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Saturday 23 November 2024
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Excel London relaunches Costa Coffee stores as part of ongoing investment plan

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Costa Coffee Tarleton Excel London
Costa Coffee logo

LONDON, UK – Excel London and Costa Coffee have unveiled their refreshed in-venue stores, featuring a host of new features, including modern touch screen ordering systems, which are designed to elevate the customer experience and add convenience. With thousands of visitors attending Excel London every month, the venue prioritises efficiency and speed.

Furthermore, the stores refresh forms part of Costa Coffee’s plans to continually invest in its stores, team members, and customers, helping to give a boost to cities of which it is proud to be a part. The upgrades to both Costa Coffee stores focus on innovative technologies to streamline the ordering process, ensuring more customers can place their order seamlessly to receive their favourite coffee quicker than ever.

New touch screen ordering systems allow for seamless ordering, while additional coffee machines have been installed to expedite service during peak hours. Both stores are also pioneering the use of staff headsets, making them the first non-Drive Thru Costa Coffee stores to implement this communication technology, further enhancing the baristas’ ability to serve customers more efficiently.

In addition to these technological advancements, the stores have received an uplifted new design, with a modern look and comfortable furniture added, creating a welcoming space for guests to unwind.

The two refreshed stores form part of Excel’s continued £350 million investment strategy. Simon Mills, Excel’s Chief Commercial Officer commented: “With four million visitors a year and that figure set to grow with the opening of our new Waterfront destination, Excel has been continually investing in its venue, infrastructure and facilities.

We know how important quality and timely F&B is to our time-conscious visitors and, of course, the importance of networking over a good cup of coffee. Working with the Costa Coffee team, we believe we have created a modern, cutting-edge environment for our guests and most importantly of all, providing the fastest possible service.”

Luke Shaughnessy, Regional Operations Director from Costa Coffee comments: “We’re excited to refresh our two stores at Excel London, empowering our talented baristas with the tools and training to ‘excel’ in this busy event venue. We’re committed to delivering exceptional service, ensuring that more customers can enjoy their favourite Costa coffee, whether that is on the go, or enjoyed whilst relaxing in-store.”

As well as its F&B and digital investments, Excel has embarked on major new developments including its forthcoming 25,000sqm expansion and its new waterfront entertainment district Immerse LDN.

The Coca-Cola Company announces new reporting lines for Costa Coffee

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Coca-Cola
The Coca-Cola Company logo

ATLANTA, USA – The Coca-Cola Company announced today that innocent Drinks and Costa Coffee will report to the company’s Europe operating unit, effective Jan. 1, 2025. These organizational changes are intended to streamline and simplify the current structure. There are no significant numbers of employment changes, as the vast majority of current roles will continue.

The Global Ventures group was established in 2019 primarily to oversee the company’s ownership of Costa, innocent and Dogadan, as well as the company’s investment in Monster Beverage Corp.

“As we look to our next chapter of growth, we have evaluated how to best set ourselves up for future success with these growth areas, and we believe now is the right time to have them work more directly with our operating units,” said Coca-Cola President and Chief Financial Officer John Murphy.

What’s changing

The following changes take effect Jan. 1, 2025.

  • Innocent, a 25-year-old, London-based maker of juices and smoothies, will report to the Europe operating unit. Coca-Cola has had an ownership stake in innocent since 2009. Innocent drinks are sold across Europe.
  • Costa will remain a stand-alone business and will report to the Europe OU. Costa is based in London, and the majority of the company’s retail and Express outlets are located in the United Kingdom and elsewhere in Europe. Costa’s ready-to-drink businesses outside of Europe will report through local operating units.
  • Dogadan, a Türkiye-based tea business that was founded in 1975 and in recent years has closely collaborated with the Costa business, will report into Costa’s retail business in Europe. Dogadan has been part of Coca-Cola since 2007.
  • Oversight of Coca-Cola’s investment in Monster will move to Murphy, while the respective geographies will be responsible for the underlying operations results.

