The London Jam Factory is raising investment on CrowdCube. Seeking £130,000 for 30.23% equity. Founded in 2014 and generating a T/O of £60,000 last year. The premium jam maker is looking to expand its range and route to markets and expects to grow its revenue by 4x by end of 2016.
Founded and run by Pierre-Louis Phelipot who has over 20 years experience in and around the food industry, he has driven a passion for great quality products that focus on fruit and innovation without the sugar!
Our top-line summary of the investment opportunity is only our opinion and should not be taken as financial advice. Potential investors should do there own due diligence and seek professional advice from someone who understands their personal circumstances…
Premium quality products are an area of growth within the food industry as consumers become more discerning over their choices, however price is still the key focus of the major retailers and as with most food categories Jams and spreads is a competitive area, containing some big players with deep pockets which the London Jam Company will need to compete with.
Sugar is the big focus of the industry at the moment and clearly an area that many retailers are looking for solutions in, however with Jams (a fruit based product) naturally high in sugars we struggle to understand actually how low in sugar these products can be – We haven’t seen the ingredients list or product QUIDS to determine this!
We can see a clear opportunity for this range of products in the premium independent market as well as hampers and other gifting led retailers but struggle to see this getting big in the major retailers which in our view does limit the potential scale of the brand.
Pierre-Louis has over 20 years experience in the food industry so he should know the challenges of this market and the hurdles they will face. This
Food is a difficult market to succeed in and Jam’s aren’t sitting at the more trendy or exciting end of the market. With plenty of big branded suppliers already in this area breaking into the top retailers will be challenging and require a large portion of the investment. Of course their could be a decent sized business just through independent retailers and hotels without playing in the top 4 UK retailers but would this be enough to deliver the returns an investor would want?
As of 8th March the funding deadline has been extended and the amount of equity on offer has been increased to 40% and 48% of the required £130,000 investment has been raised.