A Greater Manchester independent drinks firm, which supplies wines to retailers such as Co-op, Waitrose, Ocado, Majestic, Sainsbury’s and Morrison’s, has become partially employee owned.
Irlam-based Kingsland Drinks Group, including Kingsland Drinks and newly-established Ten Locks, has been managed by current director shareholders Andy Sagar, Karen Wilson, Michael Forde and Mark Dixon for 17 years.
The owners have now agreed that the time is now right to restructure the ownership model while recognising any changes in the stewardship of the business will need support and take time to transition.
After reviewing all the potential options, the shareholders concluded the best outcome was to sell a majority of the shareholding into an Employee Ownership Trust (EOT) structure.
The shareholders will remain active in the business as executive members of the board and will retain an equity interest while moving the majority - 51% - of the company into the EOT, giving employees indirect ownership status.
The remaining 49% will continue to be held by the owners. There will be a board of trustees, consisting of one external independent trustee, two founder trustees and two employee trustees, charged with looking after the best interests of the co-owners of the company.
The company has also agreed new funding facilities in conjunction with its existing provider, NatWest, and a new partner, Wells Fargo.
This provides the business with additional funding headroom and the capability to plan for future growth with its stakeholders.
The move comes after accounts filed with Companies House earlier this month, for the 12 months to June 30, 2020, revealed the group's turnover increased to £297.8m while its pre-tax profits totalled £2.7m.
Andy Sagar, executive chairman and shareholder, said: "The four shareholders have put a great deal of thought into the succession of Kingsland Drinks Group as we have a strong legacy of partnership and a family ethic.
"We have always put employees at the heart of our business and the move to EOT allows our colleagues to feel even more connected to the company, and take pride in building for the future, having a real stake in the success of the business."
Ian Hiscock, new chair of the trust board, added: "I am thrilled to be joining the team at Kingsland Drinks Group as they embark on their employee ownership journey.
"Having spent my whole career working in and around EO businesses, I’m passionate about the benefits it can bring to a company and the people who make it a success: the employees.
