The Ottawa-based coffee chain has credited wider supermarket distribution for sustained wholesale growth in 2023, with its 22 outlets also performing strongly during the third quarter
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A Bridgehead coffee shop in Ottawa, Canada | Photo credit: Matti Blume CC BY-SA 4.0
Canada’s Bridgehead Coffee has posted robust third quarter sales, with strong revenues from stores and its wholesale channel contributing to parent company Aegis Brands’ return to profitability.
Bridgehead Coffee’s total sales during the three months ended 24 September 2023 grew 21.5% to CA$4.1m ($3m). Revenues from its 22 outlets increased 18% to CA$3.5m ($2.5m), while its wholesale channel achieved 48% sales growth to reach CA$426,000 ($308,000) following expanded supermarket distribution. However, the coffee chain’s e-commerce sales fell 12% to CA$118,000 ($85,000).
Bridgehead Coffee opened its first licensed location during the quarter at Ottawa Airport in July 2023 and reported early results as ‘promising’.
“We have been more creative in our post-pandemic recovery. Our guests still want the heritage, values, and high quality of Bridgehead coffee – but they just are not downtown in Ottawa the way they used to be, so we have created more ways to get our coffee in their cups, wherever they are – and the results are now beginning to show,” said Steven Pelton, CEO, Aegis Brands.
Toronto-based Aegis Brands acquired Bridgehead Coffee for CA$9.5m ($6.9m) in January 2020. The only other brand currently in the group’s portfolio, 75-store fast-food chain St. Louis Bar and Grill, achieved third quarter sales of CA$4.3m ($3.1m).
Aegis Brands’ total third quarter net income reached CA$1.8m ($1.3m) compared to a CA$2.1m ($1.5m) loss in the same quarter of 2022.