Yeo Valley Production has reached an agreement to acquire Epicurean Dairy (UK) and The Collective brand in the UK.
This acquisition brought together the broad manufacturing capabilities of Yeo Valley and the “innovative, taste-led ranges“ for which The Collective was known, the two businesses said.
The value of the deal was undisclosed. Private equity-owned The Collective was founded in New Zealand by chefs Angus Allan and Ofer Shenhav in 2009.
A UK arm of the business was set up by Amelia Harvey and the late Mike Hodgson – respectively the former sales director and MD of Gü – in 2011. The New Zealand arm of the company was sold off last year to Made Group.
Since launching in Britain, The Collective has grown steadily within UK retailers, launching a slew of premium and kid-focused yoghurt NPD over the past decade and establishing itself as a key brand in the yoghurt aisle.
Retail sales stood at £36.4m in 2024, according to NIQ data for The Grocer’s Top Products survey [52 w/e 18 September], making it the UK’s 12th biggest yoghurt brand.
But with the unveiling a raft of new products last year, from kids’ yoghurt pots to functional adult-targeted yoghurt pounches, The Collective has outlined ambitions to increase sales above the £50m mark over the next year to 18 months.
Yeo Valley Production has had a long-term partnership with The Collective, manufacturing the brand’s products. It said its new relationship with the brand would now enable more opportunities for The Collective to “deliver innovative dairy” to British fridges.
The agreement brought “together two businesses driven by their values”, the pair said in the wake of the deal’s announcement.
“The Collective brand is renowned for never compromising on the quality and market-leading taste of its products,” said Rob Sexton, CEO at Yeo Valley Production. “Add this to the values of the business, encapsulated in its B Corp accreditation, and we see this as a perfect fit with Yeo Valley Production.”
The partnership would also support with delivering Yeo Valley’s purpose to “nurture and nourish both people and planet”, he added.
The Collective joins soup brand Tideford and yoghurt brand Ubley within the Yeo Valley Production stable. The business saw sales climb by 15.5% to £365m in the 52 weeks to 26 May 2024, according to its most recent accounts. It is privately owned by the Mead family and now concentrates largely on the Yeo Valley Organic yoghurt brand, having sold off its dairy business – which supplied organic milk and cheese – to Arla in 2018.
“Yeo Valley Production is a long-time partner of The Collective and has been an integral part of the brand’s growth journey and success over the years,” said Sarah Smart, CEO at The Collective UK.
“The close alignment of the businesses’ values and visions to deliver natural, healthy, great-tasting and sustainable food that is better for people and planet, makes Yeo Valley the perfect home for the next stage of The Collective’s growth.
Smart will be staying on as CEO of the brand during the transition period to make sure it is “set up for future success” with current marketing director Tor Hunt-Taylor taking on a new general manager position.
Smart and Hunt-Taylor will be working with Sexton and his team throughout the transition phase and to establish the best structure to deliver the ambitious growth plan, supported by Yeo Valley investment. The business will remain as a separate unit and will continue to be based in London.
“This agreement will ensure The Collective brand continues to deliver taste-led innovation and great value,” added Sexton. “Together, we have ambitious plans to drive growth of delicious British dairy. It’s an exciting new chapter for us all.”
No comments yet