Little Moons, the UK-based mochi ice cream desserts business, is preparing to open its second factory, marking its first expansion outside of London.
The company, founded by siblings Howard and Vivien Wong in 2010, has made an undisclosed investment in a 50,000-square-foot facility in Kettering, Northamptonshire. Production is expected to commence in the first quarter of next year.
In 2020, Little Moons established its first factory in Park Royal, North London. The company is headquartered in Farringdon, also in the capital.
Little Moons has introduced its mochi dough-wrapped ice cream treats in Australia, where retail sales exceeded A$10m ($6.4m) following the launch last autumn, as stated by the company.
From the eighteen-month period recorded up to 30 December 2022, Little Moons reported a group turnover of £64.5m ($78.6m), compared to £25.5m in the twelve months leading up to 30 June 2021.
The company supplies major UK supermarkets, including Tesco, Sainsbury’s, and Morrisons, and has expanded its reach to other countries such as France, Germany, Austria, Switzerland, Denmark, Italy, Norway, Spain, and Croatia.
In the upcoming autumn, Little Moons plans to expand its presence to New Zealand.
Last year, Little Moons sold a minority stake in the business to US-based private-equity firm L Catterton. The exact amount and size of the transaction remain undisclosed.
Accounts filed with Companies House in London indicated that the company achieved an adjusted EBITDA of £8.5m in the eighteen months ending December, an increase from £6.9m in the previous twelve months. However, net profit declined from £4.8m to £1.5m.
“The UK and European ice-cream markets are highly competitive, placing pressure on suppliers to deliver high-quality products at competitive prices,” stated the filing.
“To meet growing consumer demand, the business is executing a strategic program that includes the construction of a new factory to expand production capacity. Furthermore, the company will focus on sales growth by strengthening distribution with existing retail partners and expanding its presence in international markets.”
