South West Deals, Manufacturing Stephen Farrell

A Dorset company that has created a subscription service delivering cider from independent producers to customers' doors is set to launch a new wholesale business after smashing its £100,000 funding target on Crowdcube.

Bridport-based Crafty Nectar launched its campaign on the crowdfunding platform last week, targeting £100,000 of funding, with a 16.54 per cent equity stake offered to investors.

It has already exceeded the initial target with about £120,000 so far pledged from more than 200 investors.

Crafty Nectar chief executive Ed Calvert founded the business with chief technology officer/chief marketing officer James Waddington.

He told Insider: "I went to a rugby match with James; we had a few ciders and were discussing the rise of beer clubs. We realised that there was nobody doing them for ciders. James bought the Crafty Nectar domain and it's all spiralled from there.

"We've managed to do it all on a shoestring basis so far. I was working full time in London and James has his own business.

"We've discovered a lot along the way. People tend to tarnish all cider with the same brush. It's not all farmhouse cider.

"It is a more scientific process than beer, it's more like wine. Counties all make it differently as well. There's a huge amount of variety out there."

Crafty Nectar is forecasting revenue for its subscription service of £85,777 for the year ending November 2017, rising to £376,984 the following year.

The Crowdcube funding will enable the company to branch out into the wholesale market for its ciders.

Calvert said: "We started out with the subscription service but as we began going to trade shows we were approached by pub landlords asking us about wholesaling ciders.

"We devised a plan to try and change the landscape for the wholesale of cider. It allows pubs to get relatively small amounts of cider but a wider variety. The Crowdcube investment is about developing that platform.

"We've made the decision to grow the subscription element more slowly but some money will also go into it as well.

"The bulk will go on employing sales staff and getting our ciders into pubs and restaurants."

The business had previously predominately been funded by the founders and the new investment will support the launch of the wholesale operation.

"We were given money from a family friend and that allowed us to focus on the campaign," Calvert said.

"I would say venture capital (VC) investors are much harder to find. Because we didn't have everything aligned that they want it made it difficult for us to go down that route. Crowdcube came to our rescue."