Mighty Drinks, a UK-based producer of plant-based oat and pea milk, has entered administration following financial difficulties linked to rising costs and declining consumer confidence. The company, which was one of the UK’s fastest-growing dairy alternatives brands, appointed administrators from Interpath Advisory on June 17.
Struggles with investment & financial sustainability
As initially reported by Just Food, the company’s parent organization, Watkins Drinks Limited, struggled to secure necessary investment, which ultimately led to its decision to appoint James Clark and Howard Smith from Interpath as joint administrators. The firm’s product range, sold in supermarkets and health stores across the UK, included pea-protein and oat-based milks.
Tom Swiers, food and drink sector lead at Interpath, explained that while Mighty Drinks had developed a strong product portfolio, including a forthcoming allergen-free kids’ milk range, the company required additional investment to continue its growth.
“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,” he explained.
Challenges facing the industry
Despite its early success, Mighty Drinks faced challenges typical of many companies within the plant-based food sector. These challenges, including pressure on profitability and scaling, have hindered the company’s growth potential.
The company noted that while the plant-based sector previously saw significant investment, there has been a shift toward profitability in recent years, making it increasingly difficult for businesses to continue expanding without clear paths to financial sustainability.
James Clark, one of the joint administrators, commented that the next steps would involve exploring available options, including potential offers for the business and its assets, such as the Mighty brand and related intellectual property. He stated, “We would invite any parties who may be interested in acquiring the business to make contact with us as soon as possible.”
