NORTH HIGHLAND INITIATIVE REVIEW 2014-2019Success Is in Our Nature

NORTH HIGHLAND INITIATIVE REVIEW 2014-2019Success is in our nature

Chairman’s Letter and Introduction

David Whiteford OBE, Chairman, on his “The North Highland Initiative has, farm at Nigg, Easter Ross. thanks to our many partners and the support of HRH, The Prince Charles, Duke of Rothesay, delivered economic change and created exemplar initiatives in the food production and tourism sectors.”

Dear Supporter and Stakeholder,

In 2006, HRH, The Prince Charles, Duke of Rothesay, brought together several strands in his vision for the North Highlands with the creation of the North Highland Initiative. More than a decade has passed since those early “Seeing Is Believing” visits by HRH and the Initiative has continued to develop and deliver the vision of HRH to support and help create sustainable communities and businesses in the North Highlands. It has done this by working with primary food producers, tourism businesses and agencies such as The Highland Council, Highlands and Islands Enterprise and private sector with significant businesses such as Anglo Beef Processors, Dunbia and Sainsbury. While the office base is where the Initiative was born, in Wick, Caithness, its reach is much wider than the county. The activities of NHI are across the whole of the North Highlands, the counties of Caithness, Sutherland and Ross & Cromarty. We are very conscious of the fragile nature of the rural economy across the UK and Europe, but acutely aware of the specific challenges to the northern counties, particularly the challenges of distance, transportation, infrastructure to support businesses and communities and young people. The work we have done though our trading company, North Highland Products and the Mey Selections brand has boosted the farming community since 2006 and our thanks go to those farmers, processors and retailers who have supported the brand and what it stands for; quality, high animal welfare and food production. We are confident that our work has created added value to what are already outstanding beef, lamb and other products. You will read shortly about the North Coast 500, the 516-mile touring route around the coastline of the North Highlands. Since it’s inception as part of NHI’s tourism work, it has become a global sensation. So much of what the project has achieved from it’s launch in April 2015 has been at the core of what NHI is all about. NC500 has created an unprecedented visibility for the best of the North Highlands, with an audience reach in 2019 of 5.5 billion. No other tourism initiative has had such a meteoric growth and impact and we are very proud that it was born out of NHI’s objectives to make a positive difference to people’s lives. The past three years has really seen the growth of the impact of NHI and we are grateful to all our supporters and stakeholders. We believe that the next three years will see a further growth of the influence and leadership we can bring to communities in the Northern Counties. Finally, my thanks for the work over the past four years to my Board, some of whom who have retired and to Tom Campbell, our Chief Executive, who has now moved to NC500 Ltd, through these transformational years. Without all of us working together, none of what you read about in this Review would have been achieved. And the last word is a thank you to our Patron, HRH, The Duke of Rothesay for his commitment and support, which has been unfailing and vitally important for us.

David Whiteford OBE Chairman 4

The Signature Project for 2014 -2019 - The NC500

“It has been absolutely spectacular. The run back from Ullapool to Inverness was as spectacular as anywhere we have seen in the world and we’ve been to Burma, South America – and it’s right on our back door”

Jeremy Clarkson, after filming for Series 3 of The Grand Tour on the NC500

The North Coast 500 (NC500) was developed as part of the Initiative’s strategic vision and plan to try and create sustainable communities through tourism. The tourism project board represented the area tourism groups from around the area, senior public sector representatives and industry experts. As well as the concept, we developed a ground-breaking business model and proposition. We sought private investment rather than public investment and we managed to secure that with key investors. NHI retains a significant share in North Coast 500 Ltd, as an investor and we are delighted by the progress made, using the NC500 and North Coast 500 trademarks which the company owns.

The route itself has become iconic in such a short space of time, now being widely regarded as the number one touring route in the world. These accolades have come as far afield as The Times, Lonely Planet, National Geographic Traveller and Conde Nast Traveller and it has been featured on major UK television channels as well as featuring in Amazon’s Grand Tour, with its own global audience. Between 2018 - 2019, the audience brand reach was 5.5 billion and it has an active social media following with over 100,000 followers across the digital channels and a social media reach of 20 million.

