Investment & Fund Management

Juvinum, a family-run business based in Stockholm, faced significant challenges during the COVID-19 crisis, particularly due to its reliance on the HORECA sector (hotels, restaurants, and catering), which was severely impacted. Sales plummeted to nearly zero for several months, with 2020 sales dropping to less than half of a normal year, and only a marginal improvement in 2021. The company, which specializes in the wholesale of cooking wines, typically shipped around 130 containers annually but managed to ship only 58 in 2020. Additionally, they encountered transport disruptions, including difficulties in securing containers and trucks, leading to delays and increased costs.

To navigate these turbulent times, Juvinum's owners, Carl-Viggo and Caroline Östlund, implemented two liquidity plans to manage cash flow effectively. They were determined to avoid laying off their two employees in the UK and sought financial support through a loan from DBT, guaranteed by the EIF under the pan-European Guarantee Fund. This loan provided the necessary cash flow to maintain operations and meet financial obligations.

As a result of these efforts, Juvinum has successfully returned to pre-pandemic sales levels. However, the owners remain cautious, acknowledging the ongoing uncertainties in the business environment. Their proactive approach to financial management and commitment to their workforce have been crucial in weathering the storm and ensuring the company's survival and recovery.