EPE Special Opportunities pours £2m into dog snack brand Denzel's

The AIM-traded firm described Denzel's as a fast-growing, “healthy and sustainable” premium dog snacks brand, with products made in the UK and Ireland using “entirely natural” ingredients and 100% plastic-free packaging.

Denzel's operates an omni-channel distribution strategy, underpinned by listings in retailers including Tesco, Sainsbury's, Asda, Wilko, Spar and, most recently, Waitrose.

It said Denzel's was part of the current cohort of the Tesco incubator programme, which helps to accelerate brands using Tesco's retail infrastructure.

“ESO intends to work closely with Denzel's to help deliver its growth strategy, which is focussed on the launch of new products, notably high value and functional dog treats, as well as growth of both offline and online distribution channels,” the board said in its statement.

The £2m investment was part of a £3m growth capital raise by Denzel's, in which ESO 1 was the lead investor.

It said the investment was funded by cash reserves advanced from ESO, adding that following the investment, ESO had available cash of £21.8m, with the investment having “no impact” on the company's net asset value.

“The investment in Denzel's is consistent with ESO's focus on investing into small and medium sized enterprises, partnering with management teams to create value through long-term business transformation.”

Reporting by Josh White at Sharecast.com.