The funding from HSBC UK will be used as working capital to allow the business to make bulk orders of ingredients needed for large customers – including ASDA, Lidl, Morrisons, Tesco and Waitrose.
AIB also planned to use the support from the bank to develop new product lines, including an organic kids’ snack range. Products in the range will include veggie straws and ‘melty snacks’.
Khalid Parvez, chief executive at AIB Foods, said: “We’re pleased to be increasing production for our supermarket customers while growing our snack range, with more organic, healthy options for children.
“With HSBC UK’s support, we’re looking to boost our growth rate and build our presence outside of the UK, increasing our exports to Europe while maintaining our presence across our key customers in the UK.”
Founded in 2009, AIB Foods primarily supplies ingredients, such as spices, lentils and rice for supermarkets and independent stores. Since 2015, it has diversified its offering to include nuts, dried fruits, low-fat allergen-free plant-based snacks and organic snacks.
Boost to sales
AIB anticipated a £4m increase in turnover per annum as a result of this cash injection from HSBC UK.
HSBC UK head of corporate banking West Midlands Andy Oates added: “AIB Foods has been a customer since its inception 14 years ago. Over this time, it has been able to grow its catalogue of products and build its profile as an organic snack supplier. We’re delighted to support the business as it grows its presence across the UK and internationally.”
Meanwhile, baked goods manufacturer The Pudding Compartment has secured £100k of investment from the Development Bank of Wales to support factory expansion.
Baked goods manufacturer The Pudding Compartment has secured £100k of investment from the Development Bank of Ways to support factory expansion.