Young, innovative Swedish startup finds a partner in Paulig: Mode gains additional strength for product development, internationalisation and growth

Paulig has obtained a majority holding in the Swedish coffee company Mode Cold Brew. With the investment, Paulig strengthens its position in Sweden and expands its product selection with the unique cold brew coffee. Mode Cold Brew coffee, which is completely free of additives and sugar, has been served at events such as the Nobel banquet after-party, and its owners include the musician Avicii.

Paulig is keen to be at the forefront of food industry development and learn from startup companies. Partnerships are a part of Paulig’s strategy, which enables the more than 140-year-old family-owned company to grow and launch new products with agility in both the Finnish and international markets. The investment in Mode Cold Brew strengthens the position of Paulig Group’s Coffee Division in Sweden, where Paulig is known for the strong Risenta and Santa Maria brands, among others. Paulig has also recently introduced Finnish food industry innovation Pulled Oats™ to the Swedish market and launched the new This Cup Counts coffee concept there. 

Cold brew coffees has seen very strong growth in the US and Asian markets. Sales of cold brew coffees have more than doubled in these markets over the past year and they are one of the fastest growing beverage segment. In Finland, Paulig introduced cold brew coffee to Finnish coffee culture two years ago. Now Paulig will launch a cold brew coffee product with consumer packaging via Mode Cold Brew.

“At Paulig, we want to keep our finger on the pulse and offer new flavours in addition to our beloved classics. Cold brew coffee and healthy living have been rapidly growing trends in Finland and abroad for a few years already, and we believe that the unique Mode Cold Brew coffee is the product of the future. I personally fell in love with the flavour of the product in particular, which is velvety soft compared to other similar drinks I have tried abroad,” says Managing Director of Paulig Group’s Coffee Division Elisa Markula. She continues:

“The decision to partner with Mode Cold Brew was also influenced by the fact that we share the same values. We are both working towards the bright future of coffee. Our operations take into account the entire value chain, and our sustainability work extends from the bean all the way to the cup. That’s why it’s so great that Mode is also committed to sustainable development. The company donates money from each product sold to a project ensuring the availability of clean drinking water in the areas of Africa where the company gets the Arabica coffee beans used in its product.”

Partnership to speed up product development and availability

Mode Cold Brew was started in 2016 by Fabian Wendt and Sean Eriksson. Avicii Music AB contributed with the initial capital. Paulig now owns 51 per cent of the company and is on the company’s board of directors. Mode Cold Brew will continue its independent, entrepreneur-led operations after the transaction. Cooperation with Paulig offers Mode Cold Brew an opportunity to broaden its operations and gain support from Paulig in product development, quality assurance and sustainable sourcing of coffee beans. Paulig will act as the distributor of Mode Cold Brew coffee in Finland and the Baltic countries. Distribution will be strengthened during the year in Sweden, primarily in the Stockholm area, where the product had a successful trial sales period in autumn 2017.

“The idea for Mode Cold Brew coffee came from a desire to clean up the beverage industry. We wanted to offer a product that would be tasty and refreshing but would not contain sugar, sweeteners or additives. Fruity Mode Cold Brew coffee, made from African coffee beans, has become very popular with consumers who value a healthy and natural product that also tastes great,” says Fabian Wendt, CEO of Mode Cold Brew.

“I’m excited to see what the partnership brings. I believe that as partners we have an opportunity to learn new things and develop together. It’s great that this partnership will allow us to broaden our operations and offer our product to more people than before,” Wendt continues.

Mode Cold Brew is best enjoyed cold and on the go

Mode Cold Brew coffee is currently available in glass bottles (250 ml) in well-stocked grocery stores and cafés in Sweden. In Finland, Mode Cold Brew coffee is sold at Paulig Kulma in Helsinki city centre, and the refreshing premium product will be available in the summer at consumer events as well as selected restaurants and cafés.

Mode Cold Brew coffee is prepared through cold brewing over night, doing so time replaces heat. The finished coffee beverage is low in acidity and has a balanced, smooth and fresh flavour. A bottle contains 190 mg of caffeine and serves equally well as a breakfast beverage, an energy drink before a workout or as an alcohol-free alternative on a late night. Mode Cold Brew is best enjoyed ice-cold.

Further information:
Paulig: Elisa Markula, Managing Director of Paulig Group’s Coffee Division, tel. +358 (0)9 319 8686
Mode Cold Brew: Fabian Wendt, CEO of Mode Cold Brew, tel. +46 70 865 26 64

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About Paulig Group
Paulig is a family-owned, international enterprise in the food industry that is noted for its high-quality brands and services. The company’s key divisions are Coffee, World Foods & Flavouring, Snack Food and Naturally Healthy Food. Our brands are Paulig, Santa Maria, Risenta, Gold&Green and Poco Loco. Paulig has 1,900 employees in 13 countries and its net sales were EUR 917 million in 2016. www.pauliggroup.com 

Paulig Group’s Coffee division is the market leader in Finland and the Baltic countries and in Russia it is the second-biggest supplier of roasted coffee. Paulig supplies its products and services to the retail trade, the HoReCa sector and workplaces through the Paulig Professional business unit. In Finland, Paulig's best-known brand products include Juhla Mokka, Presidentti, Paulig Brazil and Paulig Mundo as well as the coffee beverage Paulig Frezza and the drinking chocolate beverage Paulig Tazza. The most popular products on the Russian and Baltic markets are the Presidentti and Paulig Classic coffees and Paulig espresso products. The most recent addition to the coffee product family is Mode Cold Brew coffee that is sold in the Finnish, Swedish and Baltic markets. The company's coffee roasteries are located in Vuosaari in Helsinki, in Porvoo in Finland and in Tver in Russia. The Vuosaari roastery produces some 100 million packages of coffee or roughly 45 million kilos of coffee per year.