Framptons has set it sights on becoming the number one player in the UK oat milk category after a buyout by a Swedish investment firm secured the contract manufacturer’s future, its new boss has told The Grocer.
The sale to Gothenburg-based Profura ended months of uncertainty for the 125-year-old Somerset-headquartered group after its accounts cast doubt on the ability to continue as a going concern earlier this year.
Profura primarily invest in private Swedish companies but said the Framptons acquisition was aligned with its strategy to invest in companies with “a sound core business” and “high potential” for growth.
Framptons, which started life as an egg wholesaler in 1898, processes liquid egg products for major foodservice operators alongside its main business manufacturing milk and plant-based drinks for the likes of Müller, Delamere Dairy and Mighty Pea.
A process to sell-off the egg business is ongoing and once complete will leave Framptons to focus on the plant-based space.
Andrew Rimell – who has worked in the industry for more than 20 years for the likes of Yeo Valley and Sainsbury’s – has been promoted from operations director to MD.
He told The Grocer the business model was “much more streamlined” following the deal and would be predominately oat-based in the future.
“We’re targeting the supermarket private label market and want to offer customers a UK alternative for plant-based drinks that is carbon conscious. Most own label oat drinks come from overseas, but Framptons has an oat processing plant to make its own oat base from raw materials sourced within 50 miles of the factory,” Rimell said.
“We have that provenance and are in a great area to support British farmers, and we want to create a clear position in the market.”
The most recent set of Framptons accounts filed at Companies House for the year ended 30 June 2022 showed a small improvement in pre-tax losses to just more than £800k as revenues increased 33% to £50.1m.
The group said it expected to remain lossmaking in the 2022/23 financial year but added it had moved into profitability in the first quarter of 2023/24.