MILAN – The Nero Group, which operates the Caffè Nero, Harris+Hoole and Aroma brands, has reached an agreement to acquire SA Brain’s remaining 33% stake in Coffee#1. The Group and one of its supportive shareholders originally bought 67% of Coffee#1 in 2019 from brewery and hospitality company S.A. Brain. The latter has since been acquired by Marston’s.
Coffee#1 operates 102 stores across Wales, the Midlands and Southern England and opened its first store in 2011. It sells hot beverages as well as a range of baked goods including baps, toasties, paninis, tarts, wraps and cakes.
Since buying the majority share of the business in 2019, the Group has managed the Coffee#1 brand, growing the business from 92 stores to 102 stores today.
The group said Coffee#1 had averaged 104% of pre-pandemic sales over the last four months and the plan was for it to continue to operate as a standalone brand alongside the Nero Group’s other brands.
The recent refinancing process completed in January 2022 by The Nero Group has given it a platform for growth going forward. The acquisition of Brain’s minority stake in Coffee#1 is part of the Group’s strategy of pushing ahead with its growth ambitions.
Gerry Ford, Founder and Group CEO of The Nero Group and the Caffè Nero brand, commented: “We’ve been delighted with the performance of the Coffee#1 business since it joined our Group in 2019. It is a fantastic brand with an emphasis on great coffee and service combined with a local community-based feel, which matches perfectly with the ethos of The Nero Group.
As we emerge from the pandemic, our intention is to return to growing stores in our Group and investing in growth opportunities. Coffee#1 is very much part of that thinking. Acquiring Brain’s remaining position is the first step of this post- refinancing growth phase.”
