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Durham coffee company steams ahead with second NEL investment

A Durham-based, flavoured coffee company has secured a second investment from NEL Fund Managers to assist in the next stage of the company’s development plans.

Beanies The Flavour Co manufactures a growing range of coffees, with 16 instant coffee and 30 whole bean flavours already available and more in development.

Last year the company received a £300k investment from the Finance For Business North East Growth Fund, managed by NEL, consolidating its office, manufacturing and warehousing functions into new 9,000 sq ft premises in Darlington and seen its products go onto Tesco’s shelves for the first time.

The Beanies management team has now gone back to NEL for a further £100k, which will support a range of improvements being made across various elements of the business.

The company’s manufacturing line is being upgraded, with two new production apprentices being taken on as part of the development, while two graduate recruits have also recently joined the firm.

The Beanies website and mail order functions are being improved, and further products are being developed and brought on stream, including a new range of Christmas gifts that will be available for the forthcoming festive season.

Discussions are also continuing with a number of well-known major multiple retailers about bringing Beanies’ products, which are already available in Sainsbury’s as well as in Tesco, into their respective stores.

Founded by director Mark Porteous in 2009, Beanies sells products through its www.beaniesflavourco.co.uk website, as well as through independent High Street retailers and speciality food outlets.

As well as growing domestic sales, the firm’s products are increasingly in demand in a range of overseas markets, including South Africa, the Middle East and mainland Europe, and trading partners are being sought in a number of other locations.

John Evans, Beanies managing director, said: “Bringing our whole operation under one roof was a big step for us, and we had to make the move seamlessly, so that our production and service levels didn’t drop in any way, but having now achieved that, we’re in a great place to press forward with further developments.

“Getting into Tesco was a major landmark for us, and with the rapid evolution in the retail sector towards a more convenience store-based focus, there are huge opportunities for us to get our products into even more high profile High Street locations.

“We’re moving into the peak season for online sales, when we can be processing up to 200 orders a day, and we’re expecting our first Christmas range to add to this demand, so enhancing our website and the capacity we have to get orders out to customers is a crucial task.

“Having the working capital available to make all these improvements is a absolute necessity, and NEL’s involvement has become a key part of our business plan. The team understands what we’re looking to do and has been extremely supportive in helping us work towards our goals.”

Chris Parker, investment executive at NEL Fund Managers, added: “Beanies is already a real success story that has the potential to do a great deal more, and their progressive use of investment capital sets an excellent example for other North East firms that plan to go through the gears of growth.”

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