Free-from food company Kirsty’s is set to launch food-to-go ranges and create new jobs after securing a £2m investment – the first announced by a new fund.
Kirsty’s is already a leading ‘free from’ producer of ready meals including everything from pizzas to pies, employing 55 people at its Harrogate base. Now the company is set for its next phase of growth after becoming the first business in the Yorkshire and Humber region to strike a deal from the £660m Northern Powerhouse Investment Fund II (NPIF II) launched in March.
Kirsty’s has raised £2m from NPIF II – Mercia Equity Finance, which is managed by Mercia and part of the Northern Powerhouse Investment Fund II. The company was launched by Kirsty Henshaw in 2009 after she discovering that her son Jacob had multiple food allergies, including to nuts, as well as dairy intolerance.
She struggled to find healthy and tasty food options for him, so experimented with her own recipes. After initially selling small batches of ice cream to health food stores she garnered interest from major retailers such as Tesco, and took her business onto BBC’s Dragons’ Den in 2010.
TV Dragons Peter Jones and Duncan Bannatyne invested in the business, and Ms Henshaw bought back their shares three years later after launching her meals into UK supermarkets. Ms Henshaw says she plans to use the funding to launch new ‘food to go’ ranges and develop other new products.
The investment is expected to add 15 new jobs to the team in the next six months at the firm’s Harrogate factory. Ian Kent, the former commercial director of Stateside Foods, has been appointed as chair as part of the deal
Kirsty’s ‘healthy’ ready meals are low in calories and free of allergens including nuts, dairy, gluten and wheat. The company supplies all the major supermarkets and operates the only allergen-free factory of its size in the UK, which was opened in 2020 to bring all of its manufacturing operations in-house.
Ms Henshaw said: “Nothing beats fresh, home cooked food, however with modern life being busier than ever, we know that’s not always achievable, especially for those with allergies who have to prepare everything from scratch. We set out to create a range of healthy, convenience foods that everyone could enjoy whether they have an allergy or not. Our success is a real testament to our hard-working team. This funding will enable us to take the business to a new level and fulfil its true potential.”
Chris Borrett of Mercia Ventures said: “Kirsty is an incredible founder with a deep passion, an unstoppable drive and infectious personality. She has built a strong brand, a great team and a defensible platform for future growth. As our population becomes more aware of what they consume, and with busy lives and more dual income households, Kirsty’s is poised to truly lead the healthy convenience and allergen-free sectors. With strong relationships with all the major UK retailers and a roadmap of exciting new products, we are excited about the growth journey ahead.”
Ken Cooper, managing director at British Business Bank said: “Like so many of the UK’s entrepreneurs Kirsty has a dedication to making her business a success. For 15 years consumers have sought out her product, and now with an injection of the right kind of finance she will be able to grow that market. In the current environment sectors such as manufacturing can find it increasingly difficult to remain competitive and attract funding. This investment shows that the Northern Powerhouse Investment Fund II is open for business and available to support ambitious businesses across the North.”
The NPIF II builds on the first Northern Powerhouse Investment Fund, and allows businesses across the North to access up to £5m in equity finance to start up, scale up or continue their growth journey.
Original artice – https://business-live.co.uk/all-about/yorkshire-humber
