Loughborough company buzzing after £2.5m investment
Hive, the Loughhborough company that creates smart packaging for major consumer packaged goods (CPG) brands, has landed a £2.5m investment deal with private equity firm Encore Capital.
Hive says it will use the cash to introduce a subscription model with the ultimate ambition of giving every CPG pack a unique identity to help brands run promotions that are proven to increase sales and build a direct relationship with their consumers.
The firm work with brand such as Pepsico, Heineken, Arla Foods and Nestlé. The investment will be used to help Hive remove the capital cost of enabling printers to print Hive codes and roll-out a “coding-as-a-service” model that will give CPG brands far more control over their promotions with a subscription option.
Rajesh Shah, a partner at Encore Capital, said: “We have been actively looking for investments in this space. Hive has developed a market leading technology that has made it an integral part of the marketing infrastructure for an impressive roster of CPG clients, and we believe there is exciting potential for growth.
“Jonathan and his team have an extensive understanding of the market and value creation opportunity, and our investment and experience in supporting fast growth companies will act as the catalyst for the business to deliver its growth plan and beyond.”
Jonathan Jackson, CEO at Hive, added: “The investment reaffirms our belief that CPG brands want to engage directly with their consumers and our Hive code-printing solution is the best way for brands to understand their consumers and link purchase to engagement.
“The funding will allow us to enter new markets where the capital investment required has been a barrier to growth. A promotion using unique codes will increase sales more than if the promotion is run without a code and we can continue towards our goal of giving every item of packaging an individual, unique identity to allow CPG brands to build a direct relationship with their consumer.”
Hive currently prints over six billion Hive codes on packaging a year and employs 40 people.