All of this is great news for the economy of the North Highlands. Glasgow University’s economic baseline study in 2017 showed that NC500 had created £9 million of additional visitor spend. The Moffat Centre of Caledonian University undertook an economic impact study in 2019 and estimated that the NC500 had created a GVA of £22.85 million to the Highland economy. xtended the season from 6 to 10 months and in 2017 it was anticipated that an additional 200 jobs would be created. NC500 Ltd now has 4000 personal members, 300 business members and 8 corporate partners. In 2017, we hit new heights with the launch of the Aston Martin DB11 NC500 which was limited to 18 cars globally and Aston Martin becoming the main route sponsor

Stephen Jardine, journalist, presenter and creator of Taste Communications on the impact of North Coast 500

“At Taste Communications, we specialise in helping brands and businesses tell their story. As soon as we met the NHI team behind the North Coast 500, we realised they had something exciting and different.

The brand itself was new but the road was long established and a lifeline for people living and working in the North Highlands. It is a means of getting places but along the way it encounters some of the most stunning scenery and natural heritage in Europe. At a time of growing environmental awareness, that has proved to be a compelling proposition for worldwide media.

On almost a daily basis we deal with media enquiries from all over the globe. Some want access to photography for a short article, others want to come and experience the route for major newspaper features and magazine spreads

The route has achieved global coverage in media ranging from the Rough Guides and the Wall Street Journal to CNN and the BBC. Conde Nast Traveller said “Scotland’s North Coast 500 May Be the Best Road Trip In The World”. In 201, the social media reach was an amazing 20 milllion and the overall media reach was an unprecedented 5.5 billion. That’s exposure that has been created for the Highlands and for Scotland which is truly an astonishing impact

Photographers and camera operators love the scenery and the views and journalists are intrigued by the story of the collaboration between the charity, public and private sectors to regenerate the tourism and economy of the North Highlands. NHI have really set the bar high for other charities in creating socio-economic impact. Impact that is meaningful and will be long-lasting.”

NHI at a Glance

The aim of the Initiative is to promote economic growth and to create sustainable communities in the North Highlands and the objectives of the Initiative are set out to give NHI the opportunity to operate across a comprehensive range of activity areas. These are also embedded in the charitable status of the company which it was granted in 2011. The Objectives are shown below:

The The promotion of Citizenship and development of The encouragement civic responsibility, Environmental community the arts, built of public volunteering and development participation in protection and environment the voluntary through urban and sport improvement and natural sector rural regeneration heritage, culture and science

Our sectors and how we Where we are active

deliver

• Mey • NC500 Selections

Food & Drink Tourism Black Isle Sutherland

Community Built Ross-shire Support Environment Caithness

• Project • Consultant Support Support

Achievements 2014 - 2019

Vision and Purpose

Our vision for the company in 3 years’ time serves as the framework for every aspect of our business

We will create We will create places opportunities for growth where funders want to and improvements in invest in local enterprise how people do and sustainable business. communities We will enhance communities where we operate in the North Highlands.

This vision describes what we need to accomplish to continue achieving sustainable, quality growth;

• People: Be the catalyst for opportunities and the inspiration for the people of the northern counties to be the best they can be. • Portfolio: To continually create and recreate a portfolio of projects that is transformational. • Partners: Nurture and grow network of funders and delivery partners to create mutual and sustainable value. • Planet: Be a responsible organisation that makes a difference by helping build and support sustainable communities. • Productivity: Be a highly effective and fast-moving organisation.

KEY OBJECTIVES

The Key Objectives for NHI are the major goals which need to be achieved over the next three-year period in order that the vision is realised.

