Borough Broth, the fast-growing bone broth brand backed by Duncan Jones, has secured £7.5m of new investment to support a major expansion as demand for natural and minimally processed foods continues to rise.
The funding comes from Piper, the consumer-focused private equity firm known for backing brands like Ancient + Brave and luxury candle maker Neom. The deal will give Piper a one-third share, valuing Borough Broth at £19.5 million.
Founder Ros Heathcote, a former data analyst who founded the company a decade ago, retains just over 40 percent, remaining the company’s largest shareholder. Jones, the film director and son of David Bowie, is said to own around 6 percent.
Heathcote said the capital would be used to build a 27,500 sq ft manufacturing facility near its existing site in Greenford, west London. The company employs 50 people and doubled sales last year following new listings with Tesco and Sainsbury’s. Sales are expected to reach £11.5 million this year.
With recruitment costs rising following last week’s budget, Heathcote says the investment will also allow the company to introduce greater automation.
“We don’t need to recruit aggressively – we will make up the difference through automation,” she said. “We won’t lose any staff, but we don’t want to hire a lot more staff.”
January is typically the brand’s busiest time, as consumers turn to broths for winter cooking and healthier eating after the holiday season. Heathcote said current public concern about highly processed foods (UPFs) is also driving shoppers towards simpler, more natural ingredients.
“The data shows that people want to recognize the ingredients in a product and feel like they can make it at home,” she said. “That’s always been my rule – everything we use has to be something you can use in your own kitchen. No shortcuts.”
Borough Broth uses around 20 tonnes of British bones each week to produce its range of stocks, stocks and cooking bases. The expansion will allow the company to further increase production as retailers push for more supply.
With Piper’s investment and increasing consumer appetite for minimally processed, nutrient-dense foods, Borough Broth is now looking to expand its presence in mainstream retail and expand into new channels.