Global Ventures is currently a separate operating segment. Global Ventures will be sunset as part of the reorganization, and the company will issue financials for 2022 through 2024 to reflect the changes. The recast data will be available publicly in early 2025.

% Arabica welcomes Mario C. Bauer as non-exclusive director

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Japanese % Arabica Toronto
% Arabica logo

KYOTO, Japan – % Arabica, one of the world’s leading specialty coffee brands, is pleased to announce the appointment of Mario C. Bauer as a non-executive director and board member, effective November 1, 2024. Bauer, a renowned expert in international franchising, will play a pivotal role in further strengthening % Arabica’s global expansion within the specialty coffee market.

Kenneth Shoji, founder of % Arabica, commented: “We are delighted to welcome Mario to the team. His extensive expertise in international franchising will undoubtedly help elevate % Arabica to new heights. Until now, we have grown the business through trial and error, but Mario’s involvement marks the beginning of a new chapter for the brand. We are fortunate to have him on board and look forward to a lasting partnership.

Mario C. Bauer, a long-time admirer of the brand, expressed his enthusiasm: “Having been a fan of % Arabica since its early days and observing its global growth, I am thrilled to join this founder-driven company.

Ken is a true entrepreneur, and I have always admired innovators within the industry. I look forward to contributing my energy and passion to the brand and working alongside Ken and his team on this exciting journey.”

This appointment marks an important milestone for % Arabica, as it continues to expand its global presence with new stores planned across Europe, North America, and Asia. Under Mario C. Bauer’s guidance, the brand is well-positioned to further solidify its standing as a leader in the specialty coffee industry.

About % Arabica

Founded in 2013 by Kenneth Shoji, it has become an iconic coffee brand known for its minimalist design and exceptional coffee experience. With over 200 stores worldwide, the brand invites coffee lovers everywhere to “See the World Through Coffee.”

Stōk Cold Brew launches a new energy brew that packs a punch

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STōK Cold Brew Energy
STōK Cold Brew Energy

LOUISVILLE, Colo., USA – STōK Cold Brew Coffee, a leader in the multi-serve Ready to Drink coffee category, is entering bold new territory with the launch of NEW STōK Cold Brew Energy. This latest offering packs a powerful mix of smooth, quality coffee, focus-boosting caffeine plus B-vitamins, ginseng and guarana into a single can to give you an extra kick in the a** (and prefrontal cortex!) when you need it most. Keep STōK Cold Brew Energy on hand when focus is lagging, “to-do” lists beckon, and your inbox simply won’t stop pinging.

STōK Cold Brew Energy isn’t an energy drink, and it certainly isn’t just ‘coffee in a can’—it’s an energy coffee. That means it’s still packed with the bold, smooth taste you’ve come to expect from STōK Cold Brew, supplemented with 195mg of caffeine and a trio of B-vitamins, ginseng, and guarana. It’s like a pep talk you can crack open any time of day, to help you get that W.

The only question left to ask: What flavor will fuel your focus? With STōK Cold Brew Energy, you have three delicious varieties to choose from: Mocha Cream, Vanilla Cream, and Caramel Cream. Regardless of your personal preference, every sip is sweet, creamy bold and cold… only with that added kick to help you power through the day like a boss.

“Keeping a close watch on how coffee trends are changing, we’re thrilled to bring STōK Cold Brew Energy to the boldest coffee drinkers out there – delivering the coffee-forward flavor our brand fans love, with a boost of caffeine,” said Brittney Polka, Vice President of Ready to Drink Beverages at Danone North America.

“STōK fans have long loved enjoying our multi-serve format at home, but we also know that their lives are busy, and they are constantly on the go. Each can of the latest and greatest from STōK is packed with smooth flavors and 195mg of caffeine to help support their focus — wherever their day takes them.”

STōK Cold Brew Energy is now available in 11oz cans at 7-Eleven and Speedway stores and will be rolling out at additional retailers nationwide in 2025.

