Tchibo Coffee Services and Capitol Foods merge under Matthew Algie brand

Matthew Algie is increasing its  roasting capacity to over 2,500 tonnes of coffee each year | Photo credit: Matthew Algie

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Glasgow-based coffee roaster Matthew Algie is set for a new era of growth after becoming the flagship coffee brand in the UK and Ireland for parent company Tchibo. 
 
A strategic merger will see Tchibo Coffee Services and Dublin-based Capitol foods trade under the Matthew Algie brand – a move intended to generate synergies and efficiencies across a consolidated coffee, beverages, food and equipment portfolio. 
 
In press release, Matthew Algie Managing Director Paul Chadderton said the expanded business would deliver a competitive edge in the UK’s fast-growing post-Covid coffee market. 
 
“Coupling this move with the recent investment programme we announced back in April 2023, it places the firm in a very strong position to build upon our growth strategy and at a pivotal moment in the coffee sector,” he said. 
 
Chadderton also highlighted significant opportunities in the non-specialist operator segment, adding that businesses such as garden centres increasingly view in-store cafés as a “critical part of their income.”
 
After securing a multi-million-pound investment in 2023 to expand production, shipping and storage capacity at its Glasgow roastery, Matthew Algie has also moved the majority of its leadership team to the Scottish city.

Hamburg-based Tchibo acquired Matthew Algie in 2016 and Capitol Foods in 2018, with each continuing to operate under its own name. 
 
Founded in 1864, Matthew Algie reaches over one million consumers, supports 12,000 wholesale customers and employs more than 400 staff. Alongside coffee, the sustainability-focused roaster also partners with prominent brands including Suki Tea, Minor Figures and Lotus to supply milk, syrups, beverages and snacks via its Espresso Warehouse wholesale platform. 
 
Dublin-based Capitol Foods supplies coffee, tea, hot chocolate and soft drinks and equipment services to convenience store and forecourt operators. 
 
Tchibo is one of Europe’s largest coffee groups, operating in more than 60 countries with a portfolio of packaged coffee brands including Davidoff Café, Smokin’ Bean, Piacetto and Caffè Molinari. 
 
It also operates a vast wholesale business alongside 550 branded coffee shops across Germany and a further 320 across Austria, the Czech Republic, Hungary, Poland, Slovakia, Switzerland and Turkey.
 
Posting sales of €3.24bn ($3.53bn) in 2022, Tchibo incurred an annual EBIT loss of €167m ($182m amid increased raw material, energy and freight costs. In December 2023 Tchibo appointed Erik Hofstädter as its new CEO.