London-based Mr. Lemonade, which supplies craft drinks and snacks to restaurants, retailers and hospitality businesses was started by Karol and Thaiz Chamera, who were passionate about bringing healthy, mission-driven beverage brands to businesses and consumers.
In just eight years, they’ve managed to scale Mr. Lemonade into a thriving business with nearly 30 employees.
A series of recent investments in technology – including using AI to automate some of the most tedious, back-office tasks – has helped them grow their turnover by 70% in the last year, expand to a third warehouse and gear up for national distribution.
Karol Chamera, Founder, Mr. Lemonade, tells Wholesale Manager some of the biggest challenges he has faced in eight years of wholesaling and his goals for what he wants to achieve with the business.
Can you tell us a little of the history of your company?
My wife, Thaiz, and I started Mr. Lemonade out of a council garage in East London in 2016 with just £2000 in cash and two SKUs. We were both working other jobs at the time – I was in banking, Thaiz was in hospitality – and Mr. Lemonade was something we did on the side as a passion project for the first few years. We were self-funded industry outsiders who were totally self taught. But we were really passionate about bringing boutique, lesser-known and specialty beverage brands to retailers and consumers in the UK.
Over time we grew our product catalogue from small and local producers to big name brands that were already smashing on the market. Eventually the council garage couldn’t handle the volume and we started to store our inventory in a container and then ultimately in our first warehouse. Leasing that warehouse was a huge leap of faith for us, and in hindsight, a big milestone in the evolution of Mr. Lemonade!
The business was finally successful enough in 2018 for us to quit our jobs and work on it full time. However, not long after that, COVID hit and our business slowed down significantly overnight. Like many food service businesses, it was a difficult time for us, but we made it through and in 2021, we expanded into Packaging Services. The last few years have really been about investment in technology for us. We’re using a platform called Choco AI, which has enabled us to automate much of our order management—a role that was both tedious and difficult to recruit for at a time when hiring is a massive pain point in our industry.
Today, I’m feeling more optimistic than ever about the business going into 2025. We’ve grown the team to nearly 30 employees serving hundreds of customers and we’ve also recently expanded into international distribution across the UK. The future looks very bright for Mr. Lemonade!
What made you want to get into wholesaling?
Initially, we saw a gap in the market for specialty beverage brands and we were excited about the idea to bring those to businesses and consumers across the UK. Today, we stock not only smaller, niche brands, but also bigger brands that are gaining in popularity, like Oatly and Fever Tree. Whenever possible, we try to stock brands that are making a difference in their community. We’ve also expanded our product line beyond beverages to snacks, but our commitment to highlighting quality has remained the same.
What are some of the biggest challenges you have faced in eight years of wholesaling?
Striking the right balance between expanding into new space without over-extending ourselves financially has been an ongoing challenge. This business requires a lot of space to stock products, but as a self-funded small business, we’re always cautious about taking on more than we can handle. Heading into 2020, we had just signed a lease on our second warehouse when COVID struck and wiped out a lot of our business overnight. We bounced back, but it was a scary time for us.
We recently started using a new feature from Choco called Instant Pay that has been a game changer for us in this regard and has made our cash flow much more reliable so that we can invest that money back into the business. Instant Pay pays us upfront on a weekly basis for the value of all invoices sent the previous week, regardless of the payment terms and regardless of whether the customer pays. One of the most stressful parts of this business is chasing down payments from customers and then still having to pay out our suppliers, so the impact of not having to wait for weeks to collect payment on open invoices has been massive. We’ve been able to re-invest that money in the business and add two new warehouses without a lot of the anxiety we had when we previously expanded into new space.
What are your goals for what you want to achieve with the business?
Our biggest goal is to continue to scale – more staff, more vehicles, more customers. Starting in 2025, we really want to add more multi-site location customers. My hope is for Mr. Lemonade to become a very recognisable brand.
How is your company performing?
We’re very happy with how the company is currently performing. Right now, we’re serving an average of 500-600 customers each week. AI has been a big part of how Mr. Lemonade has been able to grow. By using AI tools, we’ve streamlined operations, reduced costs, and seen significant growth in revenue. We hit a 70% improvement at the end of 2024.
Are you a member of a buying group? What benefits do you get from being a member?
We are not part of a buying group.
How far is the geographical reach of your business?
We deliver to everywhere in the UK within 24 hours.
Do you have an e-commerce site for your customers?
Yes! Our entire catalogue can be accessed via the “shop” tab on our website. We also have a detailed product catalogue on our website as well.
How digital is your business, and do you offer any IT support for your members e.g. ordering apps, online support, delivery tracking?
Our business is fully IT-operated to ensure efficiency and convenience for our customers. Orders can be placed through Choco, our dedicated app, or our web shop. Additionally, customers receive delivery notifications to keep them updated throughout the process. We aim to provide seamless digital support for all our clients.
How many products does your business supply and what categories do you cover?
We supply more than 850 products across a wide range of categories, including soft drinks, alcohol, snacks, packaging, cleaning supplies, dairy milk, alternative milks, powders, teas, and even fresh sandwiches. Our diverse product range ensures we meet the varied needs of our customers.
Are there any new products in the ranges you want to talk about?
Yes, we are seeing a shift in customer behaviour towards innovative and unique products, especially from the EU. Buyers are increasingly looking for something special to differentiate themselves. For example, within oat milk, we’re seeing that the Unordinary oat milk is gaining attention for its quality and uniqueness. Within crisps, brands like Sarriegui are emerging as premium alternatives, overtaking popular names like Torres. In general, customers are prioritising quality over price, opting for products that stand out and offer a premium experience. We’re excited to explore these trends further and bring more innovative offerings to our range.
How has the wholesale industry changed in recent years?
The wholesale industry has seen significant changes in recent years, and while we are still relatively new to the game—operating as a wholesale supplier for 8 years—we’ve observed key trends.
Many brands come and go, highlighting how critical it is to stay adaptable. Customer loyalty is increasingly tied to quality products rather than pricing alone. As a result, we’ve shifted our focus towards investing in premium and less mainstream brands to meet the evolving needs of our customers and ensure they find what they’re looking for with us.
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