Mona Dairy, a UK-based private-label cheese business, is facing potential collapse without new financing or a buyer. Established in 2017 by Ronald Akkerman and David Wynne-Finch, the Welsh company is in dire need of support after investing £20 million into a facility in Anglesey, Wales in 2021.
The company recently issued a statement on their website, stating, “After five years of striving to develop the newest and most sustainable cheese factory in Europe and facing challenges beyond our control, Mona Dairy is at risk due to insufficient funding from key stakeholders.” Despite the current situation, there is optimism that a new owner or financing solution may be found.
Like many start-ups, Mona Dairy is feeling the impact of high UK interest rates, driven by supply chain disruptions from the pandemic and the conflict in Ukraine. This has created a general risk-off environment, causing investors and lenders to be cautious about providing funds, especially to new businesses. However, with UK inflation stabilizing, there is hope that lending conditions will improve as borrowing costs decrease.
In 2021, Mona Dairy secured a five-year lease on a plant in Holyhead, Anglesey, with plans to purchase the facility after the lease term. The £20 million investment in the 25,000 square-foot plant involved a mix of grants, loans, and equity financing. The site was set to produce Welsh artisan cheeses, cheddar, Gouda, and Edam for retail and foodservice customers.
Mona Dairy’s managing director Akkerman and chairman Wynne-Finch are now focused on finding a new home for the 31 milk suppliers associated with the business. In the interim, the company has secured an established dairy processing company as a temporary buyer for the milk. The initial investment was also expected to create 100 new jobs at the Holyhead plant.
In a message on their website, Mona Dairy expressed their commitment to retaining their staff during this challenging period as they explore their options. The company remains hopeful of finding a viable solution to continue their journey, potentially under new ownership.
