Somerset-based organic dairy company Yeo Valley has bought The Collective (Epicurean Dairy (Uk) Ltd) for an undisclosed sum.
Originally created in New Zealand by Angus Allan and Ofer Shenhav, The Collective launched in the UK in 2011 after the duo teamed up with the late Mike Hodgson, former MD of Gü, and the pudding company’s sales director, Amelia Harvey, who has since left the business.
The company makes premium yoghurt products including its portable kid pouches ‘Suckies’ and a range of other yoghurt pots for adults, including kefir, gourmet pots which feature a layer of compote, and Greek-style yoghurts. It also includes the more recently addition of its ‘healthy’ snacking pouches, unveiled last summer – a more adult version of its Suckies.
The range comprises ‘Immunity’ with cheery and acai, ‘Gut feel’ with vanilla, and ‘Restore’ with apple, kiwi and spirulina.
These will now join the Yeo Valley portfolio, which includes a range of organic dairy produce including yogurt, milk, cheese, cream, ice cream, kefir and butter, as well as an assortment of soups.
Upon reviewing the Company House records for Epicurean Dairy (Uk) Ltd, Food Manufacture can reveal that The Collective has changed its new address details from Wood Lane in London to Blagdon in Somerset where Yeo Valley in headquartered.
The records also show the appointment of Yeo Valley’s Dr Fay Cooke, chief impact and financial officer, and Robert Sexton, chief executive officer as directors.
The Collective’s last accounts, made up to 31 March 2024, showed a 2.8% increase in turnover from £25,848,260 to £26,562,823 after it increased prices with its main customers in reaction to inflationary pressures on its supply chain.
The Statement of Financial Position showed net liabilities of £2,202,493 – a decrease of £375,037 over the previous year. The change was driven by a profit-making year.
At year end the company is in a net current liability position of £2,306,683 (2023 - £2,674,887) a net liability position of £2,202,493 (2023 - £2,577,530) and in the year to 31 March 2024 made a post-tax profit of £375,037 (2023 – post-tax loss of £1,599,260).
Following positive trading for 8 months to November 2024, the company had a cash overdraft balance of £465,679 and an unutilised overdraft facility of £780,000 agreed by its bankers. The directors noted their belief that the company was in a strong financial position to withstand any future downturn, having invested in brand building, NOD, executing CPI, and reduced COGS to maintain margins given the ongoing inflation of input costs, but recognised that it had net liability positions at 31 March 2024.
The independent auditor concludes that the director’s use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Rob Sexton, CEO at Yeo Valley Production Limited said: “We are delighted to welcome The Collective to the Yeo Valley Production family. The Collective brand is renowned for never compromising on the quality and market-leading taste of its products.
“Add this to the values of the business, encapsulated in its B-Corp accreditation, and we see this as a perfect fit with Yeo Valley Production. This agreement will ensure The Collective brand continues to deliver taste-led innovation and great value. Together, we have ambitious plans to drive growth of delicious British dairy. It’s an exciting new chapter for us all.”
Offering analysis, Julian Wild, corporate finance director for Rollits LLP, told Food Manufacture: “The Collective has built up a following in the ‘gourmet yoghurt’ market whereas Yeo Valley has lost market share in recent years."
“This looks like a move to reassert Yeo Valley in the premium end of the yoghurt market and to halt its decline into the mainstream. It makes a lot of sense for the buyer but may disappoint the fans of The Collective who will see this as another niche brand selling out to a bigger competitor.”
Sarah Smart, CEO at The Collective UK added that the business’s long-standing partner has been integral to its growth and is the “perfect home” for The Collective as it grows.
“I would like to thank all who have been on the journey with us to date including our loyal consumers, suppliers, customers and especially our incredible team who have passionately been the dairy shaker uppers,” she said.
“I look forward to The Collective building on this success further and continuing to deliver more great tasting innovative dairy to British fridges.”