A Hull family business that provides hampers for clients including Jaguar Landrover, EE and ITV is set to double its capacity following a £277,000 loan from NPIF II – Mercia Debt Finance, which is managed by Mercia Debt as part of the Northern Powerhouse Investment Fund II (NPIF II).
Peach Hampers provides bespoke hampers branded with clients’ logos and includes products from local artisan producers. The business was started 12 years ago by freelance graphic designer Brendan Pallant in his spare bedroom. He now runs it with his wife Letitia from its premises on Hull’s Boulevard.
The NPIF II funding will give it additional capacity to meet the growing demand. A new mezzanine floor will double space in the warehouse, providing storage for 7,500 extra hampers which can be packed in advance and ready to ship during peak times. Meanwhile a new conveyor belt and pallet wrapping machine will allow it to pack an additional 720 hampers per day, almost double the current rate. The funding will also enable it to reduce costs by bulk buying supplies in advance.
Peach Hampers serves mainly corporate clients including many well-known names, and offers hampers ranging from £30 to £500, along with vegan, gluten-free and personalised options. The company, which delivers most of its orders in the run-up to Christmas, increased sales by around 20% during the 2024 festive period compared to the previous year.
Brendan Pallant, founder and Managing Director, said: “Hampers are a great way for companies to provide a thoughtful gift to staff or customers that requires minimal time and effort. We spotted a gap in the market for a supplier that could offer branding free of charge. Our business has gone from strength to strength but we have been missing out on valuable revenue during the peak Christmas period. The funding will enable us to overcome the constraints and move forward.”
Rebecca Pickering of Mercia Debt added: “Peach Hampers is a small, family-run firm that punches well above its weight and competes with big players in the market. The business has grown organically to this point. 2024 has been a transformational year and it is now ready to take on external funding to push it to the next stage. We are pleased to support Brendan and Letitia on their growth journey.”
Lizzy Upton, Senior Investment Manager at the British Business Bank, said: “The UK gifting market is robust and Peach Hampers are capitalising on the growth in this sector, using NPIF II funding to fuel its expansion and ultimately grow its capabilities, all from its base in Hull.”
Andrew Bradley of Humber Business Growth Hub provided business and fundraising advice to the company.
The £660m Northern Powerhouse Investment Fund II (NPIF II) covers the entire North of England and provides loans from £25k to £2m and equity investment up to £5m to help a range of small and medium sized businesses to start up, scale up or stay ahead.
The purpose of the Northern Powerhouse Investment Fund II is to drive sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses across the North of England. The Northern Powerhouse Investment Fund II will increase the supply and diversity of early-stage finance for the North’s smaller businesses, providing funds to firms that might otherwise not receive investment and help to break down barriers in access to finance.