A young entrepreneur has launched a crowdfunding bid to expand his business selling soups and sauces made with produce from his home island of North Uist.
Douglas Stewart, founder and managing director of The Hebridean Food Company, hopes to raise £60,000 to double production capacity after a securing contracts to supply Selfridges, supermarket chain Aldi and other outlets.
By yesterday he had already achieved 20% of his target, just four days after launching his pitch on the Crowdcube crowdfunding platform.
Mr Stewart, 25, from Grimsay, said he turned to crowdfunding after becoming fed up by rejections from banks.
He said: “We took this route out of sheer frustration with traditional funding mechanisms. We were rejected by the banks, but we thought we had a good idea, so we turned to a public platform to try to get the funding.
“We are delighted with the response so far. There has been fantastic interest and we have reached nearly £12,000 in just four days.”
The son of a lobster fisherman, Mr Stewart launched the Hebridean Food Co, selling shellfish from North Uist, two years ago after graduating with a degree in rural business management from agricultural college in Edinburgh.
Working with well-known chef Colin Bussey he started his meat and seafood soup and sauce range seven months ago. Using produce from his home island, including, lobsters caught by his father, the soups and sauces are produced at a unit in Hamilton, South Lanarkshire, which currently employs two people.
The company’s clam chowder has been selling at Aldi since January and two more of its products will be available in the supermarket chain’s chillers from September. They are also sold in Selfridges, through the Southbank Fresh Fish outlet.
This week the Hebridean Food Co secured a deal to supply the popular House of Bruar, in Perthshire, and they are also working with the Wholefoods chain. Around 40% of the company’s current sales are through its online store.
The company’s Hamilton facility currently has the capacity to produce 900,000 tubs of 400g soups annually, giving a turnover of £1.62million. Through the crowdfunding investment Mr Stewart hopes to be able to increase production and grow turnover to £3m.
Mr Stewart added: “We will use the the funding mainly for new equipment and also some of it for marketing.
“We employ two people at Hamilton at the moment and with extra capacity that would increase to four or five.
“We chose the South Lanarkshire for the manufacturing unit for logistics purposes when we were setting out, but ultimately I would like to be able to make the produce in the Hebrides, where the ingredients come from.”
Stakes available in the company through Crowdcube range from £10 to £10,000. Those investing £250 or more will receive rewards ranging from gift vouchers and free products at the lower end to shares and tasting events for investments of £5,000 and over. As well as shares, anyone taking a maximum £10,000 stake will be given a personal tour of the Hebrides, with accommodation at a four-star hotel.
The company’s crowdfunding pitch closes on 20 August.
