Health market puts fizz in Sunderland drinks firm

Aug 25 2009 by Andrew Mernin, The Journal

THE man who saved a 120-year-old soft drinks firm from the brink of extinction this year says the company is gearing up for growth as it prepares to tap into a new thirst for healthy beverages.

One of the region’s best-loved drinks firms, Villa Soft Drinks, fell into administration at the turn of the year, forcing 58 people out of work at its plant in Sunderland.

Two months later it was rescued by Malcolm Slatcher, initially saving 25 jobs, and effectively protecting one of the North East’s most iconic brands.

Six months on, the firm is on the way to its former glory as it targets new revenue streams at home and abroad.

Its workforce has grown to 37 and the company expects 15% year-on-year growth as it prepares to launch a range of products aimed at increasingly health-conscious drinks consumers.

It is also planning on upping the production capacity at its headquarters by investing about £260,000.

Meanwhile, on the back of a recent one-off shipment of thousands of bottles to China, the firm is hopeful of developing a sustained foothold in the vast Asian market.

The company has also had inquiries from a Caribbean-based drinks firm which is keen to bring its products into the UK.

Mr Slatcher said: “We are embarking on a range of products which have health benefits, which is part of the changing world we live in where people are more health conscious.

“We are also in the early stages of looking at a £260,000 capital expenditure project for our Sunderland site.”

Villa was founded on carbonated drinks and developed further in 1990 when a borehole was sunk in Sunderland to supply the growing market for bottled water.

Mr Slatcher also owns the Bottling Company at Eaglescliffe which manufactures drinks for leading brands such as Vimto.

The purchase of the Sunderland company was supported by a Grant for Business Investment of £132,000 from One North East alongside cash reserves and asset-based finance.