Frugalpac begins equity fundraising to drive paper bottle expansion

Frugalpac, a UK-based paper packaging company, has launched an equity fundraising to raise up to £5 million (US$6.7 million) as it accelerates its international growth plans and develops new products, including a paper-based paint pot.

The company is raising the capital via crowdfunding platform Crowdcube. Ahead of the launch, Frugalpac secured £1 million (US$1.3 million) from existing and new investors.

According to Frugalpac, its flagship innovation, the Frugal Bottle, is made from 94% recycled paper and has a carbon footprint 84% lower than glass. The recyclable bottle is also five times lighter than traditional packaging. Since its debut, more than three million Frugal Bottles have been produced by over 50 brands across 128 different wines and spirits in 27 countries, saving more than 1,400 metric tons of CO2.

Malcolm Waugh, CEO at Frugalpac, says: “We’re offering a scalable alternative to glass that reduces emissions, supports circularity, and is already being embraced by the drinks industry. This crowdfunding allows eligible investors to back a proven technology at a crucial moment — and help us accelerate our impact around the world.”

Frugalpac says packaging companies from India, South Africa, and Europe are expressing interest in its product.“We’re not just building packaging — we’re building a better future for the planet. And the opportunity to join us in the next stage of our paper packaging revolution.”

Scaling tech

Major retailers, including Sainsbury’s, Aldi, Laithwaites, Ocado, Target, Whole Foods Market, and 7-Eleven, have stocked products packaged in Frugal Bottles.

The paper-based packaging company, which has raised £23.5 million (US$31.8 million) to date, generates revenue primarily by selling its proprietary Frugal Bottle Assembly Machines to packaging companies and contract bottlers. Frugalpac also benefits from recurring royalties on every bottle produced. 

Machines have been exported to the Monterey Wine Company in the US and KinsBrae Packaging in Canada, with another order from Australia’s Mother of Pearl Vodka. According to the company, a new high-speed model, FBAM2, is currently in development.

Frugalpac forecasts that deploying 22 machines by 2029 would capture 0.58% of the global wine and spirits bottle market — the equivalent of 191 million bottles annually — and generate around £51 million (US$69 million) in annual revenue.

The packaging provider has signed a development deal with a paint company to bring its new Frugal Paint Pot, a lightweight, recyclable paperboard pot, to market. The firm is also developing other products, including the Frugal Cup for takeaway beverages and Frugal Pots for food and fast-moving consumer goods.

Frugalpac projects revenues to rise from £2 million (US$2.7 million) in 2024 to £51 million (US$69 million) by 2029, with gross margins of 63% and pre-tax profits reaching £27 million (US$36.5 million). The company expects to be profitable from the second quarter of 2026.