Matthew Algie, the venerable coffee roaster, has entered the “next chapter” after unveiling a merger deal that will see the 160-year-old business expand its Glasgow HQ.

German coffee and food service group Tchibo bought the Scots firm in 2016, then Capitol Foods in 2018, with each business operating under its own name. Now, Hamburg-based Tchibo has decided to consolidate its UK and Ireland businesses under the Scottish brand’s name.

As a result of what is being classed as a “formal merger”, the single operation will provide customers with a wider range of products from across the entire business portfolio while offering “improved efficiency and service” to its customer base, bosses noted. They said the post-pandemic growth in coffee drinkers had shown “no signs of slowing down” with the firm investing in its Glasgow roastery to increase production. More than half of the group’s 400 staff will be based at the historic Glasgow site.

Glasgow-based Matthew Algie launched 160 years ago and today supplies coffee and tea products to thousands of cafes across the UK and Ireland.

Paul Chadderton, managing director of Matthew Algie, said: “This is a significant moment for our business and particularly for our Glasgow HQ which is the beating heart of our business. Coupling this move with the investment programme we announced back in April 2023, it places the firm in a very strong position to build upon our growth strategy and at a pivotal moment in the coffee sector.

“The majority of the senior leadership team, including myself, have all relocated to Glasgow as we continue to expand the capabilities of the site including launching our new fully recyclable packaging, various new product lines and our training and development hub which is an industry leading centre for training the next generation of baristas across the UK and Ireland.”

The coffee roaster serves some 20,000 customers and one million consumers and is one of the industry’s longest established names. It supplies coffee and tea products to thousands of cafes across the UK and Ireland. The firm was the first roaster to offer triple certified espresso coffee - approved by the Fairtrade Foundation, Rainforest Alliance and Organic Food Federation.

Chadderton added: “We are seeing new markets emerge as businesses look to grow their sources of revenue. Sectors such as garden centres no longer simply use their cafes as a footfall driver but they are a critical part of their income.

“Matthew Algie is perfectly positioned to help these businesses and our staff are experts in helping firms get more out of their coffee offering. Whether that is helping firms move to more sustainable operations by using our carbon neutral products, or simply supporting local cafes to adapt to the ever-changing trends within the market. This new announcement will accelerate our ability to support our tens of thousands of customers. I look forward to leading this famous business into the next chapter of its illustrious history.”

Matthew Algie was the winner of Glasgow’s Most Outstanding Business at the Glasgow Business Awards in 2023. The global coffee service business of Tchibo was founded in 1972 and made its first move into the UK in 1991.

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Historic Glasgow coffee roaster founded 160 years ago to ramp up production after turning ‘next chapter’

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