Latest news with #MightyDrinks
Wales Online
07-07-2025
- Business
- Wales Online
Major drinks brand to vanish from supermarket shelves after collapse
Major drinks brand to vanish from supermarket shelves after collapse Mighty Drinks, a milk alternative brand, is looking to appoint administrators for the brand and their intellectual property Mighty Drinks could be found in Sainsbury's and major supermarkets (Image: Tartezy via Getty Images ) A well-known beverages company stocked in supermarkets throughout the UK has entered administration, according to the firm. Mighty Drinks - which specialises in dairy-free alternatives - is seeking to appoint administrators for both the brand and its intellectual property. According to The Sun, James Clark and Howard Smith from Interpath Advisory are examining potential options and hunting for prospective purchasers. Interpath's food and beverage lead explained that it needed futher investment which was not readily available. Tom Swiers, who leads food and beverage operations at Interpath, explained: "Unfortunately, this came at a point in the company's cycle where it required further investment." Once found in ASDA, the drinks company has not gone into administration (Image: Alan Morris via Getty Images ) However, this funding was not coming in from 'typical investors'. For money-saving tips, sign up to our Money newsletter here He added: "This was not forthcoming from typical investors in this space, nor was it attractive to typical special situations investors, given the relatively early stage of the company's development." Article continues below Company directors started seeking funding when their plant-based milk products failed to achieve greater profitability, ultimately leading to the appointment of administrators. The Yorkshire-based enterprise was founded by siblings Tom and Nick, who initially produced pea-based milk in their bathtub, reports Bristol Live. The pair explained their concept arose from acknowledging widespread complaints about existing dairy alternatives, particularly regarding flavour and protein levels, believing "real progress should be better than the original". The duo aimed to "shake up the dairy alternative market." This was during a period when non-dairy options were gaining traction as consumers moved away from traditional cow's milk. Mighty Drinks has broadened their distribution of oat and pea beverages, along with dehydrated powders, across a range of UK retailers including Asda, Sainsbury's and Morrisons, as well as online. Article continues below However, in recent times, Mighty Drinks has grappled with several hurdles such as escalating costs and a downturn in consumer spending. The firm stated that their primary focus moving forward is profitability, rather than expansion.
The Sun
03-07-2025
- Business
- The Sun
Major food brand that sold household staple in Asda & Ocado went bust owing £22MILLION in debt
A UK-BASED food firm that supplied a popular product to supermarkets has gone into administration. The company provided over 3,000 British shops with fresh basil and salad mixes. 2 Major farming start-up Jones Food, which is backed by Ocado, officially entered administration in April. The vertical farming trailblazer has previously been hailed as a game-changer for Britain's farming industry. This set-up has allowed vegetables to be picked next door to delivery depots, offering shoppers access to fresher than ever produce. However, the farming venture has struggled after Ocado signalled that it was not willing to provide more cash to the start-up. After failing to find a new backer, the company is unlikely to recoup the millions of pounds it pumped into the start-up. Costs of adminstration This includes £8.6 million of initial investment in 2019 and a £3.7 million cash injection in 2023. Filings for Jones Food's administration suggest Ocado could be facing a loss of over £20 million. Administrators for the start-up said funds from the sale of the business' assets would go toward paying off expenses and creditors. This marks another setback for Ocado, which has been battling to stem losses and churn out more cash in the face of higher debt costs. It has made heavy cuts to its research team in an attempt to help boost profit and was recently hit by a tripling of its debt interest costs after refinancing looming bonds. Mighty Drinks Enters Administration: What Went Wrong for the Plant-Based Brand? Ocado Group Ocado made a series of investments into tech start-ups in an attempt to break away form its image as an online grocer. The company struck a deal with M&S in early 2019 to run the online grocer Ocado Retail as a joint venture. Since then, Ocado Group has been focused on its robotic warehouses, which it has sold to other companies including Kroger in the US. The collapse of Jones Food comes just over a year after the start-up opened its second vertical farm. Ocado had said the farm was a 'coming-of-age for agricultural technology in the UK'. What does going into administration mean? WHEN a company enters into administration, all control is passed to an appointed administrator. The administrator has to leverage the company's assets and business to repay creditors any outstanding debts. Once a company enters administration, a "moratorium" is put in place which means no legal action can be taken against it. Administrators write to your creditors and Companies House to say they've been appointed. They try to stop the company from being liquidated (closing down), and if it can't it pays as much of a company's debts from its remaining assets. The administrator has eight weeks to write a statement explaining what they plan to do to move the business forward. This must be sent to creditors, employees and Companies House and invite them to approve or amend the plans at a meeting. A Notice of Intention is used to inform concerning