God. Remember 2021? When we were all stuck at home scrolling through TikTok and suddenly everyone was obsessed with these little Japanese ice cream balls? Yeah, those were simpler times.
Little Moons - teh viral dessert sensation that had us all running to Tesco like possessed people - is now in serious hot water. They've just shuttered their fancy new Kettering factory and needed a £5 million bailout after breaking loan agreements. Not exactly the sweet success story they were hoping for.
When Your Business Plan Melts Faster Than Ice Cream
I actually visited their London production site back in 2022 for a food industry event. The place was buzzing with excitement about their expansion plans. Their head of operations couldn't stop talking about how the Kettering factory would revolutionize everything. "This is our future," he kept saying. Poor guy.
The Kettering facility only opened in early 2024 and was supposed to be their manufacturing crown jewel. The plan? Close down their two London factories in Park Royal and Wembley and consolidate everything in this shiny new hub.
Well... that didn't work out.
So what the heck happened?
Documents show Little Moons defaulted on loan terms last December after confirming they were closing the Kettering site in November. The company then scrambled to secure an additional £5 million from shareholders after renegotiating agreements.
Now they've abandoned the Kettering dream entirely and crawled back to their original London sites. Talk about an expensive mistake! My industry contact (who texted me last night with "told you so" energy) estimates they burned through at least £8M on the failed venture.
From TikTok Darling to Financial Headache
For anyone who somehow missed the phenomenon, Little Moons are these bite-sized ice cream balls wrapped in mochi dough (a Japanese rice cake thing). They absolutely exploded in popularity around three years ago when the #littlemoons hashtag went viral on TikTok with millions of views.
I'll admit it - I spent about $40 trying every flavor I could find. The passion fruit one was worth every penny.
But apparently the honeymoon phase is over. Their latest accounts show total sales hit £53 million in the year to December 2023, down from £64 million the previous 18 months. And sales across the UK and Europe dropped from £60 million to £46 million in 2023.
Workers left in the cold
The company hasn't confirmed exactly how many employees will lose their jobs, but according to the Northamptonshire Telegraph, up to 200 positions are at risk. That's 200 families facing uncertainty because someone somewhere made some really bad decisions.
My cousin works in food manufacturing (not at Little Moons) and says the industry is absolutely brutal right now with rising costs. "Everyone's trying to do more with less," she told me over dinner last weekend. "But closing a brand new factory? That's next-level trouble."
The CEO's optimistic spin...
Little Moons CEO Joanna Allen told The Grocer that despite everything, the company is still growing. She acknowledged they made the "difficult decision" to close the Kettering branch at the end of 2024.
She claimed: "Looking forward, the business is on solid footing to continue blazing a trail for frozen snacking."
Allen added they're "investing in marketing in the UK, Germany, France, Australia and beyond in 2025."
Listen. I've been covering food industry news long enough to recognize when someone's putting sprinkles on a melting disaster. Those marketing investments better work miracles.
Where can you still find them?
If you're still craving these little ice cream balls (and honestly, they ARE delicious), you can grab them at M&S and Sainsbury's. They're also stocked at Asda, Morrisons, Tesco and Waitrose.
A box costs between £3.50 and £5 depending on where you shop. You get six in a box, with flavors ranging from passion fruit and mango to Belgian chocolate and Madagascan vanilla. Some flavors are even vegan-friendly, adn they're all gluten-free.
I'm actually curious if they'll start discounting soon to move product. Might be worth checking the freezer aisle next time you're shopping... assuming they can keep the lights on.
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