The Swedish coffee roaster is concentrating its efforts on ‘strengthening and developing’ the Löfbergs brand in the UK following a successful Tesco retail partnership launched last year
Löfbergs acquired the Percol brand in July 2013 | Photo credit: Percol
Löfbergs has sold its UK retail coffee brand Percol to India's Continental Coffee (CCL) for an undisclosed sum.
The Swedish coffee roaster began trading in the UK in 2011 supplying wholesale and hospitality clients and gained a foothold in the UK retail packaged coffee market by acquiring Percol’s parent company Food Brands Group in July 2013.
Sustainability-focused Percol, which roasts and packages wholebean, instant and coffee bag products, was among the first retail coffee brands to be Fairtrade certified. Its coffee products include the Plantation Wharf and The London Blend wholebean retail packaged coffees, and the Rocket Fuel, Perk Up and Percol Fusion instant coffee ranges.
In a press release, Löfbergs said the sale of the business will allow it to better ‘concentrate its actions’ on developing its own brand coffee across the UK.
In November 2022 Löfbergs launched its eponymous packaged coffee range in the UK at Tesco supermarket stores and online grocery platform Ocado.
Following 246% sales growth in the UK in 2022, the Karlstad-based coffee roaster introduced a new retail packaged coffee to 442 Tesco stores across the country in February 2023.
“This is a strategic decision that enables us to put all our efforts into strengthening and developing the Löfbergs brand in the UK, a market where coffee consumption still increases. Tesco, the largest retailer in the UK, started selling Löfbergs in its stores last year. Thanks to the very positive response, we have great opportunities to keep growing with the Löfbergs brand in the UK,” said Anders Fredriksson, CEO, Löfbergs Group.
Founded in 1994, CCL is one of India’s largest instant coffee manufacturers, supplying coffee to more than 90 countries.
Löfbergs said CCL’s knowledge and experience will create new opportunities for Percol to develop ‘as an instant and coffee bag brand’.
The acquisition gives CCL access to the UK’s six largest supermarket chains — Sainsbury’s, Tesco, Morrisons, Asda, Waitrose and Co-op.
The UK is Europe’s largest instant coffee market.
“We’ve had tremendous success in developing a consumer brand proposition at home and welcome the opportunity to develop a similar approach in other markets by adopting and improving local brands. Percol is an exciting venture and a brand with an undoubted favourable heritage,” said Praveen Jaipuriar, CEO of CCL.
Telangana-based CCL reported 38% net sales growth in its fourth quarter ended 31 March 2023, to reach Rs 520.08 Cr ($63m).