Fiasco Gelato Cafés Ltd, based in Calgary, Alberta, is an artisan gelato manufacturer and wholesaler that has been in business since 2003. In 2015, the company—which prides itself on using quality ingredients and craftsmanship—opened its expanded retail and manufacturing location, The Fiasco Gelato Factory and Coffee Bar.
The company’s CEO, James Boettcher, was seeing significant growth and needed an initial tranche of funds to support the increased production levels required to build inventory and additional labour to stock more than 300 stores. A second and third tranche of funds were required to support continued growth with marketing, as well as additional manufacturing equipment to establish another production line.
BDC’s Growth & Transition Capital experts worked closely with the company to thoroughly assess its needs and find the right customized solution to fund its expansion across Canada. BDC provided quasi-equity financing, which is ideal for businesses that are reinvesting profits in their growth and are forecasting to generate strong cash flow in the near term. “Fiasco's expedited growth has meant we had to turn from bootstrapping to finding a capital partner that would appreciate our history and respect our commitment to doing business differently,” says Boettcher.
With the help of BDC financing, Fiasco Gelato Cafés Ltd. is well positioned to increase its production levels to build inventory in order to stock more than 300 stores. The company is stepping up its marketing efforts and will set up an additional production line to increase capacity. The company is on track to double its revenues and capacity. Over the last year, the business has already seen an increase in capacity from 60% to 80% and sales increase from 150% to 180%. “BDC came to the table with exactly what we needed and their team has immersed themselves in our culture,” he says.