Chobani Taps Industry Veteran Jai Kibe as Chief Marketing Officer

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Chobani
Chobani logo

NEW YORK and NEW BERLIN, N.Y., USA – Chobani, LLC announces the appointment of Jai Kibe as Chief Marketing Officer, effective November 4, 2024, reporting to President and COO, Kevin Burns. Kibe will lead the marketing and creative teams for the Chobani and La Colombe brands.

In this role he will focus on expanding growth-segments, driving marketing innovations, developing next generation analytics and consumer insights capabilities, enhancing digital first consumer and customer engagement, and creating dynamic activations and partnerships.

“Jai is known for inspiring creativity, energizing brands, and bringing a disciplined, metrics-based approach to strategy,” said Burns. “His leadership will be instrumental in driving the next phase of our growth as we work to expand awareness beyond today’s core consumer segments. I’m excited to partner with Jai to create deeper and more meaningful consumer connections to unleash the potential of the Chobani and La Colombe brands.”

A veteran marketing professional with over 23-years of experience working across numerous global companies, Kibe has held senior marketing roles at Gartner, SC Johnson, The Coca-Cola Company, among others. Kibe has transformed both iconic as well as challenger brands, delivering sustained profitable growth and strengthening brand equity.

“I am thrilled to be joining Chobani at an exciting moment in time, where we can blend art, science and instinct,” said Kibe.

“As a brand that combines purpose with innovation, Chobani has consistently set the standard for great taste, consumer health and wellness while driving positive social impact. I look forward to working with this incredibly talented team to continue shaping the future of the food and beverage industry, while staying true to Chobani’s mission of making good food available to more people while positively impacting our communities and planet.”

Kibe earned his MBA in Marketing from Pepperdine University and is currently further enhancing his expertise in digital programming and automation through ongoing education at Northwestern University’s Kellogg School of Management.

Starbucks reports falling global sales, anticipates fundamental changes in its strategy, removes Oleato line in North America

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Starbucks Skip Québec
The Starbucks logo

MILAN — Starbucks reported financial results for its 13-week fiscal fourth quarter and 52-week fiscal year ended September 29, 2024, on Wednesday after market close. The results had already been partially anticipated last week. For Q4 Fiscal Year 2024, global comparable store sales declined 7%, driven by an 8% decline in comparable transactions, partially offset by a 2% increase in average ticket. Final Q4 results missed key metrics across the board, from same-store sales and revenue to adjusted earnings per share.

North America and U.S. comparable store sales declined 6%, driven by a 10% decline in comparable transactions, partially offset by a 4% increase in average ticket

International comparable store sales declined 9%, driven by a 5% decline in average ticket and a 4% decline in comparable transactions; China comparable store sales declined 14%, driven by an 8% decline in average ticket and a 6% decline in comparable transactions

The company opened 722 net new stores in Q4, ending the period with 40,199 stores: 52% company-operated and 48% licensed

At the end of Q4, stores in the U.S. and China comprised 61% of the company’s global portfolio, with 16,941 and 7,596 stores in the U.S. and China, respectively

Consolidated net revenues declined 3%, including on a constant currency basis, to $9.1 billion

GAAP operating margin contracted 380 basis points year-over-year to 14.4%, primarily driven by deleverage, investments in store partner wages and benefits, and increased promotional activity. This contraction was partially offset by pricing and in-store operational efficiencies.

Non-GAAP operating margin contracted 380 basis points year-over-year to 14.4%, or contracted 370 basis points on a constant currency basis

GAAP earnings per share of $0.80 declined 25% over prior year

Non-GAAP earnings per share of $0.80 declined 25% over prior year, or declined 24% on a constant currency basis

Starbucks Rewards loyalty program 90-day active members in the U.S. totaled 33.8 million, up 4% year-over-year and flat quarter-over-quarter

