Scottish cake and biscuit producer Reid’s of Caithness is in negotiations to relocate to a 20,000sq ft bakery as orders from customers such as Jamie Oliver’s Jme brand increase.

The Thurso-based firm has reached capacity at its 3,500sq ft site and is hoping to move to new premises on the edge of the Highlands town in the New Year to meet growing demand for its premium shortbread, oat biscuits and loaf cakes.

Managing director Gary Reid said: "We’re already running three shifts and are limited by what we can do in our current site. If we manage to secure it, the new site will enable us to improve production flows and systems, and invest in new equipment."

Most recently, Reid’s has developed four shortbread and three sweet oat biscuit products for the Jme brand and is in talks with a potential foodservice customer, which, if successful, would result in large-scale orders.

"Winning the Best Scottish Speciality award [for its All-Butter Shortbread] at the Great Taste Awards in 2010 really made companies look at what we are doing," said Reid. "We have had interest from the supermarkets, but have said ’no’ to them because we are looking to grow with fine food shops, garden centres and delis, although we do currently supply Waitrose stores in Scotland."