Drinks manufacturer raises glass to investment

A Yorkshire drinks manufacturer is set to increase its overseas distribution after receiving investment from equity house Lloyds TSB Development Capital (LDC).

Harrogate-based Intercontinental Brands distributes over 260 alcoholic and non-alcoholic products to supermarket chains, specialist off-licence groups and independent retailers.

It was formed in 1990 by Paul Burton and John Hibberd as a distributor of MD20/20, a flavoured fortified wine. In 1994 it launched its first self-developed product and in 1996 introduced a range of ready to drink products.

The firm – whose turnover has doubled to £43 million since 2003 – now manufactures and distributes a full product range spanning all alcoholic beverage categories which it provides to both on-trade and off-trade customers. It also supplies customers in Hong Kong and Germany and will look to further expand its export markets following the investment.

The Yorkshire office of LDC has taken a minority stake in the business and the investment will be used to drive strategic acquisitions and broaden its overseas distribution base.

Paul Burton, joint managing director of Intercontinental Brands, said: “The team has worked hard to nurture the customer relationships and establish the products and brands that have been at the core of our success.

“We’ve consistently invested in developing the business and this deal is a natural extension of that strategy. With private equity backing we can progress acquisition opportunities which will provide significant synergies and will assist us greatly as we look to further target growing international markets.

“We’ve brought LDC on-board because we wanted an investor with a local presence and a solid track record for supporting ambitious business’ expansion plans.

“Going forward we’ll be maximising our capability for speedy and efficient development of new products to remain at the pioneering end of brand creation in the beverage market.”

Marcus Black, investment director of LDC stated: “Most importantly, the team has a strong track record of identifying new trends and consumer shifts and acting quickly to develop innovative new brands which closely match the needs of their customer base.

“It’s a great example of an attractive development capital deal which will enable management to continue driving sales both in the UK and abroad.”