Ryder formed Black Grape in 1993, recruiting ex-Happy Monday Bez (dancing, percussion), rappers Kermit (born Paul Leveridge) and Jed from the Ruthless Rap Assassins, and ex-Paris Angels guitarist Wags. Black Grape began recording demos only weeks after the implosion of Happy Mondays. Over the course of recording and writing It's Great When You're Straight...Yeah, Ryder recruited a number of musicians, most notably producer and bassist Danny Saber, keyboardist/producer Stephen Lironi, and former Bluebells and Smiths guitarist Gary Gannon. Black Grape's debut album was recorded over a period of seven weeks in late 1994 and early 1995; after it was completed, the band signed with Radioactive Records. The group's first single, "Reverend Black Grape," entered the Top Ten upon its release. The group's debut album, It's Great When You're Straight...Yeah, was released in August of 1995. The album entered the U.K. charts at number one.

"In the Name of the Father" and "Kelly's Heroes" followed "Reverend Black Grape" into the Top 20 later in 1995. Toward the end of the year, Kermit suffered a severe case of septicemia, a form of blood poisoning caused by bad water he drank while in Mexico; although he came close to death -- bits of his heart and liver were flaking off -- he had recovered by the spring of 1996. Black Grape were prepared to head to America early in 1996 when the group was denied entry into the country due to its members' prior drug convictions. After a couple of months, the passports were cleared and the band was admitted into the U.S. Due to his illness, Kermit had to miss the tour, and his spot was filled by Psycho, who became a permanent member of the band after the completion of the tour. Before Black Grape launched their U.S. tour in spring of 1996, Bez left the band due to financial disagreements with the record company.

In May 1996, Black Grape returned with the single "Fat Neck," which entered the U.K. charts in the Top Ten; the song featured former Smiths member Johnny Marr on guitar. A month after the release of "Fat Neck," the group released its football anthem "England's Irie," which was recorded with Joe Strummer. Like "Fat Neck" before it, "England's Irie" became a Top Ten hit. Stupid, Stupid, Stupid followed in 1997.