Tesco's artisan coffee business Harris + Hoole has seen its pre-tax loss double, following a rapid expansion of the business.
The trendy chain opened 22 new shops in the most recent financial year, taking the total number of stores it has to 45.
The business posted a pre-tax loss of £25.6 million in the year ending 1 March 2015, compared to £12.8m for the year ending 23 February 2014, accounts held at Companies House reveal.
The accounts also reveal that the business is set to need £6m of further funding from Tesco up to the end of 2017 in order to meet its financial obligations.
Speaking in the report accompanying the accounts, the directors noted: 'The UK coffee market is highly competitive and already served by a number of international, national and local competitors.'
Tesco has reportedly so far committed to continue to provide financial support for at least another 12 months, and has said it intends to support up to £7.5m of funding, according to the Daily Telegraph.
The supermarket is also not seeking the repayment of its existing £48m loan to Harris + Hoole, and the interest it is owed by the business for the next 12 months.
Tesco’s former chief executive Philip Clarke identified the business' investment in Harris + Hoole as an opportunity to drive footfall into its Tesco Extra stores, as well as it providing an opportunity to tap into the growing casual dining scene.
The man previously in charge of Tesco’s collection of in-store restaurants and coffee shops, Michael Holmes, was ousted in March as part of new CEO Dave Lewis’ personnel clearout.
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