UK bakery manufacturer Finsbury Food Group has acquired a majority stake in premium cake business Lola’s Cupcakes.
Lola’s combines an e-commerce platform, which accounts for around half of sales, with a network of 45 kiosks and collection lockers in high-footfall locations including major London transport hubs.
The cake business generates annual revenues of £25 million and employs around 400 people, operating from its Park Royal Facility in London. It will continue to be led by managing director Asher Budwig, while benefitting from Finsbury’s manufacturing expertise, scale and commercial reach.
Finsbury Food Group supplies a range of bread, cake and morning goods products to multiple retailers, foodservice and export customers across the UK and Europe. The acquisition is part of its long-term growth strategy, with Finsbury stating that the move marked its entry into the direct-to-consumer market.
By adding direct to consumer capability to its portfolio, Finsbury said it would be “broadening its routes to market, strengthening its position in the UK celebration cake and cupcake sector”.
John Duffy, chief executive of Finsbury Food Group, commented: “Today marks an exciting milestone in the trajectory of Finsbury Food Group as we welcome Lola’s into the family. It represents another step forward in Finsbury’s acquisition journey as a buy-and-build business, allowing us to enter the direct-to-consumer market for the first time.
“Lola’s is an entrepreneurial and much-loved UK brand with a strong digital presence, and together, we see significant potential for growth and innovation across both Finsbury and Lola’s.”
Asher Budwig, managing director of Lola’s, stated: “I’m thrilled to be working with the Finsbury team on the next chapter of Lola’s story. I’ve had the chance to get to know how the Group operates, and I’ve witnessed its strength, breadth and capabilities first-hand.
“With Finsbury’s expertise in manufacturing, and the broader support of the Group, I’m confident we can take Lola’s to exciting new heights by building on what we’ve already achieved and exploring new opportunities together.”
