Development Bank supports expansion at drinks distributor following acquisition
An investment from the Development Bank of Wales is helping Cellar Drinks Company consolidate operations and prepare for future growth following its acquisition of Hurns Beer Co, establishing a larger distribution hub in Blaenau Gwent.
The loan, from the Development Bank’s Wales Flexible Investment Fund, supported the integration of the two businesses, enabling operations across Swansea, Crickhowell and Caerphilly to be brought together into a single site in Tredegar. The move has increased warehouse capacity for the business, which in turn will support higher trading volumes and create opportunities for bulk purchasing as the combined business continues to grow. The Development Bank has supported the business through earlier stages of its growth
Rhys Anstee purchased Cellar Drinks Company in January 2021, having spent a lifetime in the drinks industry after following his father into the trade. Together with his wife Chyrelle, he has since overseen the growth of the business, culminating in the acquisition of Hurns Beer Co and the move to the new distribution hub in Tredegar.
The investment will fund the warehouse move, systems upgrades, building works and increased operational capacity. It will also support the recruitment of two telesales staff and three lorry drivers.
Rhys Anstee, director of Cellar Drinks Company, said: “This is exactly where we need to be. It brings three sites into one, and instead of having three different sites bursting at the seams, we’re now all on one site with room to grow.
“This acquisition gives us the scale to increase efficiency, expand our stock holding and improve the service we provide to customers across Wales. Bringing the business together in Tredegar creates a strong platform for future growth while keeping our roots firmly in Wales.”
Aled Robertson and Kelsie Taylor, portfolio executives at the Development Bank of Wales, said: “By supporting the integration of Cellar Drinks Company and Hurns Beer Co, we’re helping to create a larger, more resilient Welsh-owned business with the capacity to grow, create jobs and retain value in Wales.
“The move to a single operational hub will increase efficiency, strengthen the company’s distribution capability and provide the foundations for continued growth. Having already supported the business twice before, it’s great to see Cellar Drinks continuing to scale and invest for the future.”
Financed by Welsh government, the £500m Wales Flexible Investment Fund supports Welsh businesses with terms of up to 15 years. Loans, mezzanine finance, and equity investments are available from £25,000 to £10m.