Condiment challenger brand Sauce Shop is aiming to become a household name after winning backing from a syndicate of angels led by former Samworth Brothers boss Flor Healy.
The latest increase, which is also being supplemented by crowdfunding, comes as the company launches its sauces in 300 Asda stores nationwide.
This is the brand’s third major retail listing, increasing its distribution outlets to over 7,000 across Sainsbury’s, Morrisons, Booths and Whole Foods Market, as well as supplying the food industry. restoration.
Sauce Shop is currently overfunding after hitting a £400,000 target on crowdfunding platform Crowdcube and has so far raised £660,000 from 520 investors, valuing the business at over £6m.
Former Samworth and Kerry Foods CEO Flor Healy, who sits on the board as chief adviser, also participated in the round, leading a syndicate of angel investors.
The company plans to use the money to continue its retail expansion, improve the efficiency of its manufacturing site and fuel its growth.
Founded in 2014 by Pam and James Digva, Sauce Shop has generated total revenues of over £9m to date, with sales of £3.1m in 2021.
The couple launched the brand after spotting a gap in the market for more natural artisan condiments, made with as few ingredients as possible and containing less sugar than traditional sauces.
“This [funding round] is the push Sauce Shop needs to become a household name,” said James Digva.
The UK condiments market was worth £767m last year [Kantar 52 w/e 20 March 2022]but traditional brands such as Heinz, HP, Hellmann’s and Colman’s were in decline, according to the latest Grocer Category Report.
“The table sauces category is crying out for disruption by an artisanal challenger brand,” Digva added. “With consumers choosing more targeted brands and truly caring about what they put on their plate, Sauce Shop is perfectly positioned to meet the category incumbents’ challenge.”
Sauce Shop started life on a stall in a Nottinghamshire farmers market, before winning its first listing with Sainsbury’s in 2018.
The company now produces around 50,000 bottles of ketchup, barbecue sauce, hot sauce and cooking sauce per week from its Nottingham factory.
The latest raise is the third crowd round for Sauce Shop, which received £400,000 from 910 investors over two rounds in 2018 and 2019.
Healy said: “There is a fabulous record of growth at Sauce Shop and the team can be very proud of what has been delivered. It’s extremely rewarding to be able to work with two founders and their team, who are so passionate about the business, creating a product that sells because of its quality.
Sustainability is central to the brand’s model, with seaweed shrink bands instead of plastic used to seal bottles and bubble wrap ditched in favor of paper and cardboard packaging for all orders.
The company is carbon negative, working with Ecologi to plant a tree with every order placed through the online store.