Smoothie business to raise £500,000
Article Date: Jul 15 2008The Original Smoothie Company, a recent entrant to the UK drinks market, is planning to raise £500,000 by a private placing of 4 million shares through corporate finance house City One Securities. The company will have a market capitalisation of about £1.75 million if the placing is fully subscribed.
Founded by Lord Simon Clanmorris in August last year, the business has achieved sales of £600,000 through a combination of franchising, licensing and events promotion. It has sold 24 franchises, to which it supplies frozen fruit.
The company’s management expects turnover to reach £2 million in the next 12 months and nearly £5 million the following year. Says MD Julian Gilbertson: ‘Our franchise strategy is enjoying rapid expansion and the current placing will enable us to invest further in distribution and marketing, including increasing the number of outdoor events supplied by The Original Smoothie Company.’
According to figures provided by the company, the UK smoothie market is worth £134 million a year, representing growth of 523 per cent over the past five years. Last year approximately 34 million litres of smoothies were consumed, up from 6.3 million litres in 2001.
Market research company Mintel estimates that sales volumes will almost treble by 2011, driven by the increasing popularity of health drinks in the UK and the government’s continuing “five-a-day” campaign to persuade people to eat more fruit and vegetables.
