Food and drink companies have raised more than £1.2m on crowdfunding platforms so far in 2015 as this alternative source of finance continues to grow in popularity.
Indian wine brand Soul Tree, natural ice lolly company Lickalix and jam maker Super Jam are the latest to complete successful campaigns on the Crowdcube website, with all three being overfunded.
Choc+, which sells in Sainsbury’s, is also within touching distance of hitting its £100k target.
Birmingham-based Soul Tree, which has ambitions to put Indian wine on the map, completed its £350k pitch this week, bringing in £388k from 235 investors for an 18% equity stake.
Founded by Alok Mathur and Melvin D’Souza in 2010, Soul Tree is now listed in close to 700 outlets across the UK, including Michelin-starred restaurants and premium boutique hotels, and has 26 distributors.
Its portfolio includes two reds, a white, a rosé, an oak-matured reserve and a sparkling wine which are contract-produced from grapes grown by small, independent farmers in India’s growing district of Nasik. The company is planning to use the cash to increase production levels, develop new products and raise the profile of the brand.
Soul Tree co-founder D’Souza commented: “Having individuals who are investors and consumers is a great strength as we have 235 people from all walks of life who own a part of the business and act as advocates and brand evangelists.”
It expects to double in size this year and make a profit from 2016, with sales of almost £12m by 2019. It is also launching in the US this month with a lead importer in place, and plans to target the East of the country.
Food and drink companies have raised almost £16m on Crowdcube since it launched in 2011, accounting for 50 of the 188 pitches funded. Co-founder Luke Lang said: “Crowdfunding for the food and drink sector is becoming an increasingly popular route to raising capital. The popularity of the food and drink industry reflects the nation’s appetite to support exciting, upcoming British brands.”
It comes as winemaker Domaine Chanzy launched a £1.9m pitch this week on the Seedrs platform as part of its plans to list on AIM - the first-ever crowdfunding campaign for an IPO.
Lickalix closed its £225k pitch at the end of January with 219 investors on board ploughing £248k into the London ice lolly business. Launched in May 2014, the company makes gluten, dairy and lactose free low-sugar products, and hopes to grow “substantially” this year.
Super Jam, which makes 100% fruit jams, is another beneficiary of crowdfunding, with £308k raised from a £250k pitch. It was founded 10 years ago by Scottish entrepreneur Fraser Doherty, who was awarded an MBE in 2014 for services to business, and now supplies hundreds of Waitrose stores across the country.
Healthy ice cream brand Oppo, another luxury product listed in Waitrose, also secured more than £300k at the start of the year - overfunding by £200k to satisfy investor demand - on Seedrs.
No comments yet