Family-run frozen yogurt business eyes expansion
AFAMILY-RUN frozen yogurt manufacturer is looking to expand after it secured a £250,000 investment.
Anglesey-based Plas Farm will use its new loan from the Development Bank of Wales to purchase new equipment and machinery along with funding a sales and marketing campaign.
Plas Farm was first established in 1987 by David Williams as he looked to diversify his dairy business. 2007 saw production moving to an industrial unit in Gaerwen, Anglesey. In 2014, the company was awarded the Queens Award for Enterprise, recognising an outstanding achievement in international trade.
Employing 28 people with additional seasonal staff as needed, Plas Farm is now the largest private label frozen yogurt manufacturer in the UK with 40% of products exported globally. The product range includes frozen yogurt, ice cream, chilled salads and health foods.
Turnover is predicted to double to more than £4m in the next five years with organic and non-organic frozen yogurts accounting for more than 50% of sales.
Director Rhian Williams says that frozen yogurt is becoming increasingly mainstream as consumers look for healthier alternatives to ice cream.
She said: “The market for frozen yogurt across Europe has grown steadily over the last five years as consumers demand healthier options.
“Agility and speed of product development are critical factors of our business strategy as we look to capitalise on increased demand for healthier desserts, specifically frozen yogurt, vegan and reduced sugar frozen desserts.
“Working capital is essential to maintaining and building market share and, like all businesses, easy access to finance is therefore needed to fund future growth. We’ve now got the capital and the confidence to take the business to the next stage of development whilst maintaining our roots firmly here in Anglesey.”
Rhodri Evans, north Wales regional manager for the Development Bank of Wales, said: “Plas Farm is an established food manufacturing company that has carved out a niche for itself in frozen yogurt production that makes great use of Welsh milk.
“An accomplished export business with a strong trading history, Plas Farm benefits from an experienced management team with real ambitions to grow the company. They are an ideal fit for the finance available from the new development bank.
“With our support, the team now has the working capital needed to develop new products and target mass market opportunities while maintaining their excellent reputation and customer retention levels. It is a pleasure to be backing such a brilliant success story in north Wales.”
The Wales Business Fund is part funded by the European Regional Development Fund through the Welsh Government. It was created specifically to support businesses with fewer than 250 employees based in Wales and those willing to move here. Business loans and equity packages from £50,000 up to £2m are available.