Finsbury Food Group has acquired a 70% stake in Lola's Cupcakes (Holdings) Ltd, marking the UK speciality bakery manufacturer's first entry into the direct-to-consumer sector. The acquisition, announced on 15 August 2025, represents a strategic expansion for Finsbury as it diversifies beyond its traditional wholesale operations.

The Numbers Behind the Deal

Lola's operates as a premium cupcake and celebration cake business with annual revenues of £25 million and a workforce of approximately 400 employees. The company operates from its Park Royal facility in London and has built a dual-channel distribution model combining digital and physical touchpoints.

The business splits its sales roughly equally between e-commerce and physical locations, with around half of revenue generated through its online platform. Physical presence consists of 45 kiosks and collection lockers strategically positioned in high-footfall areas, particularly major London transport hubs.

Strategic Rationale

Asher Budwig, Managing Director, Lola's

This acquisition follows Finsbury's purchase of Lees Foods Ltd in 2023, demonstrating the company's continued buy-and-build strategy. For Finsbury, which traditionally supplies bread, cake and morning goods to retailers, foodservice operators and export customers across the UK and Europe, the deal opens new market channels and strengthens its position in the celebration cake segment.

It also allows Finsbury to leverage its manufacturing expertise and scale whilst gaining access to Lola's established digital capabilities and consumer brand recognition. Lola's will continue under the leadership of Managing Director Asher Budwig.

Market Context

The move comes as bakery manufacturers seek growth opportunities beyond traditional wholesale channels. Direct-to-consumer operations offer higher margins and closer customer relationships, though they require different operational capabilities including logistics, digital marketing and customer service functions.

Finsbury's expansion into this sector reflects broader industry trends towards omnichannel distribution and the growing importance of e-commerce in the bakery market, particularly for celebration and premium products.

Company Background

Finsbury Food Group transitioned from public to private ownership in 2023 when DBAY Advisors, an Isle of Man-based asset manager, acquired the business. The company has established itself as a significant player in the UK speciality bakery sector, with operations spanning multiple European markets.

Lola's has built its reputation in the premium segment of the celebration cake market, focusing on bespoke products and next-day delivery services for consumers seeking high-quality bakery items for special occasions.