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Tuesday 28 June 2022

Pioneer brews up Coffee Supreme deal

19th May 2022 By Staff Reporter | news@foodticker.co.nz | @foodtickernz

Private equity firm Pioneer Capital has added Wellington coffee roastery Coffee Supreme to its portfolio, snapping up the company for an undisclosed price.

(l-r) Coffee Supreme’s Chris Dillon and Pioneer’s Randal Barrett

The firm has bought the business from Chris Dillon and Maggie Well, who founded the company more than thirty years ago and have grown operations to span New Zealand, Australia and Japan.

The wholesale heavy business, led by chief executive Jesse Newson, has been building its grocery and online sales over the past couple of years after the pandemic disrupted its traditional channel and the first lockdown saw revenue crash by around 90% overnight.

It has grown online and grocery sales from around 8% pre-pandemic to sit at around 20% as at November last year, and is looking for further growth from these channels – now with the backing of Pioneer.

“We’re right behind Coffee Supreme’s current growth plans which involve increasing direct-to-consumer sales through FMCG and online channels while expanding New Zealand cafe culture and customers in overseas markets,” Pioneer’s managing director, Randal Barrett, said.

“We admire both the business strategy that sits behind Coffee Supreme and the fact it is an organisation with heart that works hard to support the New Zealand hospitality industry, particularly during Covid. We will ensure that ethos continues.”

Newson said the deal “enables us to take the business to the next level” but that it would be business as usual for customers, which alongside foodservice also included more than 100 Countdowns and more than 100 Foodstuffs stores – largely New Worlds – as well as independent retailers.

The acquisition by Pioneer comes just a few months after it bought plant-based food manufacturer Raglan Food Co, joining its other F&B investments including manufacturer Vogel’s Smart Foods and snack company Tom & Luke.

Dillon said he was “delighted” the business would remain New Zealand-owned, with Pioneer managing funds from Kiwi investors, including the NZ Super Fund, KiwiWealth by Kiwibank, iwi organisations and other New Zealand institutions.

“Coffee Supreme’s success has been underpinned by our kaupapa to continuously improve,” he said.

“Right from the outset, it’s been about caring for our customers, looking after the environment and looking after each other. It’s why our customers know Coffee Supreme is a brand they can trust and a company that values Aotearoa.”

 

 


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