Mighty Drinks: Leeds alternative plant-based milk brand enters administration amid 'trading headwinds' for industry
A Leeds-based firm that sells a specialist range of pea protein and oat milks has entered administration.
James Clark and Howard Smith from Interpath were appointed joint administrators to Watkins Drinks Limited, which trades as Mighty Drinks, yesterday (June 17).
Based at Castleton Mill off of Armley Road, Mighty Drinks is one of the UK’s fastest growing dairy alternative brands and sells its products nationwide from supermarkets and health stores.
However, the company has faced “trading headwinds” in recent years including rising costs and “fragile customer confidence”, which Interpath says is common with a number of other companies across the plant-based food sector.
The company explored investment options available, but took steps to file for the appointment of administrators when it became clear 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.”