Latest news with #TomSwiers
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
