Finsbury Food Group acquires Lola’s Cupcakes

Finsbury Food Group, which supplies bakery products to both the foodservice and retail sectors, has acquired high street bakery brand Lola’s Cupcakes.

 

The deal marks Finsbury’s entry into the direct-to-consumer market and is part of the business’s long-term growth strategy, which includes targeted investments in innovative, high-growth segments of the bakery market.

 

The purchase of the majority 70% stake in Lola’s is aimed at accelerating the business’ expansion in the north. Currently the chain has more than 30 locations across London and Birmingham, with ambitions to grow to more than 50 sites in the coming years.

 

The cake brand was founded in 2006 by two young female entrepreneurs. Since 2011, it has been run by the father-and-son duo of Mario and Asher Budwig, with the support of investor Sir Harry Solomon.

 

Lola’s combines an e-commerce platform, which accounts for around half of sales, with a network of 45 kiosks and collection lockers in high-footfall locations including major London transport hubs. The business generates annual revenues of £25m and employs around 400 people, operating from its Park Royal facility in London.

 

Both Asher and Mario Budwig will remain in their current roles, with no changes to day-to-day operations or staffing anticipated as a result of the transaction.

 

Asher said: “I am excited to be working with the Finsbury team on the next stage of Lola’s journey. Over the past year, I have had the pleasure of getting to know them and seeing first-hand their impressive production facilities in Scotland. With their expertise in large-scale bakery and the wider support of the group, I am confident that we can grow Lola’s in ways that stay true to who we are.

 

“There is huge potential for collaboration, innovation, and sharing best practice – and of course, sharing plenty of cake along the way.”

 

John Duffy, chief executive of Finsbury Food Group, said the buyout “represents another step forward in Finsbury’s acquisition journey as a buy-and-build business, allowing us to enter the direct-to-consumer market for the first time”, and added: “Lola’s is an entrepreneurial and much-loved UK brand with a strong digital presence, and together, we see significant potential for growth and innovation across both Finsbury and Lola’s.”

 

Terms of the deal were not disclosed.

 

Finsbury Food Group believes the acquisition underscores its intent to further diversity offerings and scale the business, following its buyout of Lees’ Foods in 2023. The business also encompasses the Kara Foodservice, Fletchers, Johnstone’s, Lightbody, Nicholas & Harris, Ultrapharm and Memory Lane Cakes brands.