Asahi takes on $1bn coffee market with AllPress acquisition
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Asahi Beverages is cementing itself as a local leader in the beverages market with the announcement of its foray into the $1 billion fresh coffee market.
The business has snapped up Allpress Espresso, a global coffee brand that has operations in Australia, New Zealand, the UK, Japan, and Singapore.
Established by Michael Allpress in Auckland over 30 years ago, the brand first came to Australia in 2000 and is now recognized around the globe, selling more than 1500 tonnes of coffee beans worldwide each year.
Asahi Beverages Group CEO Robert Iervasi (pictured above) is confident that the acquisition puts Asahi Beverages in a powerful position in the local market at a time when Coca-Cola Amatil is moving under European ownership.
“We’re the multi beverage supplier of choice in Australia … and we believe we can bring a better product and better service to consumers,” Iervasi told Inside FMCG.
AllPress will continue to run as a standalone business with Asahi supporting the brand’s growth through its extensive customer relationships and expertise in the consumer goods space.
Currently, the bulk of AllPress’ business is the supply of roasted coffee beans to boutique cafes and restaurants, but Asahi has big plans to grow the brand’s presence, including thorough expansion into licensed venues and grocery stores.
AllPress has already produced a canned cold coffee range and sells ready-to-pour coffee shots in bottle and bag form. While its portfolio features around 10 proprietary blends, its flagship Allpress Espresso Blend and A.R.T Espresso Roast comprise over 80 percent of sales.
The business also has a strong direct-to-consumer offer online and through more than a dozen Allpress cafes, including in Melbourne and Sydney.
“We’re the multi beverage supplier of choice in Australia … and we believe we can bring a better product and better service to consumers,”
Allpress CEO Vaughan Magnusson told Inside FMCG that the two companies share the same values and expectations on quality and that Asahi is the perfect partner to support the growth of the business.
“They are the right organization to take Allpress to the next level,” he said.
Under Asahi ownership, AllPress will also continue to expand the DTC business.
Iervasi told Inside FMCG that Asahi has confidence in the brand because of its ability to deliver a premium coffee experience and superior customer service.
“AllPress has a commitment to flavor, quality customer service, and a strong track record of growth,” he said.
While no financial details of the deal were disclosed, Iervasi confirmed that the 240+ full-time staff at AllPress will remain, with management untouched and Michael AllPress remaining as an ambassador, and the day-to-day operations will not be affected.
“No one’s losing their jobs,” Iervasi said.
After welcoming CUB to the fold last year, Iervasi said Asahi is committed to supporting and creating jobs in Australia and New Zealand and expanding beverage offerings.
Questions & Answers
Q.What is the primary motivation for Asahi's acquisition of Allpress Espresso?
What is the primary motivation for Asahi's acquisition of Allpress Espresso?
Asahi aims to cement its position as a local leader in the beverages market. The acquisition allows them to enter the fresh coffee market and strengthen their presence as a multi-beverage supplier.
Q.How will the acquisition affect the operations and staffing of Allpress Espresso?
How will the acquisition affect the operations and staffing of Allpress Espresso?
Allpress will continue to run as a standalone business, with its management untouched. The 240+ full-time staff will remain, and Michael Allpress will stay on as an ambassador.
Q.What are Asahi's plans for expanding Allpress Espresso's market reach?
What are Asahi's plans for expanding Allpress Espresso's market reach?
Asahi plans to grow the brand's presence by expanding into licensed venues and grocery stores. They will also continue to expand Allpress's direct-to-consumer business.
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