A fast growing alternative dairy brand in Yorkshire is on the hunt for a buyer after calling in administrators.
Leeds based Mighty Drinks was launched by two brothers in Doncaster in 2018, who set out to shake-up the plant-based market, making a plant-based drink you can put on cereal, in teas and coffees and in smoothies.
The company’s products – which include barista milk, dairy free kids milk, oat milk powders in a range of flavours, and high protein unsweetened pea milk – are sold in Sainsbury’s and Holland and Barrett, as well as through Ocado and the firm’s online store and through subscriptions.
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However, the company has been heavily impacted by trading headwinds, including soaring costs and diminished consumer confidence, which has affected its ability to scale up and achieve profitability. Latest accounts for the firm show that in 2023 it had around 19 members of staff, and also had a wholly owned subsidiary, called Mighty Drinks GmbH, registered in German which commenced trading in 2022.
James Clark and Howard Smith from Interpath were appointed joint administrators to Watkins Drinks Limited, which trades as Mighty Drinks, on June 17, after the directors of the company explored investment options available to them and realised that a solvent outcome was not possible.
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’.
“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.”
James Clark, managing director at Interpath and joint administrator, said: “We will now work with the company’s stakeholders to explore the options available, including seeking offers for the business and its assets, including the Mighty brand and related intellectual property. We would invite any parties who may be interested in acquiring the business to make contact with us as soon as possible.”