James Clark and Howard Smith from Interpath were appointed joint administrators to Watkins Drinks Limited, which trades as Mighty Drinks, on 17 June in response to the firm’s financial situation.
Based in Leeds, Mighty Drinks specialises in pea protein and oat milks, with its range of products sold nationwide in supermarkets and health stores.
However, the company has faced several trading headwinds in recent years, including rising costs and reduced consumer confidence.
This impacted its ability to scale and achieve profitability, which led the directors to explore the investment options available to them.
However, it has since become clear that a solvent outcome was not possible, and they took steps to file for the appointment of administrators.
Tom Swiers, food and drink sector lead at Interpath, commented: “There has been an increasing focus on profitability within all aspects of the alt category, following the investment boom of a few years ago. It is no longer simply a case of growth as number one priority.
“The Mighty team has created a great product, with an exciting kids-milk range set to launch with retailers given the allergen free benefits of pea-protein, and a path to profitability from improved margins and increased volumes.
“Unfortunately, however, this has come at a point in the company’s cycle where it required further investment which was not forthcoming from typical investors in this space, nor was it attractive to typical special situations investors given the relatively early stage of the company’s development.”
Managing director at Interpath and joint administrator James Clark said that the firm would now work closely with stakeholders in Mighty Drinks and explore all potential available options.
“[This includes] seeking offers for the business and its assets, including the Mighty brand and related intellectual property,” added Clark.
“We would invite any parties who may be interested in acquiring the business to make contact with us as soon as possible.”
