In a striking success story showcasing the benefits of Brexit, Gravity Drinks, a premium drinks producer based in Cheltenham, has secured a £4.5 million financing package to expand its exports to markets across the globe, including Asia.
The financing, provided by HSBC and guaranteed by the Government’s UK Export Finance (UKEF), will support the company’s impressive growth in international trade.
Founded by two friends, Gravity Drinks has rapidly grown since its inception in 2018, exporting premium spirit and liqueur brands to a range of overseas markets including the USA, Canada, Scandinavia, Taiwan, Japan, and New Zealand. The new funding will allow the company to further expand its footprint, capitalising on the UK’s post-Brexit trade agreements, such as the highly successful Japan-UK Comprehensive Economic Partnership Agreement, which has opened doors for British businesses to thrive in the Asian market.
£4.5 Million Financing to Fuel Global Growth
The financing deal includes a £3 million receivables finance facility and a £1.5 million trade finance facility, with the latter guaranteed by UKEF under its General Export Facility (GEF). This scheme, designed to help UK exporters access much-needed capital, has already supported over £576 million in working capital loans in the last financial year.
Gravity Drinks has already put this funding to work, ensuring a bumper Christmas season. The company recently produced 35,000 units of its popular “Whisky Tour of the World” advent calendar for Costco, which has been a sell-out success for the 2024 holiday season.
Brexit Opens New Doors for British Businesses
Gravity’s continued success in global markets highlights how Brexit has empowered British businesses to explore new export opportunities. The UK’s trade deals with countries like Japan have provided access to lucrative markets, making it easier for firms like Gravity Drinks to expand their international presence. This financing package is just one example of how smaller businesses are capitalising on these opportunities to secure their future growth.
Hitesh Patel, Export Finance Manager for London at UK Export Finance, said: “It has been a pleasure working with Jim Denoon’s team to understand the financial and insurance needs of the business. Immersed in local markets, Gravity Drinks has taken the time to really understand local seasonal celebrations globally and tailored drinks solutions to capture their audience. The overwhelming majority of UKEF’s deals support smaller businesses like Gravity, ensuring that entrepreneurs from all over the country can benefit from international trade.”
Supporting Local Economy and Creating Jobs
The financing will also enable Gravity Drinks to invest in new equipment and create jobs at its Cheltenham headquarters, contributing to the local economy. With seasonal demand surging in the run-up to Christmas and New Year, this additional working capital is crucial for the company to ramp up production and meet the needs of both UK and international customers.
Jim Denoon, Director at Gravity Drinks, emphasised the importance of securing the right financial partners:
“With continued demand from our customers in the UK and overseas having the right partners in place to help finance our growth is crucial to our business. UK Export Finance have been supportive of us from the early days of Gravity.”
Campbell Chisholm, HSBC UK Relationship Manager, added: “As a global bank, HSBC UK can offer comprehensive support to businesses that trade internationally, so we’re excited to see Gravity Drinks taking its fantastic products to new markets. It is a privilege to also support the production of new products for UK customers and I am delighted that the company’s growth is supporting the local economy through the creation of new jobs.”
Bright Future for Gravity Drinks
Since its founding, Gravity Drinks has enjoyed year-on-year growth, with total orders reaching just under £8 million in 2024 alone. The company’s innovative approach to tailoring bespoke drinks packages for diverse markets, coupled with strong financial backing, has positioned it as a rising star in the premium drinks industry.
As the UK continues to negotiate favourable trade deals post-Brexit, companies like Gravity Drinks are proving that British businesses can thrive on the global stage, creating jobs, supporting local economies, and bringing the best of British craftsmanship to the world.
The announcement was made alongside International Trade Week, an annual event run by the Department for Business and Trade which includes a series of virtual and in-person events to advise UK businesses on different ways to reach new international markets.
