The family-owned manufacturer said it would use the funding to reinvest in new equipment and systems as it moved to improve and automate its processes.
Money would also be spent on product development activity, enabling expansion into other food categories and safeguarding its 198-strong workforce.
Managing director Melanie Bowman said the investment was a necessity, after realising the business’s existing funding structure was incompatible with the high level of growth it had experienced in the past four years.
Investment for growth and change
“We were keen to find a long-term strategic banking partner that could provide funding to futureproof the business and that could grow and change as we did, and HSBC UK felt like the perfect fit,” said Bowman.
“Our relationship director, Sian Williams really took the time to get to know our business and our complex finance requirements, which will help us remain competitive for our customers.”
Reportedly one of the first manufacturers in the UK to produce gluten-free fried party food, Abergavenny Fine Foods has grown sales by 80% since 2016 and aims to move into the vegan market.
As well as supplying branded products to the main UK supermarkets, it also produces its own private label products branded as Rodeo Joe’s and Glorious Foods.
HSBC head of corporate banking, wales Warren Lewis added: “Abergavenny Fine Foods has ambitious plans to grow to a £40m business in the next two to three years, which its previous funding structure wouldn’t have allowed.
‘Supporting their journey’
“Our new facility is flexible and gives the team support and freedom while they take the next steps in their exciting journey. We look forward to continuing this new relationship for many years to come.”
Food and drink manufacturers from across the UK have reported investment and funding into new projects to support the growth of their businesses over the past month.
Chilled food supplier Winterbotham Darby is to conclude a multi-million pound refit of its Bicester site this month, transforming it into a dedicated plant-based manufacturing facility. This week also saw a food manufacturing and distribution campus is set to open in Derby as part of a £300M investment that will create 4,500 jobs.
Meanwhile, Finsbury Food Group foodservice arm Kara has invested more than £1m to boost capacity at its Manchester factory by more than 30% and particularly drive up its output of doughballs.