Interpath appointed as Mighty Drinks administrator

Interpath Advisory managing directors James Clark and Howard Smith have been appointed as joint administrators to Watkins Drinks Limited, trading as Mighty Drinks following its failure to secure further investment.

The Leeds-based firm, known for its pea protein and oat milk products, had been operating nationally, with stockists including major supermarkets and health food stores. 

However, like others in the plant-based sector, it has struggled in recent years with rising costs and weakening consumer confidence, which affected its ability to scale and reach profitability.

Efforts to attract new investment failed to produce a solvent solution, prompting directors to file for administration.

Clark said: “We will now work with the company’s stakeholders to explore the options available, including seeking offers for the business and its assets, including the Mighty brand and related intellectual property. We would invite any parties who may be interested in acquiring the business to make contact with us as soon as possible.”

Tom Swiers, food and drink sector lead at Interpath, added: “There has been an increasing focus on profitability within all aspects of the ‘alt’ category, following the investment boom of a few years ago. It is no longer simply a case of, ‘growth as number one priority’.

“The Mighty team has created a great product, with an exciting kids-milk range set to launch with retailers given the allergen-free benefits of pea protein, and a path to profitability from improved margins and increased volumes.”

He concluded: “Unfortunately, however, this has come at a point in the company’s cycle where it required further investment which was not forthcoming from typical investors in this space, nor was it attractive to typical ‘special situations’ investors given the relatively early stage of the company’s development.”