Business And Leadership: Irish coffee tech firm inks Gaggia deal

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Irish coffee tech firm inks Gaggia deal

23.11.2009
Irish-owned coffee technology company Watermark has secured a significant UK distribution agreement with renowned Italian coffee machine maker Gaggia SpA.

Watermark has worked with Gaggia in Ireland for over 10 years. The deal between the two was struck when the Italian firm approached Watermark to replicate the Irish business model in the UK market.

The deal will increase the number of staff employed in Watermark to some 25, including a UK-based sales team.

According to Watermark, the Gaggia deal represents a huge opportunity for it to establish a major footprint in the UK market for commercial machine sales, which is estimated to be worth in the region of £50m-£60m per year.

The Irish firm is forecasting that its turnover will treble within three years as a result of the deal.

“While we didn’t actively seek overseas opportunities, we were approached by Gaggia on replicating our distribution arrangement in the UK market,” said David Lawlor, Managing Director of Watermark.

“The commercial coffee market is led by service ... Gaggia see us as a very progressive team of people who are really committed to delivering best-in-class service to our customers, which ensures that they will re-order Gaggia machines in the future.

“When Gaggia approached us in relation to the UK opportunity, we drew up a strategy and business plan which they agreed with and support,” Lawlor explained.

“This is a very exciting opportunity for both Watermark and Gaggia, especially in light of the current climate where opportunities for growth are few and far between,” he added.