A historic Sunderland-based drinks firm has created 17 new jobs, acquired new machinery and brought new products to market after securing a £1 million asset based lending (ABL) facility from Lloyds TSB Commercial Finance.
Established over 120 years ago, Villa Drinks produces well-known brand names such as Hadrian Clear, Mr Fenwick’s and Villa Mixers. After starting out by supplying mixers to local bars in 1884, the company has grown to become a household name in the North East and enjoys popularity all over the world.
The firm also manufacturers packaging for its drinks and produces 75 million glass and plastic bottles a year.
To capitalise on peak summer trading, the business has recently launched Wild juices, aimed at children and sold in an animal shaped bottle, and Bolt energy drinks.
The funding package agreed will enable Villa Drinks to increase employee numbers from 37 to 54 and acquire new machinery to boost capacity and service increasing demand.
The business’ expansion has resulted in it recently securing a contract with a major national supermarket chain to supply its new range of Crystal juices, a ‘one of your five-a -day’ fruit drink.
The ABL financing package includes Lloyds TSB Commercial Finance’s Debtor Protection policy to safeguard against the risk of bad debt.
Owner of Villa Drinks, Malcolm Slatcher, who has 25 years experience in the bottling and soft drink industry, said: “This is an exciting time for us as we have a number of new products to launch and contracts to fulfill. This requires a strong cash flow so we looked for a comprehensive funding package which would provide the capital needed to service the increased demand.
“The ABL facility enables us to release the value of our existing assets to fund the investment required to move forward.
“Also, with Debtor Protection now in place we have a safeguard against bad debt, which gives us peace of mind as we continue growing the business.”
Andrew Bentley, regional manager for Lloyds TSB Commercial Finance said: “Malcolm has pursued a clear strategy to ensure that Villa Drinks has prospered in the downturn and benefitted the local economy by creating valuable new jobs. I look forward to working with the company and providing funding and guidance as it continues to grow.”
The firm was introduced to Andrew by Lloyds TSB Commercial banking, which had been brought in to look at the business’ banking needs and Malcolm was impressed with the Group’s joined-up financing approach.
Lloyds TSB Commercial relationship director David Dick said: “Malcolm approached us with a well-structured business plan which identified untapped demand and a strategy to capitalise on it. We worked with our colleagues in Commercial Finance to provide a tailored funding package, which will closely match the company’s needs as it expands.”
Sunderland City Council has supported Villa Drinks over the years, and was pleased to assist with this expansion.
Janet Snaith, head of business investment at Sunderland City Council said: “Villa Drinks is part of Sunderland’s heritage and we are pleased to be able to work alongside Lloyds TSB on this expansion project, to continue to support such an iconic local brand.”
April 2010