The Flintshire, Wales-based baker said the loan would be used to increase the capacity of its 929m2 manufacturing unit on Manor Industrial Estate in Flint.
This would include the creation of new areas for office and storage space, plus making the production floor space larger to accommodate the installation of a new high-performance automated production line.
‘Transforming the business’
Director Steve West said: “We first had support from the Development Bank in June 2020 with the help of a loan from the COVID-19 Wales Business Loan Scheme. With the pandemic now behind us, our focus is now on transforming the business with the latest digital technology and additional manufacturing capacity to meet the growing demand for our products.
“We have developed our business strategy to drive growth and we’re confident that new technology will help us to improve operational efficiency. The support of the Development Bank as our funding partner means that we have the working capital to invest in our facilities.”
Investment into The Pudding Compartment was part of the £500m Wales Flexible Investment Fund, backed by the Welsh government. Welsh businesses are able to apply for loans, mezzanine finance and equity investments of up to £10m with terms up to 15 years.
Navigating the pandemic
Andrea Richardson, portfolio executive with the Development Bank added: “We’ve worked with Steve since June 2020, helping them to navigate and survive the pandemic.
“Steve was short-listed for Entrepreneur of the Year at the Wales Food and Drink Awards in May 2023, so it is particularly pleasing to now be supporting them with the investment needed to adopt new technology and create the space to scale-up and grow the business for the long-term.”
Meanwhile, Drop Bear Beer Co has started a fundraising campaign to secure £700,000 in a Convertible Loan Note round.