IAG, which is spearheaded by md Calum Ryder, former Intersnack UK boss, said it aimed to use the cash to “enhance its manufacturing capability and product development”.
IAG has declared its ambition to become the first choice tortilla chips supplier to the UK grocery industry. Since its launch in 2012, funded by a syndicate of investors, it had invested in high quality production lines, the firm said.
It has subsequently invested in products targeting the own-label tortilla chip market. These include Mexican Dave’s Tortilla Chips and the Pitta Chip concept, which it claimed was “gaining momentum” as a Marks & Spencer branded product.
Recently-launched product
Another recently-launched product is its Manomasa premium tortilla chip brand, which had reached 350 independent retailers since its debut nine months ago, it said.
NVM backed the 1996 launch of north-east-England-based pretzel manufacturer Union Snacks. Ryder led that business as md and a founding director until Intersnack UK bought it in 2007, when Ryder became Intersnack UK md.
Ryder joined forces with IAG financial director Michael Weatherhead and IAG development director Lynn Saul to establish IAG in 2012 in the north east of England.
“Our strategy is to dominate the quality end of the own-label market and to build our Manomasa brand," said Ryder, in a statement about the deal.
Premium tortillas
“The new funding will help IAG to become the ‘go to’ manufacturer for premium tortillas and other snacks. I have personally known and worked with NVM for many years, so we both trust each other’s judgement.
“With committed investors behind us, and a strong management team on the front line, I am excited about the future of IAG.”
Mauro Biagioni, director of NVM Private Equity, added: “IAG ... operates in a growing and robust market and has begun to secure new business with major grocery multiples.
“We are delighted to be given the opportunity to back an experienced and highly capable management team, with an md we have supported in the past. We are very impressed with what they have achieved so far.”