UK spirits distiller and honey producer The British Honey Co. has announced a review of its strategic and financing options, which could include the sale of the company.
The London-listed firm, which previously warned its 2022 financial results would fall below expectations, is yet to receive any expressions of interest. Despite this, the company added it maintained “a positive outlook for the business”, describing its current capital shortage as a “pinch-point”.
“The board believes that it is in the best interests of all the company’s stakeholders to explore all possible strategic and financing options at this time,” a statement from The British Honey Co. said. “In addition to further external investment in the business, these options may include a potential sale of the company as a whole or its business and assets.”
As of 10 October 2022, the firm said it had GBP0.18m (US$0.20m) of cash remaining, despite having undertaken “strict cost and investment discipline” over the last twelve months, in which labour costs have been reduced by GBP1.2m. Shares in the company are currently suspended.
Additional funding sources for the business will be sought between now and the end of November to support its short-term working capital requirements, which include paying for production runs upfront, and making duty payments.
The British Honey Co. was founded in 2014, initially focusing solely on honey production before expanding into honey-infused spirits under its Keepr’s brand. The company also has a “white label” business supplying supermarkets with unbranded honey and spirits products.
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In 2020, the company extended its spirits operations when it rescued The London Distillery Co from administration. Last year, it added Union Distillers to its portfolio, purchasing the Two Birds multi-category spirits brand, as well as Union’s third-party distilling business.
The GBP8m deal expanded British Honey’s capacity to around 3m bottles of spirits a year.