Starbucks: Full Fiscal Year 2024 Highlights

  • Global comparable store sales declined 2%, driven by a 4% decline in comparable transactions, partially offset by a 2% increase in average ticket
    • North America and U.S. comparable store sales declined 2%, driven by a 5% decline in comparable transactions, partially offset by a 4% increase in average ticket
    • International comparable store sales declined 4%, driven by a 4% decline in average ticket; China comparable store sales declined 8%, driven by an 8% decline in average ticket
  • Consolidated net revenues increased 1%, including on a constant currency basis, to $36.2 billion
  • GAAP operating margin contracted 130 basis points year-over-year to 15.0%, primarily driven by investments in store partner wages and benefits, deleverage, and increased promotional activity. This contraction was partially offset by pricing and in-store operational efficiencies.
    • Non-GAAP operating margin contracted 110 basis points year-over-year, including on a constant currency basis, to 15.0%
  • GAAP earnings per share of $3.31 declined 8% over prior year
    • Non-GAAP earnings per share of $3.31 declined 6% over prior year, including on a constant currency basis

“It is clear we need to fundamentally change our strategy to win back customers. ‘Back to Starbucks’ is that fundamental change,” commented Brian Niccol, chairman and chief executive officer. “My experience tells me that when we get back to our core identity and consistently deliver a great experience, our customers will come back. We have a clear plan and are moving quickly to return Starbucks to growth,” Niccol added.

CFO Rachel Ruggeri shared the company will “reduce the number” of “new stores and renovations in fiscal year 2025” to focus on “reestablishing Starbucks as the community coffee house.”

Niccol on Wednesday told investors that he plans to overhaul Starbucks U.S. locations, adding more comfortable seating, ceramic mugs and a coffee-condiment bar, with customer wait times of less than four minutes.

He said the team is in the process of simplifying the menu for beverage and food.

Among the first beverages to be removed from the menu are the three olive oil-based coffee drinks from the Oleato line, which will still be sold only in some outlets in Italy, Japan and China.

Starbucks rolled out the Oleato drinks across North America less than a year ago, after initially being sold in Italy.

The products were created by Starbucks founder Howard Schultz, who said he was inspired by a visit to the olive groves of Sicily.

“While this decision was made prior to Brian Niccol taking the role of CEO, the decision to remove the beverages aligns with his strategy to simplify our menu,” a Starbucks spokesperson said.

Beginning on Nov. 7, Starbucks will also eliminate the extra charges for non-dairy milk at North American locations it owns.

Fiscal Year 2025 Financial Targets

As stated in our October 22, 2024 announcement, given the company’s ceo transition coupled with the current state of the business, guidance is suspended for full fiscal year 2025. We believe this will allow ample opportunity to complete an assessment of the business and solidify key strategies, while stabilizing and positioning the business for long-term growth. The company will provide initial information regarding its new strategies during its Q4 and full fiscal year 2024 earnings conference call starting today at 2:00 p.m. Pacific Time. Our October 22, 2024 announcement and accompanying prepared remarks from our chairman and ceo can be accessed on the company’s Investor Relations website. The company uses its website as a tool to disclose important information about the company and comply with its disclosure obligations under Regulation Fair Disclosure.

Starbucks announces removal of extra charge for nondairy modifier starting November 7

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Starbucks nondairy
Customers in U.S. and Canada company-owned and operated stores will no longer pay extra for customizing their beverage with nondairy – including soy, oat, almond and coconut beverage (CNW Group/Starbucks Coffee Company)

TORONTO , Canada — Starbucks announced that, starting with the launch of its holiday menu on November 7, the company will no longer charge extra for customizing beverages with a nondairy modifier, making it easier for customers to make their Starbucks beverage their own.

“Core to the Starbucks Experience is the ability to customize your beverage to make it yours. By removing the extra charge for nondairy, we’re embracing all the ways our customers enjoy their Starbucks,” said Brian Niccol, Starbucks chairman and chief executive officer.

Substituting with nondairy – whether its soy, oat, almond, or coconut beverage – in a handcrafted beverage is the second most requested customization from Starbucks customers, behind adding a shot of espresso.

When this change goes into effect on November 7, more than a quarter of Starbucks current customers in Canada who pay to modify their beverage will see a price reduction of more than 10%.

