Dublin-based premium coffee roaster Java Republic has signed a distribution deal in the UK with a company called First Choice in a move that should add about €3 million a year to its turnover. The deal was agreed earlier this week and marks Java Republic's first entry into the UK market.
First Choice will distribute its range of premium coffee and tea products to hotels, cafes and restaurants in the UK. Java also plans to target retailers and supermarket multiples.
"It has taken nine years for us to get off the island of Ireland so this is a very big deal for us," said founder David McKernan.
Java was founded in 1999. It achieved a net profit in 2007 of €500,000 from revenues of €7 million, Mr McKernan said.
It is currently investing heavily to expand its business. It has built a new manufacturing facility near Blanchardstown in west Dublin, where it will also open a visitor centre and cafe.
"We're spending about €8 million on our expansion," Mr McKernan said.
"It will increase our capacity by 10 times."
Mr McKernan said the cost of buying and building the 2.2 acre site was about €6.2 million.
He said employee numbers would rise from 44 to 68 when the facility opens fully in July.
Based in Milton Keynes, First Choice is owned by Dutch group Drie Mollen International, a pan-European coffee roaster with revenues of more than €250 million a year.
"Long term, First Choice is going into the European market, which gives us a great chance to bring the brand to continental Europe," Mr McKernan said.
Java Republic raised €1 million in November through a business expansion scheme through accountants Cronin & Company. This was the latest in a string of expansion schemes that it has used to raise funds. MrMcKernan said it also has loans of about €6.5 million with Bank of Ireland. "They've given us great backing throughout," he said.
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