Risk Capital Partners acquires majority stake in UK coffee roaster
Risk Capital Partners (RCP) has acquired a majority stake in Brighton-based coffee shop chain Small Batch Coffee Company.
Consumers now expect a coffee shop’s food offering to match the quality of its coffee and this is being acknowledged by coffee shops across the globe.
Starbucks and Blue Bottle Coffee are both improving their food quality by bringing bakeries in-house, purchasing La Boulange and Tartine respectively.
RCP has approached the matter from a slightly different angle.
With its expanding portfolio of food brands, the acquisition of artisan coffee roaster Small Batch will improve the consumer coffee experience for RCP’s food-focused chains, which include Gail’s Artisan Bakery and Patisserie Holdings.
As the market continues to grow, more investors are looking to the coffee industry. JAB Holdings, which recently acquired Stumptown and Intelligentsia, also added the Espresso House Bakery to its expanding portfolio.
Through an in-house food offering, chains can maintain food quality across its outlets and constantly innovate through product development and taste.
As consumers demand more from coffee shops, 2016 could see further collaboration between coffee roasters and food-focused chains, as well as further investment opportunities for coffee shops.