24/02/2014

NVM Private Equity invests £3.5 million in Its All Good premium snacks business

NVM Private Equity (NVM) has invested £3.5 million of development capital in Gateshead based Its All Good(IAG), an innovative high-quality snack manufacturer specialising in premium tortilla chips. The new funding will enable the management team to further enhance its manufacturing capability and product development to become a first choice supplier for tortillas to the UK Grocery industry.

Calum Ryder (IAG Managing Director) has 25 years' of entrepreneurial experience in the UK Snacks market. He was a founding Director, and latterly Managing Director, of North East based pretzel manufacturer Union Snack – a successful start-up backed by NVM in 1996. Under Calum’s directorship the business grew considerably and was sold to Intersnack in 2007, generating impressive returns for NVM. Subsequent to the sale Calum headed-up Intersnack UK. He joined forces with Michael Weatherhead (IAG Financial Director) and Lynn Saul (IAG Development Director) to establish IAG in the North East of England. In this early stage of the business the team received funding from a syndicate of investors, including FW Capital which provided £500,000 investment.  

The management team have invested heavily in high quality production lines that are at the forefront of food technology. This has enabled IAG to differentiate its products by using authentic quality ingredients, niche product formats and novel shape options. In 2012 IAG took these products to market, gaining a significant foothold in the Own Label tortilla chip segment of the Snacks market. The team have also developed the new Pitta Chip concept, currently gaining momentum as an M&S branded product. IAG's newly created premium tortilla chip brand, Manomasa, has hit over 350 high-end independent retailers just nine months after launch.

In 2012, the UK Bagged Snacks market hit £2.7bn and is forecast to grow over the next five years. The market is strong as a result of a growing trend of people staying in and sharing snacks with others. IAG is focused on a unique, and relatively under-developed, sub-sector of the market targeted at a less price sensitive and more quality focused snack consumer.

Calum Ryder, Managing Director of Its All Good,comments:

"Its All Good was born out of a desire to create products that are not only authentic and tasty but use only the finest ingredients, and include absolutely nothing artificial. Our strategy is to dominate the quality end of the own label market and to build our Manomasa brand. The new funding will help IAG to become the 'go to' manufacturer for premium tortillas and other snacks. I have personally known and worked with NVM for many years, so we both trust each other's judgement. With committed investors behind us, and a strong management team on the front line, I am excited about the future of IAG.”

Mauro Biagioni, Director of NVM Private Equity, comments:

“IAG is at the forefront of new product development in its sector. The management team are utilising their extensive experience of the snack industry to create fresh, innovative and trend-setting products. The business operates in a growing and robust market, and has begun to secure new business with major grocery multiples. We are delighted to be given the opportunity to back an experienced and highly capable management team, with a Managing Director we have supported in the past. We are very impressed with what they have achieved so far."

Joanne Pratt, FW Capital’s Fund Manager in the North East, comments: 

 “Calum and the team have made excellent progress since setting up IAG in 2011.  FW Capital’s investment provided the business with the backing it needed to grow and develop the high quality, innovative new products they’ve become known for.  It also enabled them to secure a number of listings with major retailers and to develop their brand.  FW Capital is keen to invest in more businesses like IAG and I’m delighted to see it moving so quickly to the next stage of its development with NVM’s support.”

North East Growth Plus Fund