Deliver 2019 projects that Help impact support positively in the the North livestock Highlands sector

Consolidate NHI's position as a Change Secure long- Agent term future with other HRH charities 2021

Deliver technical Use NC500 and funding as a support to catalyst for communities community projects

The impact of NHI in the North Highlands by Roy Kirk, Highlands & Islands Enterprise

“The formation of the North Highland Initiative in (NHI) 2005 with a focus on helping the North to help itself by bringing together farming, local businesses and the tourism industry and achieve economic and social impact mainly through the development of a powerful identity for the area proved a real opportunity for both organisations to join forces to help the people and businesses of the North. The initial success of Mey Selections was supported financially by HIE. This saw a period of growth in turnover and local farmers benefiting from an extra premium for their stock being part of the Mey Selections but also a recognition that a direct sales model offered some challenges for NHI. This early period saw recognition of the power of using a great brand (Mey Selections) to increase recognition in the marketplace that individuals could never achieve.

Following research from Glasgow Caledonian University the concept of a large touring route around the North Highlands was developed. The research was supported by HIE and in a changed approach from Tourism bodies in the UK, NHI decided to look at how to create a sustainable business model by raising private equity to develop a brand to showcase this beautiful area. This has brought tremendous benefit to the North in terms of spend and impacts on jobs through the development and use of a brand. With new engagement by NHI into helping deliver ways to help local communities help themselves we see a new approach by NHI in their role in the North. A pilot in helping the community of Brora offers promise in the future.

In over a decade of working together HIE values the impact and collaboration with NHI. It remains a good example of what can be achieved when public and private collaborate. It will continue to evolve and bring jobs, value and impacts to the North by allowing people to help themselves through the power of building brands and working together.” 12

Project Portfolio

Our project portfolio for the past three years and for the future will be focused on the same foundations of Food & Drink, Tourism, Helping Communities and the Built Environment. In 2016, the Initiative engaged Alan Jones, a highly experiences and successful management consultant. Alan’s expertise is in writing business plans, feasibility studies and option appraisals for community groups and turning them into successful funding applications and then project managing them to completion. NHI recognised the value in this experience and skillset and Alan’s work across the North Highlands not is done in conjunction with NHI and its goals, objectives and core values. The projects below are only a sample of the work done by NHI and the full list can be found at www.northhighlandinitiative.co.uk/projects

Food & Drink

Highland Bothy

The Highland Bothy is an amazing mobile food outlet which is being operated by The Storehouse at Foulis and has won widespread acclaim for it’s use of local produce. The Initiative and it’s trading arm decided to choose a local operator who is well known for using locally sourced produce and turning it into outstanding food for sale at events, weddings, corporate shows and anywhere there is an opportunity to sow the best of Highland produce.

Livestock

In 2006 when HRH established the Initiative, a group of farmers met with him at a “Seeing is Believing” event and were given the opportunity to work with a company established as part of the Initiative, North Highland Products. Since that time around 350,000 lambs and 100,000 cattle have come from the northern counties and principally sold to J Sainsbury as their top counter beef and lamb in around 50 stores in England and occasionally in Scotland itself. This has attracted a premium to the farmers of over £2.0M. The beef and lamb are sold under the Sainsbury brand, ‘North Highland’ and the added value of this relationship has created a lasting and important relationship with our farmers, ABP and Dunbia (our processors) and one of the UK’s leading retailers.

With the changing consumer demand and pressure on retailers, we have been very conscious that the support our livestock farmers have had has been in the face of many challenges. Not only have customers remained loyal to the North Highland brand, but we have seen the demand for cattle and lambs increase over the past three years. Notwithstanding the uncertainties around the future of farming, we are confident that our farmers are able to provide outstanding livestock and give our retail customer the best advantage in the marketplace with the North Highland brand. 13

Project Portfolio

Mey Selections

Mey Selections is the home retail brand of the North Highland Initiative and North Highland Products. While it has been used under licence, we decided to enter into a partnership with Loch Fyne Oysters (LFO)who have a huge export business for their fish and shellfish. They are now the brand agents for Mey Selections and they have already ensured placement of products in some of the top restaurants in the world, First Class airline cabins and top retailers in Europe and the Far East. We believe that this will prove to be a very successful partnership and one that will bring an important income stream to North Highland Products, our trading subsidiary. We are delighted that LFO have taken on other producers for cheese, honey and gin as well as beef, lamb and their own fish products. We can see that their work with other North Highland Producers will enable them to reach overseas markets which they would not have been able to on their own very easily.

