Backing Britain’s Best Brands

A private equity partner can help management teams in the consumer sector to achieve the focus they need, alongside providing financial support to pursue an ambitious growth strategy at pace. For more than four decades LDC has been helping brands across travel and leisure, food and drink, and consumer goods to grow. We’ve invested in 19 consumer businesses over the last decade, and the average enterprise value growth for our exited investments in the sector is 215%.

While there can be no denying the past few years have been challenging for the consumer sector, there are encouraging signs of macro-economic recovery and improved consumer confidence, and although the cost-of-living crisis and rising inflation brought uncertainty, there is strong evidence that successful brands can continue to grow, particularly with the support of a private equity partnership.

For many, innovation will be the key to building customer loyalty and driving growth. From supporting international expansion plans and hiring strategies, to investing in digital transformation and ESG, to advising on pricing and procurement – a partnership with LDC can help to identify opportunities for growth to deliver results.

With deep experience across our ten regional offices, LDC’s investors understand how to provide the consistent support consumer businesses need to create and maintain growth through economic cycles. We’ve supported founders, entrepreneurs and management teams in the sector to develop trusted brands with a focus on quality and customer service.

LDC has made successful investments in brilliant brands and growing businesses in three key sub sectors: food & drink, travel & leisure, and niche consumer.

A key part of the consumer landscape is the food & drink sub sector – defined by its maturity, yet with dynamic consumer expectations. In this competitive area, right across the UK, LDC has successfully helped management teams leading a range of businesses to grow, by building brand trust with quality products. This includes supporting the iconic  premium mixers brand Fever-Tree to double enterprise value and prepare for an IPO,  artisan cakemaker Cakesmiths to increase revenue by 164% and EBITDA by 260%, and  Shaken Udder, the UK’s number one premium milkshake brand, to outgrow the market by 23.5% CAGR.

The travel & leisure sub sector offers unique opportunities for investment, driven by consumer demand for premium brands and memorable experiences. LDC has supported a range of exciting businesses in this sub sector to grow. Over the course of its partnership with LDC, the UK’s largest marine operator Aquavista nearly tripled revenue and doubled the size of its marina portfolio. During a successful six-year partnership with LDC, award-winning outdoor adventure business Zip World more than doubled the number of sites across England and Wales, launched new adventure attractions, and secured B Corp status. As a result, turnover increased by 95% and headcount grew by 200%, supporting a valuation of over £100m for the business.

Within the niche consumer sub sector, LDC has experience of backing ambitious management teams operating in differentiated markets, with a clear brand identity. With our investment and support, optical provider Duncan & Todd has expanded its retail footprint in Scotland, diversified its service range and invested in a state-of-the-art manufacturing facility that services its 40 retail branches and independent opticians across the UK.  And during our partnership with LeMieux, a leading global equestrian brand, the business has increased headcount by over 185% and continued its growth into North America.

Within each of LDC’s core sub sectors, there are subtle shifts in consumer behaviours with a flight to quality, and an interest in accessible, treating and experiential items, rather than big-ticket purchases.

In food & drink, provenance can be key – enabling brands to demonstrate their authenticity, sustainability and heritage credentials to consumers. Consumers are seeking out treat items from trusted brands, which has been good news for companies LDC has invested in.

In travel & leisure, there are unique opportunities for investment, driven by consumer demand for premium brands and memorable experiences. Travel businesses offering experiential activities are well-positioned for growth, as customers increasingly seek differentiated, high-quality options. For leisure brands, e-commerce is vital.

In niche consumer, there is often an opportunity to expand from a specific niche market offering to a more mass-market proposition. Not dissimilar to other sub sectors, factors like provenance, brand identity and front-end digitisation are all key elements driving growth in niche consumer businesses.