Riga-based specialty coffee roaster and café operator, AS Kalve Coffee, is accelerating its international expansion, with a focus on Western Europe. The company, which went public in 2024, is reporting significant growth and strategic shifts as it executes its plans to become a recognized brand across multiple European markets.
Kalve Coffee reported , a 55% increase in revenue, rising from €3.4 million in to €5.3 million in . This growth is attributed to a combination of new store openings, increased B2B sales, and a surge in e-commerce, which saw a 142% increase year-over-year.
French Expansion Ahead of Schedule
A key component of Kalve Coffee’s expansion strategy is the opening of two fully-owned coffee shops in Paris, France, before the end of . This move, originally slated for and beyond, demonstrates the company’s accelerated timeline for entering larger markets. The locations, on Rue Desaix and Rue de Caumartin, are strategically chosen to capitalize on Paris’s growing specialty coffee scene.
According to Gatis Zēmanis, Chairman of the Board of Kalve Coffee, “We are in a market where consumers highly value quality, craftsmanship, and a product with a story.” The company views its Parisian locations as “bastions” for the KALVE brand in a discerning market.
Portugal Next in Sight
Alongside the French expansion, Kalve Coffee is also preparing to establish a representative office in Portugal. The company is actively conducting research and groundwork for future expansion into other markets, though specific timelines remain unconfirmed.
Financial Performance and Investment
The expansion efforts have required significant investment. Kalve Coffee invested €1.4 million in capital expenditures (CapEx) and other development costs in , including the opening of seven new cafes across Latvia, Estonia, Lithuania, and France. The company also increased the number of coffee machines leased to clients by 143%.
Despite the revenue growth, Kalve Coffee reported a net loss of €116,000 in , compared to a profit in the previous year. This is attributed to the costs associated with the rapid expansion and the initial investment required to establish a presence in new markets. However, the company anticipates improved profitability as these new locations mature and reach break-even.
Janis Viesturs Zēgners, Kalve Coffee’s Finance Director, stated that the company’s EBITDA increased threefold in the second half of compared to the first half, demonstrating a positive trend in its home market.
Supply Chain and Sustainability
Kalve Coffee has secured favorable pricing for the majority of its coffee volumes through long-standing relationships with producer partners. This is particularly important given the volatility in the global coffee market, with ongoing uncertainty surrounding harvest forecasts and geopolitical instability. The company also reports positive signals from Brazil regarding a strong upcoming harvest, potentially leading to greater market stability.
The company emphasizes its commitment to sustainability, operating as a B-Corp certified business. It highlights its practice of paying above-market prices to coffee growers, citing a recent collaboration with Jeremy Pedraza of “La Joya” in Colombia and Arlindo Cunha of “Fagundes” in Brazil as examples. Kalve Coffee also supports a global initiative, in partnership with “Raw Material”, to provide infrastructure support to coffee communities in Timor.
B2B Growth and Industry Recognition
Kalve Coffee’s B2B segment experienced a 31% increase in sales compared to , driven by the integration of sales, technical service, and administration into a unified B2B growth team. The company also celebrated a win at the “Roast Masters 2025” competition, further solidifying its industry recognition.
Looking Ahead to
Looking forward to , Kalve Coffee anticipates continued growth as it operates in four countries – Latvia, Estonia, Lithuania, and France. The company’s management forecasts an EBITDA of approximately €0.4 million, assuming stable economic conditions and no major geopolitical disruptions. The focus will be on solidifying its presence in existing markets and achieving break-even in its new locations.
As of , Kalve Coffee consists of four consolidated companies: Kalve Coffee OÜ in Estonia, Kalve Coffee UAB in Lithuania, and Kalve Coffee SARL in France, in addition to its Latvian operations. Total assets reached €2.8 million at the end of , and the company processed and sold 109 tonnes of specialty coffee, a 30-tonne increase from the previous year. The workforce expanded from 56 to 106 employees.
