Snacks maker sold to ethnic foods producer
FAMILY FIRM COFRESH WAS FOUNDED IN CITY IN 1974
SNACK food brand Cofresh has been sold to ethnic foods group Vibrant Foods.
The family-owned Indian snack business – famous for its Bombay and balti mixes – was sold for an undisclosed sum.
Cofresh was launched in Leicester in 1974. Managing director Priyesh Patel is the second generation of his family to run it.
The Patels are taking a minority stake in the new parent company.
Priyesh said: “Becoming part of Vibrant Foods is opening up an exciting new chapter in our history.
“There are tremendous growth opportunities for our sector, as popularity for both ethnic and healthy snacking products continues to grow.
“Our products are well-established in both markets, thanks to the tireless work of our employees and founders, whom I’d like to thank for their support and commitment to excellent customer experience, alongside our global suppliers and customers in the UK and abroad.
“Being part of a dynamic food group will allow us to accelerate our growth trajectory, maintaining and building our market-leading product offering and helping us penetrate new markets and distribution channels.”
Cofresh, which is based in Menzies Road, off Abbey Lane, Leicester, turned over £44.4 million last calendar year compared with £34.5 million the year before, with pre-tax profits up more than £2 million to almost £5.7 million.
The business, which has invested £20 million in a factory in Nuneaton, plans to reach a turnover of £100 million in the next three to four years.
Cofresh has expanded production of its healthier snack ranges in recent years, including its Eat Real brand, on the back of years of success for its established snacks such as Bombay and balti mixes, chilli and lemon grills and poppadum curls.
Its products are sold in supermarkets and shops around the UK.
Vibrant has been investing to help it become one of the leading producers and distributors of South Asian foods in the UK and Europe.
It was launched this year by private equity player Exponent to consolidate brands in the Asian and free-from markets.
It already includes Asian food suppliers TRS Foods and East End Foods. Its businesses had combined revenues of £113 million in 2019.
It hopes synergies between Cofresh and other businesses in the Vibrant Foods stable will help the Leicester business focus on improving and expanding its offering.
Vibrant Foods chairman Rohit Samani said: “We are very pleased to welcome Cofresh Snack Foods to Vibrant Foods.
“Its broad range of authentic and high-quality snacks complements our existing product offering of South Asian staples, and further cements our position as one of the leading South Asian foods producer in Europe.
“The Eat Real brand provides us with a bridgehead into a customer base of health-conscious mainstream consumers, for whom our broad range of pulses is an ideal source of plant-based protein.”
Simon Davidson, partner at Exponent, said: “The underlying fundamentals for the broader freefrom category are very positive, and snacks are the largest contributor to this sector.
“Bagged snacks, in particular, have been growing strongly, and as such Eat Real – the number one player – is positioning us in an exciting segment of the market.
Fortus advised Cofresh on the sale.
Its team was led by Sanjay Khullar from the Leicester office who has worked with Cofresh for over 20 years.
Shakespeare Martineau advised the Patel family on legal and corporate aspects of the deal.
Sanjay said: “This has been a large and complex transaction, made even harder by Covid lockdown.
“It’s a great deal for the Patel family and Vibrant Foods are getting a fantastic business to help build their new brand.”