From left: Morten Wennersgaard, David M. Neumann, and Andreas Hertzberg in Hamburg, Germany.
In one of the most prominent transactions in the specialty coffee sector so far this year, leading green coffee business Neumann Kaffee Gruppe (NKG) took a majority stake in the Nordic Approach Group, an Oslo-based company focused on premium coffees from selected origins. The deal includes Nordic's sourcing division, which operates as Tropiq.
NKG, based in Hamburg, said the deal would position it as a "dominant force" in specialty coffee, while Nordic co-founder Morten Wennersgaard wrote that it would help his company expand its "product line, financial capacity, level of service, and logistics." He and co-founder Andreas Hertzberg will retain a minority share in Nordic, where, as joint managing directors, they will continue to lead its operations, decision-making, and strategy.
Founded in 2011 Nordic Approach provides green coffee, services, information, and marketing to roasters around the world, with a focus on beans from East Africa and Central and South America. They cater to markets in Europe, Asia, and the Middle East from their warehouse in Seabridge, Belgium and to North America from a warehouse in New Jersey.
Tropiq, spun out in 2017, provides direct sourcing of high quality specialty beans at scale for medium-size and large roasters, with affiliates in Ethiopia and Colombia. Tropic says that it works on a close, long-term basis with cooperatives, coop unions, and farms, emphasizing sustainability, transparency, and payment of premiums to producers.
“We are confident that we now are in an ideal position to expand our specialty business not just in Scandinavia, but across Europe, Asia and the Middle East," said NKG Group CEO David M. Neumann. "At the same time, we will become better business partners for producers and sellers of the highest quality coffees and to offer a full range of green coffee and coffee-related services to the high-quality focused Scandinavian market.”
Neumann Kaffee Gruppe has some 3,000 employees at 50 companies in 26 countries. It operates across various green coffee sectors including export & milling, import, farming, agenting and services.