CoGoGo is delighted to welcome to the market Old Elephant Fudge, a long-established manufacturer and retailer of high-quality artisan fudge with an excellent local reputation and particularly strong following throughout Lincolnshire.
Established for approximately 25 years, the business has developed a distinctive product range and recognisable brand, selling directly to customers through farmers’ markets, agricultural shows, exhibitions and other events, alongside online sales.
The business is offered for sale due to the current owner moving abroad and the previous owners retiring.
Old Elephant Fudge specialises in producing high-quality fudge using carefully selected ingredients.
A major strength of the business is its extensive product selection, with around 50 different flavours generally available. The quality, range of flavours, appearance and presentation of the fudge have helped distinguish the brand from competitors.
Sales have traditionally been generated through farmers’ markets, agricultural shows, exhibitions and similar events, supplemented by online sales. There are currently no significant wholesale sales, presenting another potential avenue for future development.
The business benefits from a product with a long shelf life and very little wastage, provided sufficient sales volumes are maintained.
We are advised that an experienced individual operating from a suitable kitchen should be capable of manufacturing fudge with a selling value in excess of £3,500 per day, although historically the business generally produced smaller batches except when preparing for major shows.
Scope for Growth
The business offers substantial potential for an energetic new owner to expand upon its established foundations.
In particular, there is scope to significantly develop the business's online presence and e-commerce sales. The existing website and social media presence are included in the sale, although these would benefit from upgrading and further development.
Further opportunities include attending additional farmers’ markets, agricultural shows and events, particularly in more affluent areas and locations beyond the business's traditional travelling radius.
Wholesale sales are currently insignificant, potentially providing an additional route to market for a purchaser wishing to develop relationships with independent retailers, farm shops and other suitable outlets.
Equipment & Assets
A comprehensive selection of equipment and physical assets is included with the business, providing an incoming owner with much of what is required to continue production and event-based retailing.
These assets include a fudge kettle (advised replacement cost approximately £4,500), large microwave, cooling trays, spatulas, jugs, storage and transportation boxes and various stainless-steel catering tables.
Retail and event equipment includes two gazebos with associated sheets, tarpaulins, weights and banners; a larger 4m x 3m marquee modified to provide customer rain shelter; a large parasol and base; four demountable display counters; two demountable tables with stainless-steel tops; portable handwashing facilities; portable scales; pop-up banners; a marketing flag; and assorted market-stall equipment.
Any suitable remaining ingredients, stock and consumables are also included.
A large car or, preferably, a van would be beneficial for transporting products and equipment to outdoor markets and events.
Business Support & Intellectual Property
The acquisition provides considerably more than the physical equipment.
The purchaser will receive access to the business's recipes, manufacturing knowledge and supplier information, together with guidance regarding profitable markets.
The owners are also prepared to provide initial practical assistance, including up to three manufacturing tuition sessions and support at up to three events, subject to location and time constraints.
The existing website and social media presence are included, subject to the necessary upgrades and transfer arrangements.
Assistance can also be provided regarding risk assessments, Environmental Health requirements and insurance, together with continuing consultancy support for 12 months following the acquisition.
Key Selling Points
Established artisan fudge business trading for approximately 25 years
Strong local brand and established following, particularly throughout Lincolnshire
Extensive range of approximately 50 fudge flavours
Proven direct-to-customer sales through established markets, shows and events
Significant opportunity to develop online, geographical and wholesale sales
Long shelf-life product with historically low levels of wastage
Comprehensive manufacturing, market and display equipment included
Exisiting website and social media presence
Practical manufacturing and event support available following completion
12 months' ongoing consultancy support
Flexible owner-operator business with substantial potential for further growth
Financial Profile
We are advised that during the period from 2015 to 2020, annual turnover was in the region of £45,000, with the business operated part-time by one person.
We are further advised that during 48 market trading days between April and December 2019, the business generated sales exceeding £47,000, involving approximately 3,000 miles of travel.
Individual market performance naturally varies according to the event, location, weather and pitch. We are advised that sales at a successful market can exceed £1,000 in a single day, while the business's record trading day at the Lincoln Christmas Market generated sales exceeding £8,700.
We are advised that ingredient costs are typically approximately 20–25% of the selling price, depending upon the recipe and retail price.
The owners believe that, with full-time attention and expansion of the existing sales channels, there is potential to develop annual turnover to at least £80,000 and potentially beyond, with potential net income estimated by the owners at approximately £35,000–£45,000. These figures represent the owners' expectations rather than guaranteed future performance.
