Privately-owned, 22-year-old Allpress Expresso - which sells about 24 tonnes of coffee beans in the South Island each year - will invest between $700,000 and $1 million in Dunedin, and up to $1 million in London.
The company, which has supplied beans to some 20 Otago outlets for more than 10 years, is scheduled to open a roastery and expresso bar in Emily Siedeberg Pl near the University of Otago by March.
Mr Allpress visited Dunedin recently and said the Dunedin expresso bar and roastery was the sole focus of expansion in Otago, other than becoming the supply base to continue delivering beans to its existing 50 South Island customers.
"The cornerstone has been our training programme; roasting, bagging and shipping out . . . being able to maintain quality control over the end product," said Mr Allpress.
The Dunedin operation would have about 10 staff, including five baristas and roastery, technical and administration staff, and would include a replication of its Auckland training programme.
Allpress Expresso beans are sourced from Brazil, Costa Rica, Papua New Guinea, Sumatra in Indonesia and Guatemala under "relationship coffee" buying which is separate from the international commodity markets and includes a "social premium" payment for coffee farmers.
Allpress Expresso started from a coffee cart at Auckland University 22 years ago and now employs 36 people at its Auckland roastery and cafe and 36 in Sydney, supplying beans to 500 hospitality outlets in New Zealand and Australia.
Last week, Allpress Expresso was one of three winners from 100 entries in Auckland University's inaugural Entrepreneurs' Challenge, and will receive a share of $1 million in favourable loans to assist with international expansion, targeting an up to $1 million investment in a new flagship roastery and espresso bar in London.
The award was a $3 million gift to the University of Auckland Business School by expatriate New Zealander and international financier Charles Bidwill.
When asked about capital requirements for expansion, Mr Allpress said the company was not considering any private placements, franchising or a stock exchange listing, but did not entirely rule out any of those options in the future.
