Java Republic has announced the acquisition of The Island Beverage Company, the coffee brand’s exclusive distributor in the South West of Ireland.
The deal will see the existing management team and all employees join Java Republic and continue working with customers in the South West.
Java Republic managing director Grace O’Shaughnessy stated: “Despite the challenges presented by Covid-19, we believe the Irish market represents an exciting opportunity for us and for Cafento as our parent company. For our customers in the South West and beyond this is a clear statement of our commitment to them and a further demonstration of our all island approach to serving customers with a fantastic premium coffee experience.”
Kieran White, who owns The Island Beverage Company with Caroline White, said: “We have been working in partnership for many years and this announcement will allow us to bring our local knowledge and sectoral expertise to Java Republic. Given the opportunities that joining Java Republic and Cafento presents, we believe now is an optimal time to join forces.”
Founder Dave McKernan sold Java Republic to Cafento in May 2019 and exited the business. The company says it has c.1,200 customers. Cafento, one of Spain’s largest coffee companies, has annual turnover of c.€100m and has 500 employees.
The Island Beverage Company was established in 2004 and currently employs eight people in Bandon. The company booked a net profit of €70,000 in the year to March 2019 and net worth was €280,000. Total liabilities amounted to €413,000 and the company had €230,000 in debtors and €90,000 in cash at period-end.
The company had 14 people on the payroll in 2018/19, when the total payroll overhead was €390,000.