The UK-based fund manager and private equity investor Octopus Investments has backed Sweet Cred Limited, the branded children’s novelty confectionery business, with GBP 5m expansion capita
The UK-based fund manager and private equity investor Octopus Investments has backed Sweet Cred Limited, the branded children’s novelty confectionery business, with GBP 5m expansion capital financing. Octopus was introduced to the deal by Acanthus, a London-based corporate finance firm.
Based in Sidcup, Kent, Sweet Cred sells a wide range of products which combine sweets with toys that are themed around the five cartoon characters in the Sweet Cred gang. The characters give the brand a powerful global appeal to children between the ages of 3 and 10. The range is already being sold through distribution partners in Europe, the United States and the Middle East. In the UK Sweet Cred has established distribution through the main wholesalers and retail distribution through the major multiple retailers, motorway service stations, and leading toyshop chains.
The brand has been developed entirely in house by the Sweet Cred team which has been together since 2004 when the business was founded by Clive Garrad, who is a successful and well connected entrepreneur from the food supply sector. Many of the senior team had previously met when working with Clive in his previous business which distributed the energy drink, Red Devil. The UK rights to that brand were sold successfully to Britvic in 2003.
This transaction represents an important stage in Sweet Cred’s development following its rapid growth into both domestic and international retail chains. Octopus has come in as a partner to finance working capital growth and to assist with the strategic development of the business.
Commenting on the successful completion of the transaction, Clive Garrad said: ‘We have received considerable global interest in our products and the time has come for us to really scale up the business. In selecting a partner to help us fund this expansion we were looking for a team that brought more than just capital to the party. Octopus understands brand building companies and therefore knows what a company like Sweet Cred needs at this stage. We are delighted to partner with Octopus and are looking forward to taking the business forward.’
Alistair Brew from Octopus Investments said: ‘We are delighted to be backing the Sweet Cred team which has developed a branded product range in an attractive and growing sub-sector of the children’s confectionery market. With the emphasis on ‘more treat, less sweet’, the product offering makes a powerful proposition to the child, the parent and the retailer. Sweet Cred has excellent distribution relationships both in the UK and globally and we look forward to helping the company maximise its full potential.’
Alistair Brew from Octopus will join the board of Sweet Cred Holdings Ltd.
Octopus has introduced to the business Steven Joseph, who will join the board as non-executive Chairman. Joseph has been involved in the food industry and private equity investment for 15 years in an executive and non-executive capacity. He is currently lead investor and Chairman of Tangerine Confectionery, which is the UK’s largest independent private label confectionery business.
Also joining the board as a Non Executive Director is Harry Drnec, who recently resigned as Managing Director of Redbull: a position he held for 11 years, during which time the Redbull brand came to define and dominate its sub-sector.
