The Swedish company Löfbergs continues its expansion
in Europe. The family-owned coffee roaster is buying the British company Food
Brands Group. Through this acquisition, Löfbergs will establish in British
retail market. The acquisition is the largest one in Löfbergs's more than
- It is a big and strategically very important deal. We are buying a well-established company with organized distribution channels with the largest stores and food retailers. This is a great opportunity for us to gain market shares in a segment that is rapidly expanding in Britain, says Lars Appelqvist, CEO at Löfbergs.
The acquisition will not affect current customers or staff. Food Brands Group will continue its business as usual with no planned changes in management or operations.
Food Brands Group was established in 1983 and has a turnover of £ 8.5 million in the roast & ground and instant coffee market through its own brands, which includes PERCOL widely known for its premium quality. In the last 10 years PERCOL has won some 40 awards for taste and quality. Food Brands Group is also the largest company in Britain when it comes to Fairtrade labelled coffee.
- Like Löfbergs, the Food Brands Group has focused on its sustainability work. We share its values regarding the responsibility for people as well as the environment. That makes us a really good match, says Lars Appelqvist.
In 2011, Löfbergs bought the British company Red Cup that supplies coffee and coffee machines to offices and other large-scale households. The acquisition of Food Brands Group means that Löfbergs's turnover in Britain will amount to approximately £ 12.5 million.
More coffee than tea
The hot beverages segment is growing with 4-5 percent a year in Britain. In 2011, the market was worth £ 1.4 billion. Today, the Brits are purchasing more coffee than tea. Instant coffee represents the largest share, but ground coffee is growing the most.
Löfbergs was established in 1906 and for a long time, the company only sold its coffee in Sweden. In 1993, it started exporting coffee to the Baltic countries. Since then, the company has made a number of acquisitions in Denmark, Norway, Latvia and Britain among others.
- Today, Löfbergs is active on 10 different markets in Europe. About five years ago, more than 10 percent of our coffee was sold outside of Sweden. Today, that number is almost 40 percent, says Lars Appelqvist.
For more information:
Lars Appelqvist, CEO, Löfbergs, +46 (0) 54-14 01 29
Löfbergs is one of the largest family-owned coffee roasters in the Nordic countries. The company has 280 employees and a turnover of SEK 1.5 billion. The head office is situated in Karlstad, Sweden and the company has its own roasting-houses in Sweden, Norway, Denmark and Latvia. The company was founded in 1906 and is today one of the world's largest importers of ecological and Fairtrade labelled coffee. Löfbergs also owns the tea brand Kobbs.