MATTHEW Algie, which claims to be the UK's largest independent coffee roaster, has brewed up a 17% rise in operating profits, in spite of ongoing economic woes and consumer belt-tightening.
The Scottish company’s success is rooted in the notion that even in tough times, the thirst for small luxuries –whether a £2, £3, or £4 frappuccino, latte, macchiato or doppio espresso – has not been slaked.
Eric Hagman, the company’s chairman, enthused: “The out-of-home coffee market has remained relatively buoyant as consumers clearly remain determined to allow themselves their small luxuries.”
The historic, Glasgow-based coffee importer and roaster, which traces its roots back almost a century and a half, enjoyed a 12% rise in pre-tax profits to £1.9 million for the 2010 calendar year, compared with £1.7m the year before.
Turnover grew by 10% to £33.2m, compared with £30.2m.
However, at the operating level profits at the 147-year-old business, which includes sister company Espresso Warehouse, leaped by 17% to £2.1m from £1.8m in 2009.
The company, which has its headquarters in the Gorbals and attempts to keep politicians at Westminster and Holyrood alert and refreshed as it supplies coffee to the House of Commons and the Scottish Parliament, was founded by the great, great, great-grandfather of the late non-executive chairman David Williamson, who died after a “short illness” in 2008. Mr Hagman said: “To have driven double-digit growth in both turnover and profits was a significant achievement for the Matthew Algie business in 2010.
“This was achieved despite the ongoing economic difficulties and the pressures on consumers.”
He added: “Growth was shared between both large national and smaller independent accounts and we are confident that Matthew Algie’s ongoing focus on quality and helping our customers to offer their customers a great-tasting, fresh cup of coffee has helped them and us to succeed.”
The company’s success has come against an increase in coffee prices in 2010.
Meanwhile, poor harvests, particularly in Colombia, which have suppressed supply alongside strong demand in traditional markets and the rising popularity of coffee and cafe culture in emerging markets such as Brazil, India and China sent coffee bean prices to a near 34-year high this summer.
Mr Hagman added: “Continued commodity price pressure has made 2011 a challenging year for the industry as a whole, however Matthew Algie’s performance this year is holding up well compared to target.”
Matthew Algie, which roasted the UK’s first Fairtrade espresso beans in 1997, said that more than 80% of the green coffee that it buys is Fairtrade,
Most of its coffee is sold to top UK hotels, including Gleneagles, and it is a supplier to Marks & Spencer, Sainsbury and sandwich chain Pret-a-Manger.
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