McGhee’s Bakery

Who They Are

McGhee’s Bakery is a family-run, award-winning food manufacturer based in Glasgow. They were named Bakery Manufacturer of the Year in 2022 and have been a customer since 2016.

In food manufacturing, energy sits at the centre of operations. It affects margins, production costs and the ability to keep prices stable for customers. Procurement decisions carry real weight.

When McGhee’s invested in a Combined Heat and Power (CHP) plant to generate their own electricity, their gas consumption was set to rise significantly. They needed a partner who understood what that meant — and could plan ahead accordingly.

The Challenge

The CHP investment was the right decision for the business. But it meant gas consumption would nearly double — from 10GWh to 19GWh over the contract period.

Energy markets are volatile. A growing consumption profile in an uncertain market creates genuine commercial exposure, and the consequences of poor contract timing can be significant.

McGhee’s also had other brokers competing for their business. What they needed wasn’t simply a competitive rate. It was a partner with enough understanding of their situation to act at the right time — not just the most convenient one.

How We Changed Energy Together

Indigo Swan supports McGhee’s through long-term procurement strategy and ongoing contract management.

Energy Procurement

Knowing consumption would rise, we moved early.

In 2020 — when gas prices had fallen — we tendered a contract not due to start until August 2022. Two years ahead of time.

We secured a highly competitive rate, locked in for 36 months.

That decision was based on a clear read of the market and a thorough understanding of McGhee’s energy profile. Timing and preparation made it possible.

Energy Management

Once the contract was in place, we continued to monitor supplier performance and track consumption as the CHP plant came fully online.

As the energy crisis developed through 2022 and 2023, McGhee’s were already protected. The rate was fixed. The contract held.

By 2025, with markets more settled, we secured a competitive renewal — bringing McGhee's back to rates close to those they were paying when they first came to us in 2016.

This partnership reflects Indigo Swan’s wider expertise in supporting manufacturing and industrial organisations with long-term energy procurement strategy across the UK.

The Impact

Financial Impact

  • Substantial savings in avoided costs over the contract period
  • Contract secured two years ahead of the crisis, at a rate well below market peak
  • 2025 renewal secured at a rate close to pre-crisis levels

The savings came directly from acting early and getting the contract structure right. Good preparation, well timed.

Operational Impact

  • Full protection through the 2022–23 energy crisis
  • Profitability maintained during a period of significant market pressure
  • Customers shielded from unsustainable price rises
  • Long-term cost certainty built into financial planning
  • Stable platform to continue investing in efficiency

Through a difficult period for the sector, McGhee’s were able to stay focused on running the business rather than managing energy costs.

Why They Value the Partnership

McGhee’s values Indigo Swan because we take the time to understand the business properly — and that understanding shapes how we act on their behalf.

We provide:

  • Long-term procurement strategy tailored to the business
  • Proactive advice based on market conditions and consumption profile
  • Clear guidance without short-term commercial pressure
  • Ongoing contract and renewal management
  • Confidence that energy costs are being properly looked after

For food manufacturers where margins are tight and energy costs are material, having a partner who plans ahead and acts at the right time makes a significant difference.

That’s what we mean when we say we’re changing energy together.

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