Cheltenham-based Gravity Drinks is celebrating a significant milestone as it secures a £4.5 million financing deal aimed at enhancing its export operations. This strategic funding will support the company’s ambitious plans amidst a surge in international demand.
Strategic Backing from HSBC and UK Export Finance
The financing package, consisting of £3 million in receivables finance and £1.5 million in trade finance, comes from the esteemed HSBC, with partial backing from UK Export Finance (UKEF). This financial support equips Gravity Drinks to scale production capacity and efficiently meet increasing seasonal orders, particularly during the peak holiday season spanning Christmas to New Year.
Leveraging Global Demand for Seasonal Sales
Founded in 2018 by two entrepreneurs, Gravity Drinks has established a reputation for crafting high-quality spirits and liqueurs. The company has built a robust customer base across essential markets, including the USA, Canada, Scandinavia, Taiwan, Japan, and New Zealand. The recent influx of funding enables the company to enhance production capabilities to fulfill significant holiday orders, including a record shipment of 35,000 units for Costco’s popular “Whisky Tour of the World” advent calendar, which has already sold out for the 2024 season.
Meeting Working Capital Needs for Growth
According to UKEF, their trade finance guarantee falls under the General Export Facility (GEF), which has provided UK exporters access to over £576 million in working capital loans in the previous financial year. This support is crucial for Gravity Drinks as it navigates international demand while expanding its product line to include distinctive offerings and bespoke white-label options, particularly in Asian markets.
Driving Local Economic Growth in Cheltenham
The recent financing not only bolsters Gravity Drinks’ expansion initiatives but also contributes to local economic growth. With these additional resources, the company has invested in new production equipment and expanded its workforce. Consequently, Gravity Drinks anticipates achieving a total order value approaching £8 million by the end of 2024, underscoring its commitment to sustainable growth.
Industry Insights on Gravity’s Rapid Growth
Hitesh Patel, Export Finance Manager for London at UKEF, commented on Gravity Drinks’ progress, stating, “Working with Jim Denoon’s team has been a pleasure as we align on the financial and insurance needs of the business. Gravity Drinks has taken time to understand local celebrations globally, and they have tailored their drink solutions effectively.” This sentiment was echoed by Jim Denoon, Director of Gravity Drinks, who emphasized the importance of having the right partners to navigate growth, citing ongoing support from UK Export Finance since the company’s inception.
International Trade Week: Opportunities on the Horizon
Gravity Drinks’ recent success announcement aligns with the celebration of International Trade Week, an initiative by the Department of Business and Trade dedicated to empowering UK businesses to explore international markets. This event combines virtual and in-person sessions, providing companies with valuable insights and tools to navigate global trade opportunities effectively.
A Bright Future for Gravity Drinks
With substantial backing from HSBC and UKEF, Gravity Drinks is poised to become a significant player in the premium drinks sector globally. As the company works diligently to broaden its market reach, innovate product offerings, and strengthen local operations, it exemplifies the remarkable achievements possible for UK-based small businesses in the international arena.
The growth of Gravity Drinks from a local Cheltenham brand to an internationally recognized premium drink producer highlights the power of strategic financing and the undeniable demand for high-quality, unique products worldwide.
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