Finsbury buys into Lola’s to push into direct‑to‑consumer retail

Finsbury Food Group has agreed to acquire a 70% stake in Lola’s, bringing the London-born cupcake brand and its digital-first platform into the group as part of a buy‑and‑build strategy under new private ownership. The deal — valuing Lola’s at around £30m in some reports and tapping into c.£25–26m of revenue — marks Finsbury’s first move into consumer-facing retail and signals further acquisitive expansion.

Finsbury Food Group has agreed to acquire a 70% stake in Lola’s, the London-born cupcake and celebration-cakes business, in a deal the buyer says marks its first foray into direct-to-consumer retail. According to the company announcement, the move brings an established digital-first brand into Finsbury’s broader bakery manufacturing group and forms part of a wider buy‑and‑build strategy under new private ownership.

The group said Lola’s generates around £25 million of annual revenues; independent reporting has put the business’s recent sales even higher, with one industry analysis noting more than £26 million of turnover in 2024 and a marked improvement in pre‑tax profits. Media reports differ slightly on the transaction’s headline value—city sources cited by Sky and other outlets suggested the deal values the business at roughly £30 million, while public statements from the parties emphasise the strategic rationale rather than confirming a precise price.

Lola’s operates a multi‑format estate centred on high‑footfall travel and shopping hubs: the business runs around 40–45 kiosks and collection lockers across major London transport stations, operates nationwide delivery from its ecommerce platform and even maintains an international franchise in Japan. The brand is reported to employ roughly 400 people and to have shifted significant volumes online in recent years, with ecommerce accounting for a material share of sales.

Finsbury’s chief executive, John Duffy, welcomed Lola’s into the group in the company statement, saying the acquisition is “an exciting milestone” for the buy‑and‑build strategy and will allow Finsbury to “enter the direct‑to‑consumer market for the first time.” Asher Budwig, Lola’s managing director, added in the same announcement that he was “thrilled to be working with the Finsbury team” and expressed confidence that Finsbury’s manufacturing and commercial capabilities could be used to scale the brand further. The parties have said Lola’s will continue to be led by its existing management team.

The transaction sits against a backdrop of corporate change at Finsbury itself. The group was taken private by DBAY Advisors following a recommended acquisition late in 2023, a move advisers said was intended to give management scope to pursue transformational M&A and international expansion without the constraints of public markets. Industry commentators frame the Lola’s deal as a logical extension of that strategy: buying a consumer‑facing brand with established retail sites and a digital platform complements Finsbury’s manufacturing footprint and customer list.

Financially, Lola’s has been on an upward trajectory under current management, according to market reporting earlier this year which highlighted growing sales and improved profitability as the business invested in ecommerce and travel‑hub locations. Management has flagged further rollout plans across the South East and beyond, underlining why an acquirer focused on scale and manufacturing synergies might find the brand attractive.

That opportunity comes with operational challenges. Converting a primarily wholesale and manufacturing group into an effective owner of consumer retail sites and online fulfilment requires integrating supply chains, balancing cost‑to‑serve for city kiosks and lockers, and protecting brand equity while pursuing expansion. Finsbury’s executives point to the group’s production strengths as the means to mitigate those risks, while Lola’s leadership stresses continuity of day‑to‑day operations.

As the parties move from announcement to integration, attention will centre on how quickly the combined group can translate complementary capabilities into growth at margin. For now, Finsbury has added a recognisable consumer brand to its portfolio and signalled that further acquisitions are likely to follow as it pursues the buy‑and‑build plan under private ownership.

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Source: Noah Wire Services

Noah Fact Check Pro

The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.

Freshness check

Score:
10

Notes:
The narrative is fresh, with the earliest known publication date being August 14, 2025, by Sky News. ([news.sky.com](https://news.sky.com/story/lola-s-cupcakes-bakes-30m-takeover-by-finsbury-food-13411626?utm_source=openai)) The report is not recycled or republished across low-quality sites. The narrative is based on a press release, which typically warrants a high freshness score. No discrepancies in figures, dates, or quotes were found. The article includes updated data and does not recycle older material.

Quotes check

Score:
10

Notes:
The direct quotes from John Duffy and Asher Budwig appear to be original, with no identical matches found in earlier material. No variations in quote wording were noted. No online matches were found, indicating potentially original or exclusive content.

Source reliability

Score:
9

Notes:
The narrative originates from reputable organisations: Sky News and The Grocer. The Grocer is a well-known UK trade publication, and Sky News is a major UK news outlet. The report mentions Finsbury Food Group and Lola’s Cupcakes, both of which have verifiable public presences. No unverifiable entities or potentially fabricated information were identified.

Plausability check

Score:
10

Notes:
The narrative’s claims are plausible and consistent with recent developments. The acquisition aligns with Finsbury Food Group’s strategic growth plans, as previously reported. The report includes supporting details from reputable outlets, such as Sky News and The Grocer. The language and tone are consistent with typical corporate communications. No excessive or off-topic details were noted.

Overall assessment

Verdict (FAIL, OPEN, PASS): PASS

Confidence (LOW, MEDIUM, HIGH): HIGH

Summary:
The narrative is fresh, original, and sourced from reputable organisations. The claims are plausible, supported by reputable outlets, and consistent with recent developments. No significant credibility risks were identified.