Finsbury Food Group has acquired a majority stake in Lola’s Cupcakes, marking the manufacturer’s entry into the direct-to-consumer market.
The deal, details of which have not been disclosed, sees Finsbury take a 70% stake in the premium cupcake and celebration cake business. Lola’s will continue to be led by managing director Asher Budwig while benefitting from Finsbury’s manufacturing expertise, scale, and commercial reach.
Ranked in joint 47th position on British Baker’s Bakery Market Report 2025, Lola’s was founded in 2006 and currently operates a network of 45 kiosks and collection lockers in high-footfall locations including major London transport hubs. It generates annual revenues of £25 million and employs around 400 people, operating from its Park Royal facility in London. Around half of its sales come from e-commerce.
By adding direct to consumer capability to its portfolio, Finsbury said it broadens its routes to market, strengthens its position in the UK celebration cake and cupcake sector, and creates new opportunities for innovation and collaboration.
The acquisition is part of Finsbury’s long-term growth strategy which includes targeted investments in ‘innovative, high-growth segments’ of the bakery market. It follows the acquisition of Lees Foods in 2023, a sweet treat manufacturer based in Coatbridge, Scotland which specialises in meringue-based products such as snowballs.
Shortly before this, Finsbury approved a takeover which saw it move from public to private ownership as Isle Of Man-based asset manager DBay Advisors acquired the business for £143.4m.
Finsbury CEO John Duffy said the deal marks an “exciting milestone in the trajectory” of the manufacturer. “It represents another step forward in Finsbury’s acquisition journey as a buy-and-build business, allowing us to enter the direct-to-consumer market for the first time.
“Lola’s is an entrepreneurial and much-loved UK brand with a strong digital presence, and together, we see significant potential for growth and innovation across both Finsbury and Lola’s,” he added.
Lola’s managing director Asher Budwig said he has witnessed the “strength, breadth, and capabilities” of Finsbury first-hand.
“With Finsbury’s expertise in manufacturing, and the broader support of the Group, I’m confident we can take Lola’s to exciting new heights by building on what we’ve already achieved and exploring new opportunities together,” Budwig added.
It is the second major financial story today (15 August), following the announcement that Kingsmill owner ABF is to acquire Hovis.
No comments yet