GLASGOW-based coffee roaster Matthew Algie has raised its annual pre-tax profits by 28% to £3.48 million and achieved higher turnover in a growing market-place.
The company, which is owned by German group Tchibo, attributed its growth to increased consumer demand for quality coffee. Its turnover rose by 9.6 per cent to £41m in 2017.
Matthew Algie, which employs about 235 people, supplies independent coffee shops as well as the Esquires and Soho chains. It also supplies Macdonald Hotels and other hospitality and restaurant businesses.
Andrew Jack, marketing and strategy director at Matthew Algie, noted the company’s biggest customer is Marks & Spencer, to which the Glasgow company supplies own-label coffee.
Matthew Algie, which owns the Tiki retail brand, noted “19 years of sustained growth” in the UK coffee-shop market.
Gross profit rose to £15.1m in 2017, from £13.3m in the prior year, in what Matthew Algie described as a “tough commercial environment”.
Mr Jack said that Matthew Algie sourced its coffee from “just about every coffee-producing area right round the world”.
He noted about 95% of all the coffee sold by the company was Fairtrade-certified.
Commenting on the coffee-shop market, Mr Jack said: “The total number of outlets and value of the market is going up. A lot of that is being driven by branded chains. Costa has just been sold to Coca-Cola – now they will have expansion in mind as well.
“I think for your average independent it is becoming trickier and trickier. A lot of our business is independent coffee shops – the ones that are doing really well and thriving are the ones that [are] differentiating.”
He declared that quality coffee, presentation and training were key to these efforts, noting these were areas in which Matthew Algie specialised.
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