Administrators secure sale of alternative milk brand

Administrators have secured a buyer for a dairy-free alternative milk brand after it fell into administration in June. Leeds-based Watkins Drinks Ltd, trading as Mighty Drinks, produced a wide range of oak milks, pea protein and oat milk powders.

Administrators from Interpath Advisory have secured a sale of the Mighty Drinks IP, along with some stock, to The Mighty Kitchen, an unrelated business supplying plant-based protein products to the UK hospitality sector.

Mighty Drinks’ products were sold online via its website, as well as being stocked at supermarkets and health stores nationwide. However, like many operators in the plant-based food sector, the company had faced mounting headwinds in recent years.

The popularity of plant-based alternatives was affected by changing consumer tastes and the cost-of-living crisis. Mighty Drinks had also been hit with rising costs, which impacted its ability to scale and achieve profitability.

Faced with these challenges, directors explored investment options for the company. However, after it became clear a solvent solution was not possible, James Clark and Howard Smith of Interpath Advisory were appointed as joint administrators on June 17.

Following their appointment, the joint administrators mothballed the business, retaining a small number of staff to assist in the realisation of its assets. After undertaking a marketing process, the joint administrators secured the sale to The Mighty Kitchen.

Founded in 2019, The Mighty Kitchen has UK operations in Stoke-on-Trent, as well as internationally in Cyprus, Greece and the UAE.

James Clark, managing director at Interpath and joint administrator of Watkins Drinks Ltd, said: "We're pleased to have secured a sale of the Mighty Drinks brand to The Mighty Kitchen, ensuring the continuation of a well-regarded name in the plant-based sector. The transaction provides a platform for the brand's future and the opportunity for the purchaser to exploit the brand overseas.”

The joint administrators will now focus on selling Mighty Drinks’ remaining assets and winding up the administration process. The three remaining staff members have been retained for a short period to assist in the transfer of the brand to The Mighty Kitchen.

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