The 117 years old Löfbergs Coffee from Sweden sells Percol brand in UK
June 08 - 2023
Coffee Geography Magazine
The coffee roaster Löfbergs sells the British brand Percol to India-based Continental Coffee. With this transaction, Löfbergs will fully focus on its own brand in the UK. India based instant coffee manufacturer CCL Products Ltd has acquired several coffee brands from Nordic player Löfbergs Group’s subsidiary Food Brands Group for £5,500,000
"This is a strategic decision that enables us to put all our efforts on strengthening and developing the Löfbergs brand in the UK, a market where the coffee consumption still increases," says Anders Fredriksson, CEO for Löfbergs Coffee.
The acquisition will give the Indian coffee company access to major supermarkets in the UK, which is Europe’s largest instant coffee market with annual retail sales of US$850m. Established in 1994, Continental Coffee is India's largest instant coffee manufacturer, supplying coffee to over 90 countries. This new acquisition is expected to create opportunities for Percol to develop and grow in the future as an instant and coffee bag brand.
Löfbergs entered the UK market in 2011, with a focus on hotels, restaurants, and cafés. The Percol brand was acquired by Löfbergs in 2013, which lead to an establishment on the British retail market. Löfbergs will now focus on its own brand in this segment as well.
"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," says Anders Fredriksson.
Löfbergs was founded in 1906 in Karlstad, Sweden, and is now one of the largest family-owned coffee roasters in the Nordic countries. The company started exporting coffee in 1993, and every second cup is sold outside of Sweden today.
Commenting on the acquisition, CCL CEO Praveen Jaipuriar said: “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”