Two venerable Metro Vancouver-based coffee chains are combining into a coffee roasting and coffee shop giant.
Vancouver-based coffee chain Artigiano, founded in 1999 as Caffè Artigiano, has bought the 29-year-old Richmond-based Salt Spring Coffee for an undisclosed amount, Artigiano owner Dean Shillington told BIV.
"It's not confidential that Salt Spring had run into some financial challenges with the coffee market and the coffee industry," said Shillington, whose Artigiano operates 25 cafés.
He said he plans to open Artigiano's 30th café by the end of June, following new openings in:
- Park Royal in West Vancouver;
- Brentwood Skytrain in Burnaby;
- White Rock;
- Phibbs Exchange in North Vancouver; and
- East Vancouver.
"There's a lot more behind that, but those are the ones that we've announced," he said.
"We're looking at locations in Kelowna right now."
All of the cafés are in Metro Vancouver, except ones in Nanaimo, Whistler and Calgary. The Artigiano website only lists 18 locations but Shillington said some, such as ones in Stong's Market locations, are not included in that tally.
Coffee prices soar
Data on the Trading Economics website illustrates what caused some of the financial problems that Shillington said were afoot at Salt Spring Coffee.
At the start of February last year, the coffee bean futures market pegged the coffee price at US$1.88 per pound. The price for those futures contracts has since soared to US$3.76 per pound.
Fears swirl that coffee prices will soar higher. There could be tighter global supplies thanks in part to the world's top coffee producing country, Brazil, having a smaller crop than in past years.
Both Salt Spring Coffee and Artigiano feel the sting of higher coffee prices and the challenge of raising prices for customers. The coffee price increase, however, impacts roasters such as Salt Spring Coffee more than it does Artigiano, which roasts coffee but mostly gets revenue from its coffee shops.
The acquisition makes Artigiano the second-largest roaster of organic coffee in Canada, Shillington said.
Artigiano had loyal following from the start
Artigiano established a loyal clientele in the early 2000s, after its founding entrepreneurial brothers Sam and Vince Piccolo opened the first three Caffè Artigiano locations, all in downtown Vancouver, on:
- Hornby Street,
- West Pender Street; and
- West Hastings Street in downtown Vancouver.
They then sold the business to former Earls executive Willie Mounzer, who rapidly expanded Caffè Artigiano, tripling its number of locations to 15 and moving into Alberta.
Various other ownership combinations ensued until Shillington bought out partners in 2019 to fully own the brand.
Expansion continued through the pandemic era, as the chain opened its 17th location in 2022, following a strategy of opening in former Starbucks locations.
Shillington called it a "milestone" to integrate Salt Spring Coffee into Artigiano.
“Salt Spring Coffee’s unwavering dedication to sustainability and exceptional coffee quality aligns seamlessly with our values," he said. "This partnership broadens our product offerings while strengthening our commitment to environmental stewardship, including a continued focus on organic and non-GMO ingredients in everything we serve.”
Mickey McLeod and Robbyn Scott founded Salt Spring Coffee.
McLeod, the company's president, will stay with the company and run it within Artigiano, Shillington said.
"Joining forces with Artigiano is a natural progression for us," McLeod said.
"Artigiano’s commitment to premium quality, thoughtful sourcing and deep community connections aligns perfectly with the values that have guided Salt Spring Coffee since Day 1."
Salt Spring Coffee notes on its website that it operates a café and kitchen on Salt Spring Island. That is its only café.
Its main business is selling beans wholesale to cafés, foodservice ventures and retailers, such as London Drugs. A large roasting facility in Richmond operates and will continue to run, Shillington said.
"This partnership will expand our collective reach through café experiences and grocery retail while staying true to the shared values that define both of our brands," he added.
He called running Artigiano a "hobby business," given that his bread and butter is restructuring businesses and keeping them out of bankruptcy.