Project Portfolio

Tourism

North Coast 500 and the Tourism Project Board

The NC500 is obviously the focus for the board as it is a significant shareholder in the company (North Coast 500 Ltd) which is developing and growing the route and brand presence. It is key for the Initiative that the route enables communities to benefit from it and to give benefit to the visitors on the NC500 and we will continue to work closely with the tourism representatives from the area tourism groups across the North Highlands. This group makes up the core of our tourism project board and they are important because of who they represent and the ability they have to act as a great sounding board for NHI and NC500.

During the next three years, we hope to strengthen the tourism board and ensure that they are working with the NC500 and tourism businesses to maintain high quality standards of service and product. While we do not envisage the immediate introduction of an awards scheme, it is something that the Initiative will be looking at to see if some examples of such schemes could be easily adopted, while not trying to replicate the great work done by the Highland Tourism Awards.

Community Support & The Built Environment

John O’Groats Mill

The John O’Groats Mill is the last of the great Caithness corn mills and was in operation just over a decade ago. The vision is to repair the mill buildings, machinery and water systems to full working order; to enable visitors to see a working Caithness mill and to demonstrate the transformation of locally grown grain. It is proposed that the facility will include a heritage and culture exhibition space, café and attractive retail space with a clear focus on local provenance. It has also been proposed that further phases of the project may see additional buildings and development around the site, housing accommodation or further businesses geared towards providing products and services for passing visitors. It is estimated that 150,000 people visit John O’ Groats annually.

North Highland Initiative has helped to create a new Scottish Charitable Incorporated Organisation(SCIO) and is is proposed that this group will be the funding applicant, and ultimate owner / operator of the project. The new charity is in discussions with the Scottish Land Fund

to seek funding to purchase the Mill, 2 cottages and adjacent field. 15

Project Portfolio

The John O’Groats Mill – one of the great Caithness corn mills ready for its restoration and new life

Loch Clash Bunkhouse Project

Artists impression of the new Loch Clash development

After securing ownership of the Loch Clash pier the Kinlochbervie Community Company have successfully cleared the site of previous structures and installed 5 caravan bays with electronic hook ups. These are currently managed through the local Spar shop, where visitors pay for their night’s accommodation, generating revenue for the community company.

It is proposed that an ecofriendly heritage/bunkhouse/café building is erected in the remaining space on the pier, fulfilling the community’s desire of improved facilities and a new focal point in the community. This building will provide flexible accommodation options and social space for visitors to the village improving amenities for the increasing tourist market and generating increased revenue for Kinlochbervie Community Company to reinvest in the community.

With the business plan completed, Kinlochberive Community Company, as the leaders of this project, are now in the process of identifying and approaching major capital funders with support from North Highland Initiative. The preparation of indicative designs is also underway, allowing a more robust projection of capital costs. A Charrette was held to further engage the wider community.

Project Portfolio

Russian Arctic Convoy Experience

Some of the structures from WW2 when Poolewe and Loch Ewe played a pivotal part in the war

The Russian Arctic Convoy Project looks to create a lasting legacy, preserving the history of the Russian Arctic Convoys in a sustainable and engaging manner for the public. The historically significant sites around Loch Ewe create an irreplaceable asset around which to tell the story, interpret artifact and encourage and stimulate information and history tourism in an already increasingly popular part of the world.

At present, the group displays it’s collection in two small rooms in former school building, however this building is soon to undergo significant renovation work, thus decanting the project and it’s artifacts. The group proposes to create a purpose built visitor attraction at a suitable location on the shores of Loch Ewe. This attraction will raise awareness of the heritage surrounding the area, including the site of the military gun buildings at Cove. The visitor centre will provide a space to house and interpret the existing collection and to create further interactive exhibits, whilst promoting routes, walks and key WWII sites surrounding the Loch.

