Denise, Sandy and Angela McKinnon of Tower Bakery

Independent Scottish bakery Tower Bakery has agreed a distribution deal with Lidl after bagging six-figure bank funding.

The family business, run by husband and wife Angela and Sandy McKinnon with their three children, will supply the discounter with a range of six products to 90 Lidl stores across Scotland.

It comes as Tower expanded its operational capacity with a funding package from Clydesdale Bank, using the money for new equipment to cope with increased production demand.

The deal, with products on shelf in Lidl from 4 April, is the latest in a string of high-profile contracts the Perth business has won. It already supplies Aldi, Co-op, Spar, and more recently Asda and Tesco.

Co-founder Angela McKinnon said: “Our recent spate of contract wins has been great news for the development of the business. We have created 20 new jobs across the firm, including bakers and drivers. We’ve also had to double our production capacity, which Clydesdale Bank helped to fund.

“As part of that expansion we’ve invested a six-figure sum in new equipment.”

Richard Smith, head of Clydesdale Bank’s business and private banking centre in Dundee, added: “The company had to grow very quickly to meet rapidly increasing demands.”

McKinnon attributed the recent growth of the business to her children who have become more involved in the management since Sandy McKinnon had a stroke last year.

“It’s because of their expert handling of the business that these contracts have been won,” she said. “David, Debbie and Denise, have been worked tirelessly in their new roles as partners and are due a lot of credit for our recent growth. The increasing demands on capacity have been hard work for us all, but it’s a very exciting time for the business.”