David Teather today reported in the Guardian Abel & Cole’s sale of a 25% stake in their ethical, organic online food delivery service to private equity firm, Phoenix for £7 million. The investment is certainly attractive. Organic food is one of the most profitable and fast growing markets in the UK.
Dionne Rooney, Partner from The Local Food Company, a very similar company to Abel & Cole based in the Dartmoor National Park in South Devon feels positive about the investment and growth prospects for Abel & Cole.
“I personally believe it is a positive step that private equity firms and large companies are recognising the value of high quality food sales businesses. This investment shows that the contribution that businesses that have grown considerably from nothing is valued. Businesses like our own, Riverford and Abel & Cole are growing at such a rate that investment and expertise is often required and can help move the business forward. Ethically led businesses are certainly no longer on the edge of business success and that is demonstrated by this investment.”
The Local Food Company work mainly with Devonshire and West Country suppliers delivering high quality food, without the Knightsbridge price tag throughout the South West and to discerning food lovers across Britain. Still in their infancy, their website has picked up top awards, the company are finalists for this year’s Green Business Awards to be announced next week in London and the company has already doubled their sales from their previous year’s trading in the first 6 months of this financial year. The company have even been featured on The Travel Channel on Travel Green and boast having Keith Richardson from the Richardson Hotel chain as their business mentor.
Dionne Rooney said: “There is always a dilemma for businesses such as ours when looking for an investor to help cope with growth and our own fast success. There is a history of other ethically businesses who have lost some of their ethical principles and some of their unique and innovative free approach. I hope this will not be the case for Abel & Cole. The heart of their business – doing something differently – is what separates both us and them from larger companies such as Waitrose or Harrods for example. To lose that would invalidate a lot of the attraction of both of our businesses and would be a great pity. The last thing we need is another supermarket!”
Editor Notes:
The Local Food Company has already won and been short listed for a host of awards including Internet Retailer of the Year, 2006 from Taste of the West, Best Local Food Retailer in the South West from the Rural Retailer Awards (short list 2007), Best National Work Placement for their Shell Work Placement (2006), Green Business of the Year, finalist 2007. Devon Environmental Business Award Finalist 2007.
The company has gone from strength to strength and recently moved to larger premises at South Brent on the edge of Dartmoor National Park.
Modbury, where the partners live, continues to inspire a wave of successful, green entrepreneurs following the Plastic Bag Free Campaign earlier this year, which the partners were involved with.
For information on The Local Food Company please contact: Dionne Rooney, 01548 831183 or 07984 442747 or dionne@thelocalfoodcompany.co.uk .