Bewley's prepares a Boston tea party

The Campbell Bewley group has taken its first sip of the US coffee market, acquiring a Boston-based cafe company, Rebecca's Cafe.

Mr Patrick Campbell, the group's chairman, said yesterday that the decision to buy the company's 11 cafes and its corporate and contract catering business was part of a strategy to introduce the Bewley's brand name in the US. The Rebecca's Cafe name will be maintained, however, and, with the backing of Campbell Bewley, the chain will expand. Its expected sales in 1997 are about $20 million (£13.5 million), according to Campbell Bewley. The acquisition cost is believed to be in the region of £5 million.

"We have paid what we consider is a good price for it, but one that will give us a good return," Mr Campbell said.

He said Rebecca's had established its own reputation despite aggressive competition from such cafe chains as Starbuck's.

"We see this as a springboard for the US market. The first thing we need to do is get comfortable with Rebecca's.

"We would hope to open a Bewley's cafe within the Boston area in the current year," he said. Campbell Bewley has been seeking a US foothold for the past two years, after establishing eight outlets in Britain in addition to its 25 outlets in the Republic. The president of Rebecca's Cafe, Mr Bob Tyack, said that neither he nor his two partners had been seeking to sell the 11-year-old company, but they had been approached by an investment banker. It had helped that his company's chief financial officer, Mr Conor Creedon, from Co Cork, was familiar with the Bewley name.

Because of its size, Rebecca's Cafe had been frustrated by the limited growth rate it could achieve, Mr Tyack added.

It employs 300 people in nine Boston locations, and two locations in nearby Cambridge and Burlington.