GLASGOW-based coffee roaster Matthew Algie has achieved a modest rise in profits, in what it described as a “fiercely competitive” market.
It cited increased demand from restaurants, hotels, coffee shops and universities.
Matthew Algie, which was bought by family-owned German company Tchibo Coffee Service last year and serves the UK and Republic of Ireland, reported a 3.9 per cent rise in turnover from Pounds 36 million in 2015 to Pounds 37.4m last year.
The company, which cited increased prices for raw coffee and imported coffee machine spare parts on the back of sterling’s weakness, posted operating profits of Pounds 2.65m for 2016, up slightly from Pounds 2.58m in the prior 12 months. The pound tumbled in the wake of the Brexit vote in June last year. Pre-tax profits rose from Pounds 2.58m to Pounds 2.72m.
Matthew Algie observed the UK coffee shop market continued to enjoy steady growth. It cited the Project Cafe2017 UK report from Allegra World Coffee Portal, showing the total number of outlets in the UK increased by about six per cent last year.
According to the report, annual turnover of the UK coffee shop market rose by 12 per cent to Pounds 8.9 billion in 2016.
Matthew Algie also cited projections in the report that the number of coffee shops in the UK would surpass the number of pubs by 2030.
Nick Snow, managing director of Matthew Algie, said: “Coffee outlets face fierce competition on the high street and, as consumer expectations increase, so must the quality and standard of the coffee on offer.”
He added: “In today’s market, differentiation is everything. As well as taste acting as a measure of quality, consumers see provenance, ethics and sustainability as important. Our ethical values are central to our business and we are proud to supply coffee to our customers that meets this level of expectation.”
Mr Snow observed Matthew Algie had “once again been able to grow” its overall market share.
He flagged plans to continue to invest in the Matthew Algie business, noting expenditure on a major new warehousing facility at its Glasgow site to cope with the expansion.
Mr Snow added: “Through contract catering, our distribution has broken into some new areas including some major UK universities.”
Credit: Ian McConnell
(Copyright (c) 2017 Newsquest Media Group)