Swiss Water says growing demand across North America and Asia Pacific generated 41% year-on-year revenue growth as consumers increasingly preference its solvent-free decaffeination process
Swiss Water said most of its wholesale customers had ordered at or above pre-pandemic levels | Photo credit: Swiss Water
Swiss Water has reported robust revenue, volume and profit growth for 2022 as a result of increasing consumer demand for its chemical-free decaffeinated coffee.
The Vancouver-based decaffeinated coffee company achieved 41% year-on-year revenue growth to reach CA$176m ($129m) for the 12 months ended 31 December 2022.
Swiss Water said annual volumes were 19% higher in North America, with the US and Canadian markets contributing 48% and 26% of total sales respectively. Growth in the region was credited to increased shipments to new out-of-home customers.
Additionally, 2022 volumes in Asia Pacific grew 10% compared with the previous year.
Total volumes across all markets increased 15%, with Swiss Water stating that most of its wholesale customers reported strong consumer demand and had ordered at or above pre-pandemic levels.
Swiss Water, which counts Café Grumpy, Blue Spruce Coffee Co., Kaldi’s Coffee Roasting Co., Linea, Ninth Street Espresso and Talking Crow Coffee Roasters among its US roaster partners, said its full-year net income reached CA$2.4m ($1.7m) while adjusted EBITDA grew 58% to CA$16.7m ($12m).
“Annual revenue exceeded CA$175m for the first time, and adjusted EBITDA increased by 58% to CA$16.7m. We are particularly happy that volumes in our biggest market, North America, grew by 19% in 2022. Our existing customers continue to experience growing demand for their chemical-free decaf offerings. While at the same time, we are seeing very good evidence in the marketplace that the methylene chloride decaffeination process used by many of our competitors is declining in preference by roasters and consumers,” said Frank Dennis, CEO, Swiss Water.
In the third quarter of 2023 Swiss Water will move its production line to a new facility in Delta, British Columbia. The company forecasts reduced sales volumes due to ‘capacity limitations’ associated with the relocation.
“This transition marks the culmination of a multi-year project to relocate, modernise and expand the capacity of Swiss Water’s production assets. The consolidation of all production in Delta will provide us with a number of operational efficiencies and will provide capacity for intermediate-term growth and help enable roasters to accelerate their migration to chemical free decaffeinated coffee,” Dennis added.
Swiss Water uses its proprietary Swiss Water Process to decaffeinate green coffee without the use of solvents such as methylene chloride, while maintaining the product’s original flavour.
According to the company, more than 75% of worldwide decaffeination processes use chemical solvents, which Swiss Water argues negatively impacts the environment, particularly slowing the regeneration of the ozone layer.