Promotional pressure has forced chilli sauce brand Trees Can’t Dance to close.
The founder of the eight-year-old business said it had become impossible to secure long-term stability, despite enormous brand loyalty.
“We’ve taken the brand a long way in a few years, trebling the size of the company in 18 months, but it’s become increasingly obvious that we couldn’t get the growth and return from investment,” said Dan May, creator of the Northumberland-based brand. “Things sell on promotion but you rarely make money. People will go for the best deal and there is always someone in the position to charge less.”
In addition, some multiples didn’t appreciate the long lead times small producers needed to increase production or the cost implication when demands changed at short notice, he added.
“Some supermarkets are excellent and understand the nature of dealing with smaller companies, but others don’t,” he said.
May added that selling up had not been an option. “There was no-one who could take Trees Can’t Dance on and keep it true to its roots, and we didn’t want to prostitute the brand we’ve created and lose its integrity.”
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