Target Company Information

Shaken Udder is a premium milkshake manufacturer founded in 2004 by husband-and-wife duo Jodie and Andrew Howie. Headquartered in Tiptree, Essex, the company offers a range of milkshakes made from fresh milk and real ingredients, featuring popular flavors such as 'Chocolush!' and 'Strawberries and Clotted Cream'. Their products are widely available in major UK supermarkets including Sainsbury’s, Tesco, Waitrose, Morrisons, ASDA, Co-op, and Boots. In response to consumer demands, Shaken Udder has recently expanded its offerings by introducing a 750ml share bottle and a dairy-free range branded as Shaken Other.

Since its inception, Shaken Udder has experienced significant growth and now holds the title of the UK’s top premium milkshake brand according to NielsenIQ. The business has also committed to sustainability by utilizing fully recyclable PET bottles and solar energy to power its operations. With annual sales exceeding £20 million and a doubling of size in the past two years, Shaken Udder is well-positioned for continued expansion.

Industry Overview in the UK

The UK dairy industry plays a crucial role in the national economy, with milk being one of its most significant commodities. The rise of health-conscious consumers coupled with a growing demand for premium and natural products has led to an increased interest in high-quality dairy alternatives. The market for flavored milk and milk-based beverages has seen considerable growth, driven by trends in convenience and on-the-go consumption among consumers.

Moreover, the plant-based segment of the industry is witnessing remarkable growth, with consumers increasingly opting for dairy-free options. This shift has prompted traditional dairy companies to diversify their product lines and introduce plant-based alternatives, creating ample opportunities for companies like Shaken Udder that are already investing in this sector.

Additionally, the pandemic has reshaped consumer habits, pushing many people towards local and ethical brands that prioritize sustainability. This change represents a strategic advantage for brands that emphasize environmentally friendly practices, such as Shaken Udder, which has integrated sustainability into its operations.

As a result, the UK milkshake and dairy alternative market is expected to continue expanding, fueled by innovative product offerings and evolving consumer preferences. Investing in established brands like Shaken Udder during this growth phase presents valuable opportunities for stakeholders looking to tap into this upward trend.

Rationale Behind the Deal

LDC's minority investment in Shaken Udder aims to accelerate the company's growth trajectory, enabling increased product development and market reach. The capital injection will empower the management team to expand its customer base into convenience stores and enhance brand marketing efforts. Moreover, the funds will support Shaken Udder's ambitions for international expansion through distributor partnerships, thereby opening new avenues for revenue generation.

The partnership with LDC is seen as a strategic move, leveraging their expertise and industry connections to solidify Shaken Udder’s position in a competitive market. The involvement of seasoned industry professionals as board members further enhances the company's governance and strategic direction.

Investor Information

LDC is a leading mid-market private equity firm with a strong track record of backing growth-oriented businesses across various sectors. Known for its collaborative approach, LDC works closely with management teams to drive strategic initiatives and operational improvements. Their extensive experience in the food and drink sector, combined with a robust network of industry contacts, positions them as a valuable partner for Shaken Udder as it embarks on its next phase of growth.

David Bains, Partner and Head of East Midlands and East of England at LDC, alongside LDC Investment Director Mark Howden, will join the Shaken Udder board, bringing their expertise to enhance the strategic direction of the company. Additionally, the appointment of James Lambert OBE as Non-executive Chair signifies LDC's commitment to strengthening the leadership team with seasoned professionals who have a deep understanding of the food and beverage landscape.

View of Dealert

In assessing the investment made by LDC in Shaken Udder, it appears to be a sound decision that aligns well with current market trends. Shaken Udder's established reputation as a premium milkshake brand, coupled with its commitment to sustainability and innovation, positions it favorably for future growth. The significant expansion potential, particularly in the dairy-free sector, further enhances its attractiveness as an investment opportunity.

The growing demand for convenient, high-quality dairy and dairy-alternative products suggests that Shaken Udder is well-placed to capitalize on these trends. With LDC’s support and expertise, the company is likely to build on its recent successes and increase its market share significantly. The role of experienced board members will also provide strategic guidance essential for navigating the competitive landscape effectively.

Moreover, the focus on diversifying distribution channels, including greater access to convenience stores and potential international markets, positions Shaken Udder to leverage its brand equity for sustained growth. With these developments, investors can expect a solid return on investment as the company continues to evolve with consumer preferences.

In summary, LDC’s investment in Shaken Udder represents a strategically sound partnership that enhances the brand’s growth potential while aligning with significant market trends. This collaboration not only promises valuable insights and resources for Shaken Udder but also serves as a robust example of fostering innovation and sustainability in the dairy sector.

View Original Article