Pubco deal is full of beans

Star Pubs & Bars teams up with coffee firm

GLASGOW-based coffee roaster Matthew Algie has teamed up with Star Pubs & Bars in a deal which will see licensees gain access to a new range of beans and machines.
The agreement between the Heineken-owned pub company and Matthew Algie gives lessees a choice of three sustainably-sourced coffees, including two organic blends, covering filter, bean-to-cup and barista serves.

As part of the package, Star Pubs & Bars licensees will receive training and three visits a year from Matthew Algie, which will provide category insight and share best practice on how to expand their range and boost sales.
The Matthew Algie package on offer has a term length of 12 months and is optional for licensees, with Star stating it will receive no commission on sales.
Lawson Mountstevens, managing director of Star Pubs & Bars, which has 109 sites in Scotland, said that coffee is “one of the highest GP income streams for pubs” making it “no longer a ‘nice to have’”.
“All pubs should have a good offer as it has a real role to play in creating a sustainable business,” he said.
“Customers are used to getting great coffee in town centre cafés and now want comparable quality on their doorstep at their local.”
Matthew Algie, which was established in Glasgow in 1864, supplies cafés, bars, restaurants and hotels across the UK and Ireland.
The firm was acquired by German coffee and foodservice business Tchibo for an undisclosed sum last year.
The heads of both firms hailed the deal as “complementary to their respective brands and customers”.
Nick Snow, managing director of Tchibo Coffee Service, said the German multinational was attracted to Matthew Algie for a number of reasons, including its dedication to ethical trading, its training operations and technical customer support.
Following the deal, the Matthew Algie brand has been retained in the UK and the company continues to operate with the same management team.
Eric Hagman of Matthew Algie said the deal gives the firm a “major platform” for growth.
“Tchibo is the right partner to help us build on the achievements of the last few years and we are very excited about the future potential of the business,” said Hagman.