Growth Fund - Loans & Equity Case Study
Drinks company Euphoria Cocktails specialises in ready-made bottled cocktails.
The company is the brainchild of Victoria Novis who established the firm in 2010 when she saw a gap in the market.
Victoria, from Scarcroft, said: “With alcopops in decline and cocktails increasingly popular, I thought there was a gap in the market for superior quality pre-mixed cocktails.”
Victoria spent three months researching the product and the market, as well as looking at individuals and companies that could help her, before taking nine months to develop the product.
She said: “Once I had developed the cocktails, I put them to the test against freshly-made versions made by professional mixologists serving in award-winning cocktail bars and we were overwhelmed with positive feedback.
“Fresh cocktails are difficult and time consuming to make and also costly in terms of ingredients, equipment and staff training. Conversely, Nuba is a very simple proposition of great tasting cocktails, individually bottled, creating a fantastic opportunity for busy bars and other establishments to offer a great alternative to the more usual product offering.”
After a year in the making Victoria’s Nuba Cocktail range was launched at the Northern Restaurant and Bar Show in Manchester, in March 2011. The range consists of a ready-made, single serving size cocktail in a bottle that comes in three flavours; Cosmopolitan, Mai Tai and Mojito.
“Nuba was a big success at the trade fair, people said they looked and tasted great and I got my first batch of orders. So the next day I handed my notice in at work and began developing the business full-time.”
The entrepreneur gained a variety of customers, from golf clubs and hotels, to bars, pubs, restaurants and clubs, and even London Zoo – but Victoria wanted to get a team behind her that could support the growth of the business.
Victoria said: “I was keen to work with Finance Yorkshire because of their experience in supporting new businesses.”
After presenting her business plan and forecast the company received a £125,000 Equity Linked investment to support the growth of the business, in addition to private equity from business angels.
Now Victoria has sold more than 100,000 Nuba Cocktails and the drinks are being stocked by national pub chain, Punch Taverns, on sale in more than 200 outlets and available in-flight on all Easyjet planes.
The Investment Rationale
Finance Yorkshire Contracts Manager Darren Morris, said: “We recognised the value that private investors could bring to the company in terms of supporting Victoria in her first business venture. We felt confident investing in the company as despite being new to the sector she has generated huge sales.”
Finance Yorkshire is one of five investors in Euphoria Cocktails and Victoria also attracted the interest of Jules Hydleman, former chairman of Innocent Drinks, who is now Euphoria Cocktails’ Chairman and Non-Executive director.
Victoria added: “I am thrilled to have Finance Yorkshire, alongside the private investors, on board. Together they form my ‘dream team’ that will help me to expand the business and achieve scale for our niche product.
“The last couple of years have been a steep, fast learning curve but I am very excited about the future and working with such a great team.”
Note: this case study is from Finance Yorkshire’s previous fund. Read more about Finance Yorkshire