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Kirsty’s, a UK manufacturer specialising in allergen-free ready-meals and desserts, has been backed to the tune of £2m ($2.6m) by a fund operating on behalf of the government-owned British Business Bank.
The company, based in Harrogate, in northern England, said it will use the money to launch new food-to-go ranges and develop other new products.
The investment has come from the Northern Powerhouse Investment Fund II operated by Mercia Equity Finance on behalf of the British Business Bank, which is backed by the UK government but operates independently. It has a remit to work closely with the finance sector and entrepreneurs to help small- and medium-sized businesses (SMEs) grow.
The Northern Powerhouse Investment Fund II specifically targets companies in the north of the country.
Kirsty’s was established by Kirsty Henshaw in 2009 after she discovered her son Jacob had multiple food allergies, including to nuts, as well as dairy intolerance. She felt such conditions were not being catered for sufficiently by the food industry at the time.
Its popularity grew after Henshaw appeared on business pitch TV show Dragons’ Den in 2010 and received backing from ‘dragons’ Peter Jones and Duncan Bannatyne. Three years later, after launching her meals into major supermarket chains across the country, she bought her shares back.
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By GlobalDataIn 2020, Kirsty’s opened a factory in North Yorkshire, bringing all its manufacturing operations in-house.
As well as launching products on the back of the newly-announced funding, the business also expects to add 15 jobs to its 55-strong team in the next six months at the Harrogate factory. As part of the deal, Ian Kent, the former commercial director of Stateside Foods, has been appointed as chair.
Henshaw said: “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 Equity Finance parent 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.”