A SCOTTISH snack firm is expanding into London with a target of trebling profits in the next two years.
Healthy Nibbles is a healthy snack vending machine business set up by former branding consultant Sara Roberts in 2014. It currently has five machines in place of business in Scotland, but plans to expand that to 600 across the UK.
The company – which is based at the Midlothian Innovation Centre – is launching its first cashless machine in London, at advertising agency Bogle Bartle Hegarty’s offices in Soho, as it aims to more than treble profits from £40,000 to £150,000 in the next two years.
“We're aimed at the mid to luxury end of the market,” said Ms Roberts. “And London is a great place to begin our expansion as it’s a more developed market when it comes to healthy snacks.”
Ms Roberts self-financed the business’s launch when she returned from an eight-year stint in Kenya and became frustrated with the lack of healthy snack foods available to consumers on-the-go. She then took a £20,000 low-interest loan from Start Up Loans, the Government-backed scheme for new and early-stage businesses, to provide a second injection of capital to expand the company.
Tim Sawyer, chief executive of Start Up Loans Company, said: “Healthy Nibbles came to us as an already successful business, but needed extra capital to invest in assets to help it adapt to the ever-changing needs of consumers and fully embrace the movement towards digital payments.”
Ahead of the launch in London Ms Roberts revealed that further funding was almost in place for the expansion. “We’re in talks with angel funders and we're nearly there. The current set up has allowed us to show how scaleable the business is, how we can grow volume. We had to prove the concept worked so we’ve spent 18 months, growing little by little.”
The vending machines use SMARTvending technology that allows cash-free transactions and are located in offices across Scotland, including the BBC headquarters in Glasgow.
The business also operates a healthy snack box delivery service, and is introducing a new snack box filled with child-friendly treats which are available to order online.
Ms Roberts's next step is to develop her own range of products to stock in Healthy Nibbles vending machines, and she's recruited the help of nutritionist, Amanda Hamilton, whose profile from presenting stints on BBC and ITV could prove to be a real boon for the company.
“Amanda’s endorsement shows that we are putting health and wellbeing at the forefront of the business,” said Ms Roberts.
The next round of funding will also see Healthy Nibbles develop extend a partnership with Fulfill Vending, the vending arm of Compass Group which services and refurbishes its machines. Ms Roberts said Compass was critical to the company's success.
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