Tunnock's caramels foil the modernists

Thomas Tunnock is bucking the trend towards flow-wrapped snacks by pledging to continue foil wrapping its iconic caramel wafer.

Boyd Tunnock, md, said he had ordered a new high-speed foil wrapping line as part of a £2.7m investment into the firm's Glasgow factory to increase efficiency and automation. The cash has also been spent on robotic packers, plate ovens, a spiral conveyor and chocolate enrobers.

Tunnock, whose grandfather founded the Tunnock's empire, said: "The market is extremely tough. Labour costs and energy prices are going up every year, and we've only secured two price increases in the last decade. The only way to deal with that is through automation."

He added: "We run an extremely efficient operation, but there are still some processes that are done by hand, including layering the sheets of wafer on the caramel. This will be done by a robot in a couple of years.

"The red and gold foil wrapping is a key part of the brand," he added. "We're so committed to it that I've just ordered a new high-speed [foil] wrapper."

Introducing chunky or bite-size variants was not on the agenda, he added. "Brand extensions can work, but you have to be careful not to overdo it. A brand should stand on its own."

Tunnock said this year's trading had been "slightly tougher" than last. Companies House figures show a 17.9% rise in pre-tax profit to £2m on sales up 5.2% to £30m in the year to February 28, 2004.