Plant-Based Ingredients Producer Freshcut Foods Secures New Ownership – vegconomist

Freshcut Foods, a plant-based ingredients producer based in Nottingham, UK, has secured new ownership after investment company Flywheel Partners acquired a majority stake.

Freshcut Foods aims to “turn vegetables into irresistible, exciting, and inspired ingredients”, catering to flexitarian consumers by developing plant-centred solutions. The company supplies over 40 major food service brands, recipe kit producers, and manufacturers.

The new deal sees Flywheel partner with Freshcut Foods’ management team, who are reported to have increased their stake in the business. Private equity firm Perwyn previously owned a majority stake in the ingredients supplier, but has now exited.

The news comes after Freshcut Foods recorded a £10 million spike in turnover in the year ending in July 2022, following its recovery from the pandemic. Pre-tax profits were £710,000, compared to a £1.4 million loss the previous year.

“Industry-leading innovation”

Freshcut Foods is now experiencing significant growth, believed to be driven by the rise of flexitarianism; research indicates that one in four consumers worldwide now identify as flexitarian, while half are interested in plant-based food. A study conducted by Sainsbury’s in 2019 predicted that half of Brits would be flexitarian by 2025, and flexitarians already represent the biggest target segment in plant-based retail.

“We are hugely excited to be partnering with Flywheel in the next stage of our growth journey, as we continue to provide customers with natural plant-based food solutions through industry-leading innovation,” said Freshcut Foods CEO Chris Copestake. “Flywheel Partners’ experience in the food sector, their entrepreneurial spirit, and strong cultural fit make them the perfect partner to help drive our development over the years ahead.”