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The Marshmallowist toasts to £70,000 investment to expand production

Press release 06 February 2025

A West Yorkshire-based confectionery business has secured £70,000 from NPIF II – BEF Smaller Loans, which is managed by Business Enterprise Fund (BEF) as part of the Northern Powerhouse Investment Fund II (NPIF II).

Lady making marshmallows at the marshmallowist

A West Yorkshire-based confectionery business has secured £70,000 from NPIF II – BEF Smaller Loans, which is managed by Business Enterprise Fund (BEF) as part of the Northern Powerhouse Investment Fund II (NPIF II).

The funding also came from BEF’s Community Investment Enterprise Fund 2 (CIEF2) backed by Lloyds Bank and Better Society Capital. This funding will play a crucial role in expanding the company’s operations and enhancing its commitment to crafting innovative, gourmet marshmallows.

The investment will establish a new bakery facility, significantly boosting production capacity to meet the demands of the new contract. This expansion will create five new jobs and secure seven existing positions at the Leeds site, driving local economic growth.

Founded by renowned chocolatier Oonagh Simms in 2011, The Marshmallowist pioneered the UK’s gourmet marshmallow market. Combining traditional confectionery techniques with bold flavours, the brand uses premium ingredients like fresh fruits, organic herbs, fair-trade sugar, and boutique alcohols. All products are egg-free, dairy-free, and gluten-free, catering to diverse dietary preferences.

Oonagh's journey began at 18 when she moved to Paris to train as a pâtissier and chocolatier. Four years later, she returned to the UK to launch The Marshmallowist from a stall at Portobello Road Market, reinventing the classic treat with a gourmet twist. In 2014, her sister Jenny joined as a director, bringing expertise in brand development and strategy. Together, they transformed The Marshmallowist, blending culinary artistry with savvy business tactics, and securing its place in luxury retailers like Selfridges and Harvey Nichols.

After securing a key contract with a growing chocolate brand, the sisters set their sights on upgrading their production facility at Springfield Mills in Farsley, Leeds. They were introduced to BEF by David Baggaley, a Business Advisor at Leeds City Council, who played a crucial role in securing the funding and grants for their expansion.

Oonagh Simms, chocolatier and director at The Marshmallowist said:

This investment marks a significant milestone for us. With the new bakery facility, we can expand our production to meet the growing demand and continue pushing the boundaries of what a gourmet marshmallow can be. We're thrilled to take this next step in our journey and bring more of our innovative flavours to our customers. It's not just about growth; it's about keeping our passion for quality and creativity at the heart of everything we do.

Doug Heseltine, Senior Investment Manager at BEF said:

The Marshmallowist is a fantastic example of a business that combines creativity with a clear growth strategy. We're proud to support Oonagh and Jenny as they expand their operations and take on exciting new opportunities. This investment not only helps scale their production but also contributes to job creation and economic growth in the region, which aligns perfectly with our mission and the goals of the Northern Powerhouse Investment Fund II.

Lizzy Upton, Senior Manager at British Business Bank, said:

Small businesses are critical in promoting and driving growth into local regions, especially ones like The Marshmallowist which is providing a fantastic offering to its customers while also creating and securing jobs. These kinds of businesses can benefit greatly from access to finance, and this loan will certainly accelerate the team forward in achieving their growth ambitions.

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.

BEF specialises in delivering smaller loans between £25,000 and £100,000 to businesses in Yorkshire and Humberside. Committed to breaking down barriers to finance, BEF ensures SMEs across diverse industries receive the support they need to thrive.

Further Information

If you are a journalist and have a media enquiry, please contact [email protected].

Notes to editors

About the Northern Powerhouse Investment Fund II

  • Operated by the British Business Bank, NPIF II provides a mix of debt and equity funding. NPIF II will offer a range of commercial finance options with smaller loans from £25k to £100k, debt finance from £100k to £2m and equity investment up to £5 million. It works alongside the Combined Authorities, Local Enterprise Partnerships (LEPs), and Growth Hubs, as well as local intermediaries such as accountants, fund managers and banks, to support the North’s smaller businesses at all stages of their development.
  • The funds in which the NPIF II invests are open to businesses with material operations, or planning to open material operations, in: Greater Manchester, Lancashire, Cheshire & Warrington, Cumbria, Liverpool City Region, Leeds City Region, South Yorkshire Combined Mayoral Authority, York & North Yorkshire, Humber and East Yorkshire, Northumberland, County Durham, Tyne & Wear 
  • Supported by Nations and Regions Investments Limited, a subsidiary of British Business Bank plc, the Bank is a development bank wholly owned by HM Government. Neither Nations and Regions Investments Limited nor British Business Bank plc are authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA).

Northern Powerhouse Investment Fund II

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