Natural flavours manufacturer International Taste Solutions (ITS) has agreed a banking facility to purchase a warehouse and boost production capacity as the business continues to grow in the UK and overseas.
The expansion is set to increase capacity of liquid and powdered flavours by more than 20 times at the new site and will lead to the creation of new jobs at the business.
Founded 16 years ago by owner and MD Mike Bagshaw, ITS supplies tailor-made natural flavours to major food and drink producers.
The Berkshire-based business, which employs 40 staff, had outgrown its existing premises as demand from customers continued to accelerate.
The new warehouse will provide ITS with the space needed to scale production of liquid and powdered flavours, and invest in equipment and product development, while creating capacity for future growth.
ITS has bought an 8.2-acre industrial estate near Hungerford and will invest more than £10m to develop the new factory. The company said, when finished, it would be one of the largest natural flavour manufacturing sites in the UK.
The Hungerford site will include a full redevelopment of the existing factory, along with upgraded and extended office space.
ITS funded the move thanks to a commercial mortgage facility agreed with Barclays.
The financing is structured to enable the business to preserve cash for the fit-out and give it the investment required to make the site operational.
The deal builds on a long-standing relationship between ITS and Barclays, with the bank working closely with the management team to complete the transaction in line with the company’s target timeline.
“ITS started at my kitchen table 16 years ago, and this move into a new warehouse is a huge milestone in our journey,” Bagshaw said.
“We’ve built this business by being brave, scaling big, having fun and staying fiercely independent – and this expansion gives us the space and infrastructure to take the next step while maintaining those core values.
“Demand for our flavours continues to grow, and this new facility will allow us to better serve our customers, while creating a platform for the future.”
Tony Bullock, relationship director at Barclays Business Bank, added: “ITS is a brilliant example of a UK manufacturing business that has grown from a founder-led startup into a highly respected, innovative British producer with global ambitions. As the business outgrew its existing space, it was important to put the right funding in place to support its expansion without constraining day-to-day operations or investment plans.”
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