parties that a company intends to enter administration. It is a physical document which is submitted to court, usually by directors aiming to prevent a company from being liquidated. Like with a standard administration process, a Notice of Intention stops creditors from taking out any legal action over a company while they try and rectify the business. It desribed Jones Food as having 'cracked the code for accessible, sustainable, premium food being grown all-year-round, at a super-competitive price'. The farm provided herbs including basil, coriander, and flat-leaf parsley for Ocado and Asda. However, vertical farming start-ups, which involves growing food on shelves, have struggled to become profitable. In filings for Jones Food, administrators said it was loss-making as soon as it was operational. They said this is because it was running at around a third or half of its factories' capacity, and demand from customers was variable. 'Jones Food is an innovative business, and Ocado Group has been a supporter and shareholder of the company for a number of years," Ocado said at the time of the administration. "As we await the outcome of the administration process, our thoughts are with all those involved with Jones Food.' More business stories And a major drinks brand sold in Asda, Sainsbury's, and Morrisons has also gone into administration. The UK's biggest music retailer also closed its doors last month. Plus, a trendy restaurant chain closed down all its high street locations. 2
Scottish Sun
27-06-2025
- Business
- Scottish Sun
Major drinks brand sold in Asda, Sainsbury's & Morrisons COLLAPSES into administration as boss admits ‘times are tough'
It comes amid challenges in the industry more broadly GLASS EMPTY Major drinks brand sold in Asda, Sainsbury's & Morrisons COLLAPSES into administration as boss admits 'times are tough' A MAJOR drinks brand that is sold at UK stores has gone into administration due to the tough times they are facing. Producer of milk alternatives - Mighty Drinks - is looking to appoint administrators for the brand and their intellectual property. 1 Mighty Drinks' 'not milk' alternatives were also sold online by Amazon Credit: Amazon Consultants at Interpath Advisory, James Clark and Howard Smith, along with stakeholders are exploring available options, offers and searching for buyers. Food and drink leader at Interpath, Tom Swiers, said: 'Unfortunately, this came at a point in the company's cycle where it required further investment. 'This was not forthcoming from typical investors in this space, nor was it attractive to typical special situations investors, given the relatively early stage of the company's development." Mighty Drinks enters administration The company's plant-based milks have struggled to become more profitable, and the directors began looking at options for investments, and eventually for appointing administrators. Mr Swiers links Mighty Drinks' change in circumstances a reflection of broader changes in the alternative foods sector. What does going into administration mean? WHEN a company enters into administration, all control is passed to an appointed administrator. The administrator has to leverage the company's assets and business to repay creditors any outstanding debts. Once a company enters administration, a "moratorium" is put in place which means no legal action can be taken against it. Administrators write to your creditors and Companies House to say they've been appointed. They try to stop the company from being liquidated (closing down), and if it can't it pays as much of a company's debts from its remaining assets. The administrator has eight weeks to write a statement explaining what they plan to do to move the business forward. This must be sent to creditors, employees and Companies House and invite them to approve or amend the plans at a meeting. A Notice of Intention is used to inform concerning parties that a company intends to enter administration. It is a physical document which is submitted to court, usually by directors aiming to prevent a company from being liquidated. Like with a standard administration process, a Notice of Intention stops creditors from taking out any legal action over a company while they try and rectify the business. History of the company The Leeds-based company started with two brothers, Tom and Nick, who were making pea milk in their bath tub. For them, "real progress should be better than the original", an idea which emerged from common criticisms of milk alternatives around their taste or protein content. At a time when there was increasing shift away from cows milk around the UK, the brothers were hoping to "shake up the dairy alternative market". Their brand then expanded to supply oat and pea drinks, as well as dehydrated powders at various retailers around the UK, such as Asda, Sainsbury's and Morrisons, as well as online. In recent years, however, Mighty Drinks have faced a number of challenges, including rising costs and declining consumer spending. Martin Lewis explains how to get free groceries at Asda, Sainsbury's and Co-op There is now a heavier focus on profitability moving forward, rather than growth. Wider woes in the food and drink sector The news of Mighty Drinks' struggles comes as "times are tough" for the UK food and drink manufacturing industry. There has been reported declining confidence in the segment, according to survey conducted earlier this year by the industry body the Food and Drink Federation. The survey suggested a decline in confidence among businesses to -47 per cent in the final months of 2024, compared to having been at -6% in the previous quarter. Changes to national insurance contributions were also a factor in the 12,500 respondent's more pessimistic outlook, with inflationary pressures and uncertainty around supply chains. The Sun has contacted Mighty Drinks for comment.
