The latest food and beverage industry news and trend analysis

Modern Milkman, the UK-based sustainable grocery delivery service, has successfully closed a £10 million investment round led by Salica Investments. This latest injection brings the company’s total funding to over £60 million, solidifying its status as a significant player in the rapidly scaling circular economy sector.

The transaction represents a notable milestone for the investor as well: Modern Milkman becomes the first direct-to-consumer (D2C) business to be included in Salica Investments’ Growth Debt Fund portfolio. This move signals strong institutional confidence in the company’s unit economics and scalable infrastructure.

From Grocery Delivery to ‘Integrated Logistics’

While the funding will support the continued expansion of the core doorstep delivery model, the company has outlined a broader strategic vision. The capital will be deployed to develop a "broader integrated logistics and services platform" for UK households.

By leveraging its established last-mile infrastructure, Modern Milkman plans to introduce new service layers designed to make sustainable consumption more accessible. This pivot suggests a move beyond pure-play grocery retail into a utility-style model for household management.

Simon Mellin, Founder and CEO, commented:

International Expansion and Operational Scale

Founded in 2019, the company now serves over 100,000 households across the UK. It operates a closed-loop delivery system, utilizing reusable glass bottles and returnable containers to minimize single-use plastic waste. The operation is underpinned by an app-driven ordering system and automated routing technology that optimizes supply chains and reduces food waste.

The business has also aggressively expanded beyond its domestic market. In January 2024, Modern Milkman entered the US market through a strategic acquisition, currently operating in:

• Connecticut

• Massachusetts

• Rhode Island

• Ohio

• New York

Investor Sentiment

Usman Ali, Partner in Salica’s Growth Debt Fund, highlighted the company's dual focus on sustainability and commercial strategy as a key driver for the deal.

“Modern Milkman is a business with exceptional leadership and a clear strategy,” said Ali. “Its commitment to sustainability and the circular economy creates long-term value while addressing global environmental challenges.”