Watkins Drinks Limited, which trades as Mighty Drinks, appointed James Clark and Howard Smith from Interpath as joint administrators on 17 June after facing multiple trading headwinds in recent years including rising costs and reduced consumer confidence.
The Leeds-based pea protein and oat milk manufacturer was stocked in a range of supermarkets and health stores across the UK, but failed to reach the scale required to achieve profitability.
Looking forward, Interpath is exploring all potential available options, including seeking offers for the business and its assets, including the Mighty brand and related intellectual property.
Responding to the news, Tim Smith, now the CCO at Rude Health – Oddlygood, said that the news was a reminder of the “real challenges” that still face the plant-based drinks space. Smith was the chief executive at Rude Health prior to its acquisition by Oddlygood in October 2024.
“Rude Health and Oddlygood both know first-hand the passion, dedication and resilience it takes to build a plant-based drinks brand, so our thoughts are with everyone affected by Mighty’s situation,” Smith commented.
“Mighty going into administration is a reminder that our category still faces real challenges, but we also see huge potential for growth. Now more than ever, it’s important for brands, retailers and consumers to come together to champion innovation, transparency and choice. By joining forces, we can help the plant-based drinks sector thrive and reach even more people.”
Mark Field, director and founder at the food specialist Prof Consulting Group, echoed Smith’s comments.
“In my opinion the sad news this week re Mighty Drinks reflects the changing dynamics and increasing competitiveness within the category, as consumers have more choice, focus on value and the investment criteria becomes more defined influenced by past exposure in the category,” Field told Food Manufacture.
“Mighty Drinks seem to have done a number of things well, retailer listings, the innovation pipeline, branding and reputation for quality, that will hopefully be attractive to an investor that can bring in the economies of scale or take a longer term view on return to see the brand win under new ownership.”
Julian Wild, food industry analyst and director of Wilkin Chapman Rollits, added that the alt-milk market has become crowded due to the entry of multinationals.
“Mighty Drinks is a sad story because there is undoubtedly a market for alternatives to milk and the company has worked hard at developing its range and raising funds from a variety of sources,” Wild said.
“But the reality is that the alt-milk market has become quite crowded and even multinationals like Nestle have found it unsustainable to keep going.
“Inevitably, when times are tough, consumers buy on price and it is difficult for companies like Mighty Drinks to compete. The company has made heavy losses in recent years and simply ran out of cash and investors willing to put more money in.
“It’s a pity but, with rising costs, this won’t be the last business casualty in the sector.”
