Despite a recovery in Horeca trade and its Coca-Cola HBC partnership driving sales growth, the Italian coffee roaster and café chain posted a loss following higher raw materials and energy costs
Caffè Vergnano is now present in 90 countries, 17 of which have been facilitated by its Coca-Cola HBC collaboration | Photo credit: Coca-Cola HBC
Caffè Vergnano has reported strong 2022 revenue growth but posted a full-year loss following increased raw material and energy costs.
The Piedmont-based coffee roaster and café chain reported a 12% increase in gross turnover last year to reach €99.2m ($110m), led by a strong performance across its café, restaurant and hotel distribution channels.
Caffè Vergnano said the lifting of pandemic restrictions in most markets at the start of 2022 and the growth of its distribution partnership with Coca-Cola Hellenic Bottling Company (HBC) were the main contributors to sales growth.
However, the coffee roaster and café chain said higher raw material and energy prices negatively impacted 2022 profits, resulting in a loss of €425,000 ($471,000), compared to profit of €3.5m ($3.9m) in 2021. Caffè Vergnano said it absorbed the majority of price rises to minimise the impact on consumers.
Coca-Cola HBC acquired a 30% minority stake in Caffè Vergnano in June 2021 and entered into an exclusive agreement to distribute its products outside of Italy.
Caffè Vergnano is now present in 90 countries, 17 of which have been facilitated by its Coca-Cola HBC collaboration. The coffee roaster and café chain forecasts further expansion via the partnership this year.
In a 2023 update, CEO Carolina Vergnano said turnover in the first six months of this year is 9% above the same period in 2022, with horeca sales 16% higher year-on-year.
Alongside its roasting and horeca distribution channels, Caffè Vergnano also operates 178 Caffè Vergnano 1882 coffee shops worldwide. The majority (119) are in Italy.