ARBROATH-based Mackays has won a major deal with Tesco to supply jams and preserves to hundreds of the supermarket group's stores across the UK.

Managing director Martin Grant said the new supply arrangement was a sizeable piece of business which would probably more than double the value of its sales to Tesco on a cash basis.

Mackays, a business founded in 1938 which supplied the fillings for United Biscuits's (UB) jam rings, was transformed into a marmalade and preserve brand following its acquisition in 1995 by Martin's father, Paul, who had worked for UB for 27 years.

Martin Grant, who noted his father remained an active chairman of Mackays, said the company started supplying Tesco's Scottish stores in the mid to late-1990s and began supplying marmalade to the supermarket group's stores south of the Border in 2000.

The latest supply deal with Tesco will, from September 10, result in Mackays's Scottish blackcurrant, strawberry, raspberry and three berry preserves being sold in another 700 stores across the UK. An additional three premium "single farm jams" produced by Mackays will go on sale from this date at 650 Tesco stores across the UK.

Mackays, which raised its pre-tax profits from £260,441 to £400,825 last year as turnover rose from £11.1 million to £12.5m, is projecting sales of more than £14m in 2012. It employs about 145 full-time staff.

Martin Grant said the firm had 27 staff when it was bought by his father. He added it tended to add between five and 10 staff every year depending on the needs of the business.

Exports make up about 40% of Mackays's sales. The firm sells its products to more than 50 countries, with Japan and North America among its key overseas markets. In its home market, Mackays also supplies Sainsbury, Wm Morrison, Waitrose, and the Co-op.

Mackays's move to supply jams and preserves to Tesco on a UK-wide basis follows a close association with the supermarket group in Scotland over the years. Tesco provided free advice to Mackays when it moved about five years ago to a new factory at Arbroath, from Carnoustie. This move more than doubled its factory space.

Mackays is participating again this year in Tesco's "Scotland's Favourites" promotion, which is running in stores north of the Border until September 4. This is designed to promote Scottish produce among the customer base in Scotland.

Tesco said Mackays had benefited from a "sales increase of more than 200%" in its stores during the time it participated in the Scotland's Favourites promotion in 2010 and 2011.

Mackays's marmalades and preserves are still produced in the time-honoured way of boiling small batches of locally-sourced fruit in open, copper-bottomed pans.

Martin Grant said Mackays bought several hundred tonnes of Scottish fruit each year.

Asked about Mackays' support for Scottish fruit growers, who have suffered a tough year because of the weather, he replied: "We have certainly, because of this new piece of business and several others we have picked up this year and flowing into next year, had to go out and buy nearly double the amount of fruit we would normally buy.

"I think we are a dependable customer to them (the Scottish fruit industry)."

Angus Bell, local category buying manager for Tesco in Scotland, said: "When you look at where they source the fruit from, it is all locally sourced for the jam."

Highlighting Tesco's support for Mackays, he added: "When they were building their new factory in Arbroath, our technical manager and myself both got involved to give them a steer. We are good at helping suppliers who are looking to expand."