Flavour of the Month or a Recipe for Success

27 Feb 2019

Everyone must eat and drink! Investing in food and beverages offers an excellent sector for investors as demand is assured. But what we eat and drink is increasingly being questioned by consumers, retailers and scientists alike. If there was ever a great time to start a healthy food business then surely it’s now?


But how can investors tell the wheat from the chafe when it comes to funding a new food or drink start up? If you are thinking of investing consider this:  the UK’s demand for healthy food, drinks and snacks is growing a pace. It’s being driven by the need for free-from foods, protein-based products and now the emerging growth in plant based food and drink.


At Severn Seed Finance we have seen a rise in natural food and beverage start-ups seeking funding. An emerging sector uses plant based ingredients such as natural energy drinks which use the Guayusa leaf from the Amazonian rain forest. Positioning in the Energy drinks market means they are up against big energy brands such as Red Bull (75 Bn cans sold) and Monster ($3.37Bn annual sales). On the food front Honest Bean ®  is introducing a Fava bean based humus as an alternative to the chick pea mass produced product in a multi-million Dollar market.



Retailers too are encouraging the growth of new natural food and drink products and lowering barriers to market entry for new producers to test demand for their products. Sainsbury’s Future Brands initiative is aimed at supporting start ups in the food industry and developing new brands.


Food and beverage is also a very active sector on the M&A front with 253 transactions in the UK alone on 2017.


The food and beverage sector is massive, retailers are seeking new products to meet changing consumer demand and actively assisting start ups to enter the market. Exits have exhibited consistent activity and good returns.


So definitely an exciting sector for investors to consider at a very early stage.


If you are a business currently seeking investment or an investor looking to invest, please visit our website https://www.severnseedfinance.com/ for further information.





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