Exceptional opportunity to acquire this exceptional coffee brand.
I have been fortunate enough to be involved in the sale of a number of coffee companies of all sorts of shapes and sizes and I am very excited by this one!
It’s a fabulous brand and a fabulous opportunity to really grab something by the scruff of the neck and grow it!
Red Rabbit Coffee Co was founded by Steve Barrett in 2013 in Central Wellington and it was the first roastery to pioneer single-origin coffee for use in espresso and in a wide range of unique filter coffees in NZ.
WHAT IS FOR SALE?
For sale are 2 things.
- The Red Rabbit Coffee Company itself including all tangible assets and all associated brand, IP, recipes, know how, relationships etc. The whole lot!
- The highly successful Red Rabbit Espresso Café in Westfield 277, Newmarket.
THE BRAND
Red Rabbit has a stellar brand reputation. The brand stands for quality. Quality of product, of equipment, of sites, of staff. It’s a brand that makes Red Rabbit appear to be far larger than it actually is!
This is brand value that has been earned through reputation alone. It hasn’t been paid for via automated Google ‘bots and clever viral social media campaigns. A second brand Wildcat Coffee also comes as part of the deal.
THE ROASTERY AND COFFEE
The roastery goes through 250kg of green beans a week. This end product is a mixture of house & retail espresso and filter coffee, and speciality espresso and filter.
Red Rabbit has always championed single-origin coffees for use in espresso and filter preparation. They work with local and overseas importers to find and source farms/origins with flavour profiles that customers may not have tasted before.
THE EQUIPMENT
Red Rabbit Coffee Co owns some quality kit! In fact, it cost over $350,000 when new! There is a long list of chattels that come with the business and the list includes a modified Probat L15 roaster, 2 Slayer 3 Group coffee machines, 4 Ubermilk systems and a host of Mahlkonig grinders.
RED RABBIT ESPRESSO CAFE
Red Rabbit Espresso café in Westfield’s 277 is a busy place. It is a magnet for people who love coffee, and it is THE place to go if you want the good stuff! Weekly sales are around $21,000 (inc GST) and this includes the sale of retail coffee beans. This cafe sells over 80kg of beans a week!
This is a café where the format couldn’t be easier. No kitchen and No food menu.
It’s a fully managed business. No owner works here – just highly talented Baristas. The café alone generates a fully managed profit of $125,000. This translates to an owner operator surplus of $180,000 per annum.
RETAINING STEVE BARRETT
Here is the really exciting aspect of this sale. Steve if the founder of Red Rabbit. loves coffee. He lives and breathes it. He loves Red Rabbit. He lives and breathes it. His overriding wish is to stay with the company he created, where possible, and be the coffee ‘guru’ at the centre of it all!
Steve has growth goals and ideas for the company and would dearly love to see the company grow to the size it really should be and that’s where you come in! He would love to retain a shareholding in just the coffee roasting part of the business.
For someone to be able to acquire such a prestigious brand and be able to retain the services of the man who created it, and with that person continuing to drive the quality and passion behind the product is just a dream scenario.
This could be a sideways or vertical integration. You could be an existing coffee company. You could be a food producer or distributor or manufacturer. You could be a chain of cafes or restaurants. Or you may just be someone who has a real passion for coffee, is after a solid brand worth growing and you have the transferable business skills and the drive to make it happen!
BUSINESS HIGHLIGHTS
- Incredible brand
- Very high-quality equipment
- Fabulous fully managed and profitable cafe operation
- Good supply contracts in place
- Incredibly solid base from which to grow
- Around $300,000 as a surplus
- The talent of a real coffee ‘guru’ in Steve Barrett (if wanted)
THE PRICE
The asking price is for BOTH the coffee company (100%) and the Newmarket cafe (100%).
You may decide to retain Steve as a shareholder in the coffee company and the price will be adjusted accordingly.
This is an incredible opportunity to acquire one the most respected coffee brands in the market. Together these businesses generate an EBITDA of around $220,000 per annum, or a surplus of around $300,000 to a working owner. You will be acquiring some serious brand value / IP and an impressive asset list.
The growth opportunities are immense and the opportunity to have Steve Barrett stay as a shareholder in the coffee company is gold.
Asking $1m plus stock
Nick Giles, 021 676 832, nick.giles@linkbusiness.co.nz
***Some details of the business for sale are confidential and can only be disclosed upon contacting the broker and a completion of a Confidentiality Agreement. Due to the confidentiality of this business a stock photo image may be used to represent the business.
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