New Anglia Growth Hub funding helps Gnaw Chocolate buy new wrapping machine to exploit smaller-sized bar export opportunity
Norwich-based chocolate manufacturer, Gnaw, is looking to significantly grow its business by launching a new range of healthier option mini bars, in response to the growing trend for impulse-driven chocolate purchases.
The new bars have been hugely successful internationally, especially for Gnaw’s French distributor. To be able to deliver the volume of new bars ordered by Carrefour and the Casino Group, it is going to have to invest in a new flow-wrapping machine.
Because of the nature of the new business opportunity, including significant expansion of the French export business, speed was of the essence, which is where New Anglia Growth Hub stepped in. It has helped to facilitate a 20% part-funding of the new machine, from the Small Grant Scheme. That has enabled Gnaw to go ahead and order the new wrapping machine in good time to meet the increased demand.
The new equipment will be dedicated to the smaller-sized 35g bars allowing its other wrapping machine to continue to run uninterrupted for its larger 100g bars. Gnaw has produced three new flavoured 35g bars – milk chocolate with cranberries, raisins, Norfolk granola, and seeds; milk chocolate with peanuts, Norfolk granola and seeds; and dark chocolate with orange, Norfolk granola and seeds.
Matt Legon, Founder and Director, Gnaw Chocolate, commented, “I have been able to scale-up my production line quickly, and it has freed up my resource to focus on developing our international strategy and negotiating with our international customers rather than having to source finance. Undoubtedly, this has enabled us to act nimbly and take advantage of this valuable opportunity to enter a new sector of the market. Speedy new product development is a critical success factor in our industry and the Growth Hub’s support has certainly enabled us to proceed quickly with our plans.”
Gnaw is the brainchild of Matt and his wife, Teri Legon. After graduating from the University of East Anglia in Norwich in 2005, Matt pursued a career in investment banking in London. He returned to Norwich in 2010 to set up Gnaw, driven by a combination of his love for chocolate and his identification of a gap in the market. Matt believed chocolate manufacturing had become too serious and that people had lost touch with the sheer enjoyment associated with eating chocolate. He saw a market for an innovative, thought-provoking and fun range of quirky chocolate bars where even the packaging would put a smile on customers’ faces!
Nigel Best, New Anglia Growth Hub Manager, said, “Gnaw is a great success story for Norfolk. Its specific challenge was how to manage super-fast growth effectively so that the business didn’t overstretch itself. Matt also knew he had to act quickly to make sure Gnaw didn’t miss out on the great opportunity that presented itself.
“It was very clear from the outset that grant funding would help Matt to fast-track the production and distribution of the new mini bar range, so we suggested that Gnaw apply for 20% part funding from the Small Grant Scheme. For a successful application, a business needs to present a detailed business case to demonstrate how it complies with the criteria. We supported Matt in his submission, helping him to understand the requirements and to be the main interface with the scheme. I am delighted that we have been able to help one of Norfolk’s star companies to grow and prosper. It’s exactly the type of situation that the Growth Hub was set up to support.”
Matt has grown the workforce to 33, as his operation has flourished both in the U.K and overseas. 80% of Gnaw’s turnover is from international trade with the manufacturer now exporting to 20 countries including France, the US, Scandinavia, the Middle East, Japan and China. Turnover in 2017 was £1.3m but, on the back of the new range of bars, it has ambitions to grow that to £4.7m in 2018.
If you are starting up a business and need some help, please contact the New Anglia Growth Hub on 0300 333 6356 or email [email protected].
