The North Wales food manufacturer of private label and leading brands is targeting growth as consumer demand rockets, with support from specialist lender Shawbrook.
The Wellbeing Group, formed by Elysian Capital’s acquisition of Wrexham-based Wholebake and Deeside Cereals in 2021, is ramping up production following organic growth for its private label products.
The move comes as market researcher Euromonitor forecasts the global health and wellness snacks market to grow at a compound annual growth rate (CAGR) of 5.8% between 2020 and 2025. Other research from Global Health & Wellness finds that consumers are willing to spend 30% more for products with perceived health benefits.
The Group has strong growth aspirations driven by increased demand and planned investment across their manufacturing sites in Deeside, Wrexham and Corwen. The company says this will strengthen its portfolio of weight management, sports nutrition, toddler snacking, healthy indulgence, vegan diets and digestive health.
The Wellbeing Group and Elysian Capital turned to Shawbrook to secure a multi-million-pound deal to give the firm more flexibility to step up production and meet higher demand. Shawbrook supported them with a bespoke asset-based lending facility, consisting of an invoice discounting facility, property loans, plant and machinery loans and a cashflow loan.
Simon Faithfull, CEO at Wellbeing Group, said:
“Consumers are increasingly opting for healthier snacks and cereals over more traditional confectionary or sugary options. This is buoying demand for the health food brands we manufacture and creates a significant opportunity for the group to grow.
“The finance from Shawbrook offers us greater flexibility to ramp up production, and to plan future investments in our North Wales manufacturing facilities with greater confidence.”
Matt Greenhalgh, relationship director at Shawbrook, said:
“We have backed Deeside Cereals for a number of years, and it’s been excellent to see the level of opportunity created for the firm under The Wellbeing Group.
“As well as Wholebake, The Wellbeing Group has a comprehensive offer in health food manufacturing, positioning it well to target strong growth in the category. Our latest support of the firm gives them the ability to maximise the opportunity at hand.”
Legal Advisors – Squire Patton Boggs (Shawbrook), Stephenson Harwood LLP (Wellbeing Group) and TLT LLP (Wellbeing Group); Valuations support – SIA Group; Financial Due Diligence – Kroll Advisory