Cheltenham-Based Gravity Drinks Celebrates Global Success with £4.5 Million Export Deal
Cheltenham’s own Gravity Drinks is raising a glass to international success as it secures a £4.5 million financing deal to support its rapidly growing export operations.
With backing from HSBC and UK Export Finance (UKEF), this premium drinks company is well-positioned to meet the surge in global demand during the holiday season, from Christmas to New Year, and aims to expand further in key markets like the United States, Japan, China, and Australia.
Financial Support to Fuel Global Expansion
Gravity Drinks, a British premium drinks business, has partnered with HSBC, which provided a £4.5 million financing package, partially guaranteed by UK Export Finance, the UK’s government export credit agency. The financing package comprises a £3 million receivables finance facility and a £1.5 million trade finance facility. This crucial support allows Gravity to boost production to fulfil seasonal orders and accommodate its ambitious growth plans in Asia.
According to UKEF, the trade finance guarantee falls under their General Export Facility (GEF) product, which has helped many UK exporters access over £576 million in working capital loans in the last financial year. This support is instrumental for Gravity Drinks, enabling them to leverage international demand and expand their product offerings.
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Meeting Seasonal Demand and Expanding to New Markets
Founded in 2018 by two friends, Gravity Drinks quickly gained a reputation for high-quality spirits and liqueurs, building a strong customer base in markets such as the USA, Canada, Scandinavia, Taiwan, Japan, and New Zealand. Their premium products are especially popular during seasonal celebrations, creating a high demand for additional working capital to increase production.
This year, Gravity Drinks used the financing to fulfil their holiday production goals, including the shipment of 35,000 units of Costco’s annual “Whisky Tour of the World” advent calendar—a popular item that has already sold out in 2024. Additionally, the funds have allowed the company to introduce several new products and custom white-label options for international customers, particularly in Asia.
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Supporting Growth and Creating Jobs in Cheltenham
The recent financing deal has not only fueled Gravity Drinks’ expansion efforts but also facilitated local growth. With the additional funds, Gravity has invested in new equipment, expanded its workforce, and continued its trend of year-on-year revenue growth. By the end of 2024, the company expects to achieve a total order value close to £8 million.
Insights from Industry Leaders on Gravity’s Success
Hitesh Patel, Export Finance Manager for London at UKEF, expressed his satisfaction with Gravity Drinks’ achievements, saying, “It has been a pleasure working with Jim Denoon’s team to understand the financial and insurance needs of the business. Immersed in local markets, Gravity Drinks has taken the time to really understand local seasonal celebrations globally and tailored drinks solutions to capture their audience.”
Patel also highlighted UKEF’s commitment to supporting smaller businesses across the UK, noting that the majority of their financing deals help entrepreneurs like Gravity Drinks benefit from the opportunities international trade offers.
Jim Denoon, Director at Gravity Drinks, also shared his appreciation, stating, “With continued demand from our customers in the UK and overseas, having the right partners in place to help finance our growth is crucial to our business. UK Export Finance has been supportive of us from the early days of Gravity.”
From HSBC, Campbell Chisholm, UK Relationship Manager, expressed pride in Gravity Drinks’ journey. “As a global bank, HSBC UK can offer comprehensive support to businesses that trade internationally, so we’re excited to see Gravity Drinks taking its fantastic products to new markets. It is a privilege to also support the production of new products for UK customers, and I am delighted that the company’s growth is supporting the local economy through the creation of new jobs.”
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Growing Alongside International Trade Week
The announcement of Gravity Drinks’ success coincided with International Trade Week, an initiative by the Department of Business and Trade to support UK businesses in reaching new global markets. This event, featuring a mix of virtual and in-person sessions, aims to educate and equip UK companies with the tools and insights needed to navigate international trade opportunities.
A Promising Future for Gravity Drinks
With robust support from HSBC and UKEF, Gravity Drinks is on a trajectory to become a prominent global player in the premium drinks market. As they expand their footprint in new markets, introduce innovative products, and strengthen their local operations, Gravity Drinks exemplifies the success that UK-based small businesses can achieve on the international stage.
The company’s journey from a modest start in Cheltenham to an internationally recognised premium drinks brand serves as a testament to the power of effective financing partnerships and the demand for high-quality, tailored products worldwide.
