UAE – Hospitality group and investment firm Shamal Holdings has expanded its food and beverage portfolio with a majority stake acquisition of award-winning specialty coffee brand The Espresso Lab.

The financial specifics of the deal have not been disclosed to the public.

Shamal, which also serves as the master franchisee for the US fast-food chain Five Guys in the UAE, stated that its investment will bolster The Espresso Lab’s retail and wholesale expansion, including enhancing its roastery production capacity, which currently stands at 35 tons per month.

Abdulla Binhabtoor, CEO of Shamal, noted, “We invest in brands that embody Dubai’s entrepreneurial spirit and dedication to excellence. The Espresso Lab perfectly aligns with these values, and we are confident that this partnership will lead to significant growth and a stronger market position.”

In a press release, Shamal confirmed that The Espresso Lab will remain under the leadership of Al Mallouhi.

This partnership with Shamal is a testament to our success and reputation. We are thrilled to expand our offerings and bring the world’s finest coffee experiences to more coffee enthusiasts,” Al Mallouhi remarked.

Founded in 2015 by Emirati entrepreneur Ibrahim Al Mallouhi, The Espresso Lab currently operates a roastery in the Dubai suburb of Al Quoz and has two cafés located in Dubai and Abu Dhabi.

The Espresso Lab sources specialty coffee from eight countries and offers an exclusive selection of super-premium packaged coffees online, priced from AED 300 (US$81) for an Ethiopian Gesha Village to AED 930 (US$253) for a Hacienda La Esmeralda Geisha from Panama.

Precision-roasted coffee is sold directly to consumers through both physical and online stores, as well as through its wholesale operations network. In addition to the retail outlet at its roastery in Al Quoz, the brand has locations in Dubai Design District and Qasr Al Hosn in Abu Dhabi.

This investment marks Shamal’s second significant hospitality venture in the past 12 months, following its full acquisition of high-end restaurant group Sushisamba in December 2023.

Having held a 50% stake in the Japanese-Latin American-inspired fine-dining group since 2014, the deal allowed Shamal to gain complete control over the high-end brand’s nine locations across the UK, the US, Bahrain, Qatar, the UAE, Saudi Arabia, and Singapore.

Sign up to receive our email newsletters with the latest news updates and insights from Africa and the World HERE