Cherrygood, one of the UK’s fastest growing juice drink companies, has secured a £600,000 investment from Clydesdale Bank in a bid to become a £100m brand in 10 years.
The company plans to build on its first year turnover of £1.2m with growth planned for the UK, Europe, Middle East and US.
The company was set up by John Heseltine and Martin Hall to sell ready-to-drink cherry juice made from Montmorency cherries, sourced from Michigan.
Cherrygood is currently listed in Tesco, Sainsbury’s, Asda and Morrisons and plans to increase UK sales to more than £10m within five years.
Clydesdale Bank will support Cherrygood with an Enterprise Finance Guarantee loan, as well as invoice discounting to aid cash flow, through its ‘Investing for Growth’ initiative; which enables well-performing UK trading companies to take advantage of expansion opportunities.
Paul Debney, business partner at Clydesdale Bank, said: “Having been approached by the team at Cherrygood, and hearing they had hit problems in their efforts to secure finance, we quickly sat down with John and Martin, to see whether through our ‘Investing for Growth’ initiative we could help.
“It was immediately obvious they knew the market, had a clear and shared vision, robust business plan and real drive and determination to become a major player in the juice drink market. They have ambitious plans and 2011 will see them bring a number of new products to market and I’m sure will see them achieve significant growth.”
Heseltine said: “Sales have been increasing month-on-month as consumers become more aware of the wonderful taste of our products and the amazing inherent health benefits of cherry juice.
“Success in business, like in life, is all about being in the right place at the right time, and we have struck on a product which not only tastes great, but has recognised health giving properties, and importantly has growing global appeal.
“We are the fastest growing new juice drink on the market set against a backdrop of decline in the juice and smoothies market which has seen sales plummet by £114m in the past two years.
“Ocean Spray has successfully built a billion pound global brand based on a single fruit, and given that cherries arguably taste better and are better for you, then I see no reason why we can’t achieve a £100m turnover within 10 years. And we are looking forward to growing with Clydesdale Bank.”