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Sweet treat for cereal café after receiving first NPIF II deal in Greater Manchester

Press release 24 September 2024

Portrait of the team from Black Milk Cafe

Popular Manchester café, Black Milk, has secured a loan from the Northern Powerhouse Investment Fund II (NPIF II), following the launch of the Fund earlier this year. The deal is also the first for NPIF II in Greater Manchester.

The funding comes from NPIF II – GC Business Finance and River Capital Smaller Loans and will support Black Milk in the next stage of its growth. Founded by Oliver Taylor nine years ago, Black Milk started out as a milkshake and cereal café, selling baked goods, and has since expanded its product offering to include pancakes, gelato and more.

It also has an online shop, where it stocks spreads and granolas, which are also used in the products made in store. Oliver previously worked in French and Argentinian restaurants and believed the incredible desserts, sauces and ice creams could become front and centre of his new concept, Black Milk.

The funding will support Black Milk in bolstering its growth plans following an influx of enquiries from high-street shops such as Co-op, Booths, Selfridges, Delli, Modern Milkman, Amazon, Tesco and more for its spreads and granolas. It will provide the crucial capital needed to purchase and supply stock to fulfil the orders placed by retailers.

The funding will also support the business in securing new brand collaborations. In April, it partnered with the English Cheesecake Company, to produce a vanilla and hazelnut cheesecake, with the product stocked in 750 stores. Black Milk also partners with Yockenthwaite Farm in Skipton, which supplies the café with its famous granola for its granola-based products.

Black Milk also boasts award-winning products, with its pistachio cream winning a double gold star from Great Taste Award, and its hazelnut cream boasting a single star Great Taste Award. The café’s spreads are inspired by Amalfi, Italy, after Oliver sampled many hazelnut and pistachio gelatos on a research trip, with Black Milk sourcing its hazelnuts from Piedmont and pistachios from Sicily and California.

Most recently, Black Milk’s spreads launched in Selfridges, with the product proving so popular, the global department store has already placed another order.

Oliver Taylor, founder of Black Milk, said:

We set up Black Milk almost a decade ago from humble roots. I grew up on a council estate, and the NPIF II funding has been crucial in providing support to get to where we are today – we wouldn’t have been able to achieve what we have without it. We wouldn’t have been able to stock shelves in Selfridges or create a cereal in partnership with other brilliant brands without the funding so we’re really grateful to NPIF II for supporting us as we grow. We are now able to give back, and support some brilliant local charities, such as Mad Dog Street Project and Mustard Tree.

Alison Darkes, Investment Manager at GC Business Finance, said:

It has been a delight to work with Oliver and Andy to provide the first NPIF II loan in Greater Manchester. They are such lovely, passionate people to work with, and the success they have achieved so far is admirable. Not only are the team working with on some brilliant collaborations, with some well-loved local businesses, but they’re also giving back to the local community through the work they are doing with charities within the community. One of my favourite things about Black Milk Café is their pistachio cream, which is delicious!

Sue Barnard, Senior Manager at British Business Bank, said:

Dessert bars have seen a peaked interest in recent years, with customers flocking to these kinds of venues to try the varied products on offer. Oliver and Andy have done a brilliant job of building a successful café, working with other local suppliers and partnering with some big names at the same time. This is a really exciting first deal for Greater Manchester, and highlights how NPIF II can support founders across the region to achieve their dreams.

The £660m Northern Powerhouse Investment Fund II (NPIFII) 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.

Further Information

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Notes to editors

About the Northern Powerhouse Investment Fund II

  • Operated by the British Business Bank, the Northern Powerhouse Investment Fund II (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: Cheshire, Cumbria, Greater Manchester, Lancashire, Merseyside, City of Kingston upon Hull, East Riding of Yorkshire, North Yorkshire, South Yorkshire, West Yorkshire, Hartlepool and Stockton-on-Tees, South Teesside, Darlington, Durham, Northumberland, Tyneside, Sunderland. 
  • Smaller Loans from £25,000 to £100,000 – GC Business Finance & River Capital (North West), Business Enterprise Fund (BEF) (Yorkshire and Humber) and NEL Fund Managers (North East)
  • Business Loans from £100,000 to £2m – FW Capital (North West), Mercia (Yorkshire and Humber) and NEL Fund Managers (North East)
  • Equity Finance up to £5m – Prateura Ventures (North West), Mercia (Yorkshire and Humber), and Maven Capital Partners (North East) 

Applications for funding are made directly to the relevant fund managers who can be contacted via the NPIF II webpages.

About GC Business Finance

GC Business Finance (‘GCBF’) is a responsible lender. It exists to give small businesses and entrepreneurs the confidence to be successful in their growth journeys.

By offering loans to start-ups and early stage businesses, it is committed to helping companies become ready for mainstream lending.

The organisation is powered by a unique technology platform, but has a team of financial experts on the ground who are immersed within the local small business eco-systems. Our team helps entrepreneurs navigate the financial landscape, and supports right kind of finance for growth.

GC Business Finance offers loans from £500 to £300,000 to businesses looking to start up, grow or expand overseas.

For more information, visit the GC Business Finance Start Up Lending website.  

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