FDBusiness.com

PepsiCo is investing £14.4 million to increase the capacity of its Quaker Oats site at Cupar in Scotland in a move that will bring 30 jobs to the local area. The investment, which builds on last year’s £8.5 million spend, makes a total of £51 million that parent company PepsiCo has spent on the site over the past decade to meet the surge in consumer demand for porridge.

With the UK porridge market now worth £157 million, the hot cereal market has grown by 30% over the past two years. For PepsiCo, the public’s appetite for quick and easy porridge has helped drive growth with value sales of its Oat So Simple sachets increasing 44% over the last two years. In addition to growth in the UK, PepsiCo has also seen its oats exports rise by 18% over the past five years as demand for Quaker Oats increases in the Middle East.

“More and more people are eating porridge all year round and our investment at Cupar means we’ll be able to satisfy the increasing demand at home and abroad for years to come,” comments Richard Evans, president of PepsiCo UK, Ireland & South Africa. “The porridge market has seen phenomenal growth and what’s particularly interesting is that more and more people are opting for hot cereals for breakfast all year round – whatever the weather. Overseas demand for our oats is also increasing, and we see this as a key area for future growth. Quaker has been milling oats at Cupar since 1947 and we are very pleased to invest again in our site to protect its heritage and grow the Quaker Oats business.”