an expert in co-operative structures, became involved with the project last September. He is delighted that the project has now been formally launched and more than delighted that SAOS was able to help get it off the ground
He says "We provided expertise to the parties to help negotiate the detail of the venture and its collaboration through the supply chain, including Taygrow, a co-operative of 25 elite potato growers with skills in producing potatoes to exacting market requirements.
"It was clear that collaboration would provide greater security to the project, a faster entry into the market place and a more competitive product."
He adds: "The collaborative business model is more efficient in terms of supply chain costs and volumes. This allows the management of Taypack and Mackies to concentrate on efficient processes and effective marketing respectively".
The project will operate under a new joint venture company called Mackies at Taypack Ltd. The chair of the new venture is Russell Taylor, with Kirstin Mackie as Managing Director. George Taylor of Taypack is one of three other directors, along with Karen Hayhow and Mac Mackie.
Bob's view of the role C2 played is that of an 'honest broker'.
"We helped investigate the collaborative potential of the project and also assisted when heads of agreement were being drawn up," he says. "This type of activity helps minimise the amount of time, effort and expense which is required to formalise the contract as the parties have already agreed the main points before the bring in their legal teams."
This support and expertise is available to the food and drink sector through the C2 project - Bob and his colleagues can provide the expertise and knowledge which businesses need even when a venture is in its earliest stages.
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