Healthy food retailer behind 600-calorie protein pizza wins £10m investment

Its sub-600-calorie protein pizzas have already proven a hit at major supermarkets – and now online healthy food retailer MuscleFood is eyeing further growth after securing £10m investment.

The online Basford company, which also sells lean meats, high-protein breakfasts and low-carb meals, plans to use the funding from private investor BGF (British Growth Fund) to develop its core offering in the UK and continue its European expansion.

The investment comes after the business , valued at £50m after being set up five years ago, sought backing to surpass its growth expectations and continue to make inroads into British supermarkets – having already secured listings in Sainsbury’s, Co-op and Spar.

Elite sportsmen and women among its fans include world champion boxer Tony Bellew, Paralympic gold medallist Richard Whitehead, and Liverpool footballers Simon Mignolet and Alberto Moreno.

Founder Darren Beale said: “This marks a big step forward in the progression of the company and the brand.

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“It gives us the ability to expand faster and further than we could have done without the cash injection and to invest in concepts we believe could bring us a good return.

“We’re a team who passionately care about one thing – making it easier for our tribe of customers to achieve their fitness and health goals.

“And this is what really excites me and the team about this partnership with BGF.

“It will help us accelerate our growth and that means more people will realise it doesn’t have to be expensive or difficult to live healthy everyday – with MuscleFood it is easy.

Musclefood's healthy pizzas with less than 600 calories

“The expertise we’re gaining from BGF will help us get in front of important contacts and open doors for us both on the UK high street and further afield.

“The team have worked hard over the years to build a loyal customer base, to explore new markets and to source and develop innovative products, which have been a hit with fitness fans and the wider market.”

MuscleFood was founded in 2013 and has already surpassed £100m turnover, selling 53,000 healthy items each day to customers ranging from fitness fans to money-conscious families.

It has carved out a retail niche with its mix of healthy foods, with the innovative protein pizza selling almost 250,000 units in its first year to make the company the fifth biggest UK pizza retail brand.

As well as its website and supermarkets , products are stocked in more than 300 Musgraves-owned stores in Ireland.

Talks are underway with other major food retailers, while the company recently launched in the Netherlands, Germany and France.

There are plans to grow across Austria, Spain, Poland, Ireland and Italy during 2018, with Portugal, Denmark, Sweden, Bulgaria and Switzerland also targeted.

The company’s rapid growth makes it one of the UK’s fastest-growing small and medium-sized enterprises (SMEs) and has attracted the attention of brands such as Heineken and Knorr, which have been eager to market their products to MuscleFood’s customers.

BGF was set up in 2011 and has since invested about £1.3 billion in 200 SMEs, including gym chain Xercise4Less, recipe kit company Gousto and children’s ride-on suitcases brand Trunki.

BGF investor Greg Norman said: “The MuscleFood team is talented, focused and passionate.

“It has successfully managed the high-growth experienced in the last three years and is ambitious about accelerating the expansion.

“We are pleased to be supporting the group as it continues to scale.”

Global investment bank GCA Altium provided corporate finance advice to the management team on the transaction.

Managing director Simon Lord said: “MuscleFood has grown rapidly since inception to become an extremely profitable and highly cash generative business.

“It operates in a sector that has raised vast sums in the UK and US and it has been a real pleasure to have advised the founders and the wider DB Food Group shareholders on its first external equity investment by BGF.”

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