S‑UBG Group invests in Springlane
Aachen/Düsseldorf — The S‑UBG Group invests from its SME fund S‑UBG AG in the fully integrated digital brand manufacturer of cooking and grilling products Springlane GmbH from Düsseldorf.
Since its founding seven years ago, Springlane has focused on the trend toward conscious and quality cooking. With high-quality content about cooking, baking and grilling, the online and social media specialist built up a foodie community that is millions strong. The close exchange in this community now enables the company to develop tailor-made cooking and grilling products for its target group. Under the Springlane and Burnhard brands, Springlane has been offering its own products such as ice machines, high-performance blenders, pots, pans, dishes, pizza ovens, grills and selected accessories for two years.
Change of business model generates new growth opportunities
Until the beginning of 2018, the company operated an online retailer with more than 20,000 products from renowned third-party brands at last count. “Our deep understanding of the industry and customers enables us not only to develop our own products and brands, but also to distribute them effectively and efficiently. This is the logical evolution of the business model,” explains founder and CEO Marius Fritzsche. In April 2018, Springlane switched completely to its own products; four months later, the lack of sales from third-party brands had already been fully compensated; in April 2019, the company generated a profit for the first time. This success not only creates confidence, but also new opportunities for growth, so that today existing shareholders and new investors are investing a total of ten million euros in Springlane. “We will use the capital to expand new business areas and drive innovation,” Fritzsche says.
No middleman, but full added value
Sales are made directly to customers in a controlled manner via the company’s own web stores and via marketplaces in Germany, Austria, Switzerland, Italy, France, Spain, the Netherlands and the United Kingdom. Since last year, Springlane has also been running an agency and media business for food manufacturers who want to build a digital positioning or strengthen their reach. Conception, creation, production and distribution are all done from a single source.
Content instead of marketing
With its new business model, Springlane addresses the generation of digital natives and accompanies them both before and after a purchase. Several million times a day, potential customers look at the self-produced recipes and cooking instructions online. About half of all users of their own food blog return regularly.
“Springlane has created the basis to grow profitably in an exciting market with convincing products and the successful transformation to a direct sales approach with its own products,” said Bernhard Kugel, CEO of S‑UBG Group. “In addition, we have come to know Marius Fritzsche as a strong entrepreneur who, together with his dynamic team, is consistently driving the development of the business” adds Günther Bogenrieder, who oversees the company as an investment manager on the part of S‑UBG.
About the S‑UBG Group
The S‑UBG Group, Aachen, has been the leading partner for over 30 years in the provision of
Equity capital for established medium-sized companies (S‑UBG AG) and young, technology-oriented start-ups (S‑VC GmbH) in the economic regions of Aachen, Krefeld and Mönchengladbach. S‑UBG AG invests in growth sectors; high quality of corporate management is a key investment criterion for the investment company. In 1997, the shareholder savings banks established an early-stage fund under S‑VC GmbH to finance startups.
In 2018, together with Sparkasse Aachen, Kreissparkasse Heinsberg, Stadtsparkasse Mönchengladbach, NRW.BANK and DSA Invest GmbH, Seed Fonds III für die Region Aachen & Mönchengladbach GmbH & Co. KG was launched, providing around 21.5 million euros in seed capital for the start-up scene in the region. As the successor to the two fully financed seed funds, it stimulates the development of future-oriented technologies in the Aachen economic region and was extended to the Mönchengladbach region in 2018. The S‑UBG Group currently holds stakes in over 40 companies in the region, giving it a top position in the Sparkassen-Finanz Group. www.s‑ubg.de; www.seedfonds-aachen.de