Matthew Algie swallowed by Tchibo
Well it has been on the rumour mill for long enough, but it has now finally happened!! Matthew Algie has been sold to what must be the highest bidder - German coffee and food service business Tchibo.
Tchibo said the deal – for an undisclosed sum – highlighted its desire to expand its coffee service business in the UK, while flagging the potential to grow Matthew Algie’s Espresso Warehouse brand across Europe.
Matthew Algie, previously a trailblazer in out of home coffee provision, celebrated its 150th anniversary in 2014 and employs 220 people. Whilst the brand and management team will be retained Tchibo will want their pound of flesh. Good news in the aftermath of Brexit that Scottish based business is still an attractive target for european competitors.
Algies now join Brodies as a wholly owned subsidiary of a European conglomerate since they were sold to Segafredo food group back in 2007/08. The world of coffee seems to hold no end of investor interest as acquisitions abound across Europe and the world.
Amazingly, everyone who invests seems to agree that local service is the differentiator for providing a commodity based product - so why is local being diluted by acquisition after acquisition?
My view is that locally owned and delivered service will always be superior as the people involved in delivery of the service are answerable directly to their customers and not a large corporation in a far off land!! I may be in the minority, but I would welcome your feedback and comment...