London-based Pact Coffee has celebrated the success of its multi-channel strategy, attributing a significant boost in sales to its recent partnership with Waitrose, a premium UK supermarket chain. This collaboration, which marked Pact’s first retail listing, helped the company achieve a 2% year-on-year increase in sales for the 12 months ending December 31, 2023, reaching £11.7 million ($15.6 million).
Sales soared by 19% in the fourth quarter of 2023, reflecting the positive impact of the Waitrose partnership, which was established in October. The company’s business-to-business (B2B) segment also saw growth, along with a rise in direct-to-consumer sales in the latter part of the year, offsetting weaker performance in the first half.
Pact Coffee reported a remarkable 260% increase in full-year EBITDA, totaling £325,729 ($434,888), despite a slight decline in gross margin due to rising arabica coffee prices.
CEO Paul Turton commented on the company’s resilience: “As many returned to the office and consumed less coffee at home, we anticipated a decline in direct-to-consumer sales following a surge in 2020. However, we navigated the challenges of the post-pandemic landscape prudently, while many direct-to-consumer brands struggled. I’m thrilled we’ve quickly returned to growth, despite inflation, rising coffee costs, and volatile exchange rates.”
Founded in 2012 as a direct-to-consumer coffee subscription service, Pact Coffee has broadened its approach by incorporating B2B and supermarket sales. In 2024, the company signed distribution agreements with Whole Foods Markets, as well as grocery delivery services Ocado and Gopuff.
Looking ahead, Pact Coffee forecasts double-digit sales growth across all channels in 2024, driven by strong e-commerce performance and a popular Christmas product range. Despite ongoing coffee price volatility and increased costs, the specialty coffee roaster anticipates further growth in full-year EBITDA.
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