The Sun
27-06-2025
- Business
- The Sun
Major drinks brand sold in Asda, Sainsbury's & Morrisons COLLAPSES into administration as boss admits ‘times are tough'
A MAJOR drinks brand that is sold at UK stores has gone into administration due to the tough times they are facing. Producer of milk alternatives - Mighty Drinks - is looking to appoint administrators for the brand and their intellectual property. 1 Consultants at Interpath Advisory, James Clark and Howard Smith, along with stakeholders are exploring available options, offers and searching for buyers. Food and drink leader at Interpath, Tom Swiers, said: 'Unfortunately, this came at a point in the company's cycle where it required further investment. 'This was not forthcoming from typical investors in this space, nor was it attractive to typical special situations investors, given the relatively early stage of the company's development." Mighty Drinks enters administration The company's plant-based milks have struggled to become more profitable, and the directors began looking at options for investments, and eventually for appointing administrators. Mr Swiers links Mighty Drinks' change in circumstances a reflection of broader changes in the alternative foods sector. What does going into administration mean? WHEN a company enters into administration, all control is passed to an appointed administrator. The administrator has to leverage the company's assets and business to repay creditors any outstanding debts. Once a company enters administration, a "moratorium" is put in place which means no legal action can be taken against it. Administrators write to your creditors and Companies House to say they've been appointed. They try to stop the company from being liquidated (closing down), and if it can't it pays as much of a company's debts from its remaining assets. The administrator has eight weeks to write a statement explaining what they plan to do to move the business forward. This must be sent to creditors, employees and Companies House and invite them to approve or amend the plans at a meeting. A Notice of Intention is used to inform concerning parties that a company intends to enter administration. It is a physical document which is submitted to court, usually by directors aiming to prevent a company from being liquidated. Like with a standard administration process, a Notice of Intention stops creditors from taking out any legal action over a company while they try and rectify the business. History of the company The Leeds-based company started with two brothers, Tom and Nick, who were making pea milk in their bath tub. For them, "real progress should be better than the original", an idea which emerged from common criticisms of milk alternatives around their taste or protein content. At a time when there was increasing shift away from cows milk around the UK, the brothers were hoping to "shake up the dairy alternative market". Their brand then expanded to supply oat and pea drinks, as well as dehydrated powders at various retailers around the UK, such as Asda, Sainsbury's and Morrisons, as well as online. In recent years, however, Mighty Drinks have faced a number of challenges, including rising costs and declining consumer spending. Martin Lewis explains how to get free groceries at Asda, Sainsbury's and Co-op There is now a heavier focus on profitability moving forward, rather than growth. Wider woes in the food and drink sector The news of Mighty Drinks' struggles comes as "times are tough" for the UK food and drink manufacturing industry. There has been reported declining confidence in the segment, according to survey conducted earlier this year by the industry body the Food and Drink Federation. The survey suggested a decline in confidence among businesses to -47 per cent in the final months of 2024, compared to having been at -6% in the previous quarter. Changes to national insurance contributions were also a factor in the 12,500 respondent's more pessimistic outlook, with inflationary pressures and uncertainty around supply chains. The Sun has contacted Mighty Drinks for comment.
Yahoo
20-06-2025
- Business
- Yahoo
UK alt-milk maker Mighty Drinks goes into administration
UK-based alternative milks brand Mighty Drinks has appointed administrators for the business after facing recent "headwinds". The oat and pea milks producer appointed James Clark and Howard Smith from Interpath as joint administrators, a statement from the financial advisory group said yesterday (17 June). Mighty Drinks produces a range of pea protein and oat milk products which are sold across the country in major retailers such as Sainsbury's, Asda and Tesco. In the statement, Tom Swiers, food and drink sector lead at Interpath, said: 'There has been an increasing focus on profitability within all aspects of the 'alt' category, following the investment boom of a few years ago. "It is no longer simply a case of, 'growth as number one priority'". Interpath said Mighty Drinks had seen "headwinds in recent years", such as increasing costs and "fragile consumer confidence", which has affected its ability to scale and reach profitability. While the company's directors intended to look into investment options, "but when it became clear that a solvent outcome was not possible, they took steps to file for the appointment of administrators". Swiers added: 'The Mighty team has created a great product, with an exciting kids-milk range set to launch with retailers given the allergen free benefits of pea-protein, and a path to profitability from improved margins and increased volumes. "Unfortunately, however, this has come at a point in the company's cycle where it required further investment which was not forthcoming from typical investors in this space, nor was it attractive to typical 'special situations' investors given the relatively early stage of the company's development.' Companies House filings for Watkins Drinks Limited, which trades as Mighty Drinks, showed the group had racked up £12.1m in losses in 2023, a roughly £4m deeper loss than it booked the previous year. Managing director at Interpath and joint administrator for Mighty Drinks James Clark said Interpath would look into "the options available" for the company with its stakeholders. Potential avenues being explored include "seeking offers for the business and its assets, including the Mighty brand and related intellectual property", he added. Just Food has contacted Mighty Drinks for comment. Plant-based milk has become an increasingly competitive space in UK grocery retail, and has resulted in some companies pulling brands. In January, Arla Foods announced its intention to remove its Jörd alternative milks brand from UK retailers. The brand had been launched in 2020 and was the company's first move in plant-based milk alternatives. Two years ago, Nestlé also announced it was pulling its Wunda alt-dairy brands from UK and Ireland retail, alongside its meat-free Garden Gourmet range. Despite a slowing momentum for the plant-based milk category in the UK, in Novemeber, Oddlygood, owned by Finnish dairy company Valio, announced it had acquired UK rival Rude Health. At the time, the group said the move intended to bolster its market share in plant-based drinks in the UK. "UK alt-milk maker Mighty Drinks goes into administration" was originally created and published by Just Food, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
