“We have got a manufacturer in Holland working very closely with us,” Anthony Herbert, founder and ceo of the company told FoodManufacture.co.uk. “They are very responsive and work with a two-week-in-advance contract. We work with all the multiples in Europe.
“In year three we will probably build our own manufacturing plant. We would love to have a manufacturing plant in the UK, but another reason why we had to move manufacturing is because pricing was not competitive enough to sell into multiples in the UK.
“It comes down to the equipment the factory has and the cost. For the same price you can get a five-metre-long production line with three people on it in the UK or a 50–60m long line with 25 people working on it elsewhere in Europe. You can churn out five times as much on that line.”
Joint venture in United Arab Emirates
In addition to considering UK production in the longer term, Herbert said OkoBay, which has headquarters in New Barnet, Hertfordshire, wanted to expand into the United Arab Emirates (UAE). “We are looking at a joint venture in UAE – we have the capability to build a factory there.”
Herbert said the company, which launched ice lollies last year on a trial basis after receiving a seven-figure sum to boost scale and widen distribution, had received strong support from top supermarkets.
The feedback they had given him was that there was little real innovation in the ice cream category and that it needed a shake-up, he said. One supermarket buyer had told him one of its big aims for next year was to grow the dairy-free category. Coconut water ice lollies could be part of that, Herbert claimed.
‘Championing the dairy-free category’
“My goal within the next three years is to be championing the dairy-free category in the same way that Innocent championed the smoothies category.”
Tesco began stocking OkoBay Coconut Water Ice in stores from the beginning of March this year and Herbert is in discussions with retailers including Sainsbury, Morrisons and Waitrose. The product comes in two variants: original and pineapple flavour in single-serve impulse format and packs of three.
Herbert previously launched the Juice Doctor drinks brand in 2000. He and a friend, who was a film producer, noticed a recent surge in interest in coconut water and the success that some beverage brands had had in crossing over into the frozen sector. This had led to the launch of OkoBay Coconut Water Ice, he said.