Scourie Geopark Project

Part of the world renowned Shelly Collection

In the mid 20th century geologist Don Shelley became the first warden at Knockan in the Inverpolly National Nature Reserve, which lies within the North West Highlands Geopark area. Here he collected rock specimens, which were later to form the geological section of the now world- renowned Shelley collection of rocks, minerals and fossils. Our proposal is to create a Geocentre in Scourie that will safeguard and display the Shelley collection in a manner befitting a collection of such stature and geological significance. The proposed Geocentre will also provide a tourist hub for the Geopark area that will promote understanding and appreciation of its geological heritage and educational facilities for schools and universities studying the geology of the region.

Financial Review: Income & Expenditure

The main sources of income for NHI in the 2014 – 2019 period was through donations which accounted for 64% of the overall income, followed closely by Mey Selections royalties at 17%. Expenditure for the period 2014- 2019 was evenly spread across the four different categories; staff, project, business and office costs.

Donations

7% 7% Government Funding

Income from 17% Charitable Activities

Mey Selections Royalties 3% 64% Project Income 2%

Recharges

5% Staff Costs

19% Project Costs

Business Costs

51% Office Costs

24%

Financial Review – Project Costs

The costs involved with each project in our portfolio vary from project to project. Shown below are the sources of income and the costs attributed to some of the major projects which have been and are being undertaken.

North Coast 500

Wild North Festival 3% 2% 4% 5% Bothy

9% Islay Project

10% Restoration Project 58% JOG Mill 10% Wildflower Europe Community Initiatives

Corporate Governance Board of Directors Core Staff Our Partners

Board of Directors 2014 - present

David Whiteford OBE (2009 – present)

David was appointed Chair of the North Highland Initiative in 2009 David lives at Castlecraig in Easter Ross where he manages a farming business. David is Chair of Scotland’s Food and Drink Hub, a company formed recently to help small and medium sized food producers from all over Scotland. He is also involved in helping start-up businesses and advising young entrepreneurs. He was awarded the OBE in 2000 for services to Agriculture and elected a Fellow of the RSA.

James Furse (2010 – 2019)

James was appointed Executive Director of The Prince’s Social Enterprises Ltd in 2010 and became a member of a number of related boards, including Duchy Originals Ltd, and Chairs A.G. Carrick Ltd. James previously enjoyed a long career with the retailer the John Lewis Partnership which he joined in 198 and his final role with the John Lewis Partnership was as Managing Director of John Lewis Financial Services. James joined the board of NS&I (National Savings and Investments) in January 2012 as a Non-Executive Director

Peter Doyle (2010 - 2017)

Peter is responsible for the financial affairs of the Estate and Grosvenor Trusts and is Finance Director of Wheatsheaf Investments which holds the Estate’s non- property interests. He was a partner in KPMG from 1986 until his retirement from the Firm in 2002. While at KPMG he carried a number of senior roles, including as Head of London Office and as UK Head of Financial Services; he served on the UK Board for 3 years.

Ashe Windham CVO (2010 – 2017)

After 11 years service in the Irish Guards, during which time he soldiered all over the world, he acted as an Equerry to HM Queen Elizabeth The Queen Mother. Ashe is an Extra Equerry to HRH The Prince of Wales, Chairman of The Queen Elizabeth Castle of Mey Trust, acting as an Irish Guards Regimental Trustee as well as serving as a trustee to many other trusts.

Board of Directors 2014 - present

Willie Calder ( 2016 – present)

Willie is the founder and Chairman of Scrabster Seafood, one of Scotland’s most successful processors of fresh fish. Willie is a well- respected figure in the Caithness community.

Jock Campbell ( 2016 – present)

Jock is the founder and Chairman of JGC Engineering, a key supplier to the energy sector and supports young apprentices in the engineering sector and is well respected in both the business and local communities in Caithness

Toby Anstruther ( 2018 – present)

Toby Anstruther, who is passionate about food, was a founding director of the Fife Food Network and its “Food From Fife” initiative.