Campbell Bewley wins Delta Airlines contract

Campbell Bewley Group has signed a five-year contract with Atlanta-based Delta Air Lines to supply coffee to its customers on all Delta US domestic and international flights.

The group made the announcement as it reported a 14% increase in pre-tax profits to €5.6m for the year to end December, 2002 on turnover of €134.5m.

The group had a net profit pre-exceptionals of €4.2m.

Campbell Bewley also stated that it has initiated a share buy-back scheme from staff who were gifted shares in 1998 and staff who participated since then in the Group’s employee share ownership schemes.

The buy-back will benefit approximately 500 current and former employees to a maximum of 2,000 shares per owner at a price of €4.90 per share.

According to Chief Executive, John Cahill: "Performance was very strong given the challenging worldwide economic environment which prevailed throughout 2002."

On the trading front the catering company said the Group’s Dublin based coffee roasting, tea blending and distribution operations had a strong year, in spite of lower levels of economic activity and a decline in tourism.

The substantial investments made in new production technologies and facilities are yielding significant results, indicated in the award of a major supply contract for Tesco’s roast and ground coffee business in Ireland and the UK.

He also referred to the sale of the company's leasehold interest at its Mary Street, Dublin at commercial rates.

In the US its cafés, trading under the Java City brand name, performed very well.

On the East Coast, the Boston-based cafés, operating under the Rebecca’s brand name had a difficult year in 2002, attributable to the general economic situation.

The company is expecting an uplift in trading conditions in 2003.

Cahill also indicated that the company would expand its franchised café operations in South Korea, in addition to the six outlets already operating in the capital, Seoul.

The group also added 48 new contracts to its portfolio on the contract catering front.

Growth prospects in this area have been particularly enhanced by the launch of a full facilities management division, Campbell Services, which won a number of new contracts in the public sector.

UK contract catering operations also yielded satisfactory returns.