Manchester head-quartered Cocogreen, the world’s largest supplier of coir substrate products, has received a £4.75m funding package raised by the North West’s leading independent firms of Chartered Accountants and Business Advisors, Cowgills. Head-quartered in Manchester, Cocogreen will use the funds to accelerate its visionary plans for sustainable growth, while supporting its ongoing commitment to customers.
Cocogreen has been a reliable manufacturer and supplier to some of the world’s biggest fresh produce growers for the last decade. The funding, which has enabled Cocogreen’s leadership to maintain 100% equity, will help the company to invest into future growth plans and supply chain, in order to protect supply for existing customers, whilst increasing availability for new clients in emerging sectors.
Serving cultivation markets such as berries, tomatoes and pharmaceutical crops, Cocogreen has seen significant growth in recent years due to its products’ various environmental benefits. Derived from a renewable resource, the coconut-based solutions provide the horticulture industry with carbon negative and better performing alternatives to controversial carbon-emitting peat products – something that continues to hold a key position in recent climate change policies.
The company, which sells to every continent across the world, was recently recognised for its outstanding growth in exports, receiving the most prestigious business accolade: The Queen’s Award for Enterprise in International Trade – 2018. It was also the first in the industry to be independently recognised for its dedication to the triple bottom line – social environmental and financial – receiving the SA8000 standard in 2014.
Thomas Ogden, co-founder and group Commercial Director at Cocogreen said: “We’re delighted to have received the funding package supported by Cowgills. This shows that our partners have confidence in our consistent track record and historical performance. It also highlights support for our business plan and sustainable business model, both of which have enabled the company to become a disruptor and innovator in the fresh produce industry over the past decade.”
Alex Hesketh, partner and head of international at Cowgills added: “Having worked with Cocogreen for a number of years and having a genuine admiration of the business, it’s really satisfying to see them embark on what will be a phase of unprecedented growth, through the utilisation of their newly introduced funding facilities. To have been able to assist them in achieving this is extremely rewarding. Given the international structure of the business, many of the traditional funding options were closed to us on this one; but with some creative thinking, tenacity and teamwork, we were able to achieve a fantastic outcome.”
Ben Day, Director of Cowgills’ business funding team continued: “We prepared an in-depth funding proposal which included an analysis of the business, its strategy and expected cash flows. We also worked deeply with both the lenders and Cocogreen, leading to a package that – when combined – totalled almost £5 million. This will see the business through its next stage of growth, building on its loyal customer base and reputation for reliable and consistent quality.”
Dr. Sudesh Fernando, co-founder and Group Managing Director at Cocogreen, concludes: “There is a lot of uncertainty in the substrate industry at the moment, especially with recent consolidations amongst other players in the market due to insecure supply models. This funding should give our customers confidence that Cocogreen has expertise, clear plans for the future and that we will build upon a well-established, proven business model, while continuing to service our clients internationally – old and new – to the highest standards.”