Matthew Algie wakes up to smell the coffee

VENERABLE Scottish coffee firm Matthew Algie has enjoyed double-digit growth in turnover and profits as recession-hit customers continue to insist on a quality cuppa, the firm said.

The independent coffee roaster grew turnover by 10 per cent to £33.2 million, while pre-tax profits rose 12 per cent to £1.9m in the year to the end of December 2010.

Eric Hagman, the 147-year-old firm’s chairman, said the boost in performance was a “significant achievement” despite skyrocketing global coffee prices and pressures on consumers.

He said: “The out-of-home coffee market has remained relatively buoyant as consumers clearly remain determined to allow themselves their small luxuries.”

He added that 2010 was a record year for sales of the company’s Fairtrade and “triple certified” coffee, which is Fairtrade, organic and Rainforest Alliance certified.

Hagman said poor harvests, particularly in Columbia, and increasing world demand had led to sharp increases in coffee bean prices throughout 2010 and which peaked to a record 34-year high this summer.

“Continued commodity price pressure has made 2011 a challenging year for the industry as a whole, however Matthew Algie performance is holding up well compared to target,” he said.

The Gorbals-based firm, which is one of the largest independent coffee roasters in the UK, supplies Marks & Spencer, Sainsbury’s, the Gleneagles Hotel and the Houses of Parliament.