West cheese maker Alvis Brothers is increasing production by nearly a third after receiving a seven figure finance package from HSBC.
The funding will support further growth at the Redhill, North Somerset firm, including expansion of its milking and packing facilities to meet growing demand in the UK and around the world.
The company, which trades as Lye Cross Farm and exports to 30 countries across the globe, plans to increase production by 1,000 tonnes to 4,500 tonnes a year.
It milking parlour facility has recently been upgraded to milk 600 cattle, up from 400, and with the new funding will be further expanded to take this to 900 when demand requires.
It has also added a new packing line, increasing its ability to pack 20g to 40g ‘mini’ cheese portions – a strong growth market – and doubling packing capacity from 80,000 units a day to 160,000.
The company secured the finance with HSBC’s Devon and Somerset commercial team in a deal led by senior agriculture manager Debbie Bunclark. The package includes sufficient working capital to finance the duration of the production process.
The Alvis family has made cheddar at Lye Cross Farm for three generations.
Pictured, from left: John Alvis, John Alvis snr and Peter Alvis.
It now produces a range of organic cheddar and UK cheeses under the Lye Cross Farm Brands. Its mature cheddar cheese enjoys Protected Designation of Origin status.
Turnover hit £25m last year, with 25% of sales overseas in markets ranging from Korea, the US, Dubai, South Africa, Saudi Arabia, to a number of European countries.
In the UK, the company sells through its own farm shop and through major supermarkets, including Sainsbury’s, Aldi, Asda and Ocado.
Managing director Peter Alvis said: “This finance package has enabled the business to invest to reach the next stage in its development. The investments we have made will have tangible benefits to the business and will enable us to sell more produce both at home and overseas.
“Our aim to grow both turnover and profitability over the next 18 months, and of course opening up new international markets will be key to that.
“Producing cheese takes time; you invest in milk at today’s prices to sell your produce a year down the line, so you need a supportive bank and the right financial structure to support the business.”
HSBC area commercial director Phil Sargeant added: “Alvis Brothers is a fantastic business that promotes the South West all over the world. It has a very capable and experienced management team with a clear strategy for growth.
