UK bakery manufacturer Finsbury Food Group has acquired a 70% stake in direct-to-consumer business Lola’s Cupcakes for an undisclosed sum.
Finsbury Food Group, which supplies bakery products to retailers and foodservice customers, said the acquisition was part of a strategy to make “targeted investments in innovative, high-growth segments” of the market.
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Lola’s Cupcakes sells cakes and brownies through its own stores and via the DTC channel. E-commerce accounts for around half of the company’s sales, with the business using 45 kiosks and collection lockers.
In 2024, Lola’s Cupcakes generated a turnover of £26.2m ($35.5m), up from £24.9m a year earlier. The company’s profit after tax was £1.6m compared to just under £610,000 in 2023. The business employs around 400 people, operating from a facility in north London.
John Duffy, the CEO of Finsbury Food Group said described the deal as “an exciting milestone” for the company.
He added: “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.
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By GlobalData“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.”
Lola’s Cupcakes will continue to be led by managing director Asher Budwig, who said: “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.”
Finsbury was sold to Isle of Man-based asset manager DBAY Advisors two years ago eight months after the baker had snapped up UK cake maker Lees Foods.
