Member Article

Bottling firm wins six-figure North East Angel funding

A Sunderland-based drinks company has won a six-figure investment from the North East Angel Fund (NEAF) to protect jobs and increase orders.

Contract Bottling Ltd is a fast-growing firm with a workforce of 41 employees and a factory based in Southwick.

Funding will enable the company to grow and buy more ingredients to support its product line.

The company turned over £5.6m last year, and it hopes to reach £8m this year, after it bought Villa Soft Drinks in January last year in a pre-pack administration.

Managing director, Martin Thornton, commented: “We are very pleased to receive this investment. We needed funding to grow the business and take advantage of the growth in this sector.

“When we talked to Rivers Capital, they could see what it was we were trying to achieve and they really bought into our vision for the future of the business. It’s great news for everyone involved at Contract Bottling.”

Law firm, Ward Hadaway advised on the investment, which was managed by Rivers Capital Partners from a £125m fund.

Rivers Capital Partners said the business deserved funding because of its strong turnover and sales, although it was not in a position to access funding from traditional routes.

Director, Jonathan Gold, commented: “The North East Angel Fund is more than happy to step into this sphere of corporate finance and is keen to back businesses which have a proven track record and need further capital to ensure they can continue to expand and benefit the North East market.

“One of the aims of the Fund is to safeguard jobs in the North East region and the investment into Contract Bottling Ltd will keep a motivated workforce in employment and substantially improve Sunderland’s economy.’’

Advisors Ward Hadaway said the partnership with Rivers Capital was a “rewarding experience”, after previously working with the company on a number of investments.

Natalia Blagburn from Rivers Capital Partners praised the law firm, and said “They really know what they are doing, are highly professional and efficient at completing the investment to a tight deadline.”

NEAF has a £7.5m share of capital from Finance for Business, which it invests in small companies with growth potential throughout the North East region.

This was posted in Bdaily's Members' News section by Miranda Dobson .