“I made a commitment that we’d get back to Starbucks, focusing on what has always set Starbucks apart – a welcoming coffeehouse where people gather and we serve the finest coffee handcrafted by our skilled baristas,” continued Niccol.

“This is just one of many changes we’ll make to ensure a visit to Starbucks is worth it every time.”

Luckin Coffee posts 3Q net revenues of $1.45 billion (+41%), ends quarter with more than 21,300 stores

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Luckin Coffee Center
Luckin Coffee logo

BEIJING, China – Luckin Coffee Inc. yesterday announced its unaudited financial results for the three months ended September 30, 2024. Total net revenues in the third quarter were RMB10,180.8 million (US$1,452.1 million), representing an increase of 41.4% from RMB7,200.0 million in the same quarter of 2023.

Net new store openings during the third quarter was 1,382, resulting in a quarter-over-quarter store unit growth of 6.9% from the number of stores at the end of the second quarter of 2024, ending the third quarter with 21,343 stores which include 13,936 self-operated stores and 7,407 partnership stores.

Average monthly transacting customers in the third quarter was 79.8 million, representing an increase of 36.5% from 58.5 million in the same quarter of 2023.

Revenues from self-operated stores in the third quarter were RMB7,501.4 million (US$1,069.9 million), representing an increase of 45.9% from RMB5,141.0 million in the same quarter of 2023.

Same-store sales growth for self-operated stores in the third quarter was negative 13.1%, compared to positive 19.9% in the same quarter of 2023.

Store level operating profit – self-operated stores in the third quarter was RMB1,745.6 million (US$249.0 million) with store level operating profit margin of 23.3%, compared to RMB1,185.4 million with store level operating profit margin of 23.1% in the same quarter of 2023.

Revenues from partnership stores in the third quarter were RMB2,341.3 million (US$333.9 million), representing an increase of 27.2% from RMB1,840.8 million in the same quarter of 2023.

GAAP operating income in the third quarter was RMB1,557.5 million (US$222.1 million), representing a GAAP operating margin of 15.3%, compared to RMB961.7 million, or a GAAP operating margin of 13.4%, in the same quarter of 2023. Non-GAAP operating income in the third quarter, which adjusts for share-based compensation expenses, was RMB1,655.6 million (US$236.1 million), representing a non-GAAP operating margin of 16.3%, compared to RMB1,025.5 million, or a non-GAAP operating margin of 14.2%, in the same quarter of 2023.

The Company recognizes the importance of the international market and is actively pursuing global expansion. The international market encompasses diverse regions, each requiring long-term investment before realizing substantial financial returns.

“We have strategically chosen Singapore as the launch point for our international expansion, given its status as a key hub in Southeast Asia,” said Luckin Coffee in a statement.

“Our first store in Singapore opened in 2023, and in the third quarter, we added eight new stores, bringing the total to 45 self-operated stores. We are also actively evaluating opportunities in the United States and other markets. Given the maturity, saturation, and competitiveness of the U.S. coffee market, we intend to approach our expansion strategy there with careful consideration and a disciplined execution plan.

For the nine months ended September 30, 2024, net revenues from Singapore reached RMB91.4 million, while costs and expenses, primarily including store operations, regional expenses, and support costs incurred at headquarters, totaled approximately RMB167.7 million. We remain committed to investing in our international growth, although we do not anticipate profitability in this area in the near term. Similar to our strategy in China, the international business will need to reach significant scale to achieve profitability.”

“I’m pleased to report that Luckin delivered outstanding results in the third quarter of 2024,” said Dr. Jinyi Guo, Chairman and Chief Executive Officer of Luckin Coffee. “With the hard work and dedication of our team and the loyalty of our customers, we achieved record net revenue and operating profit while maintaining a healthy margin. Despite the many coffee options available in China, Luckin remains a preferred choice for customers, as reflected in our record average monthly transaction user count and the addition of 1,382 net new stores. In line with our commitment to invest in a high-quality supply chain and boost efficiency, we also broke ground in August on our new state-of-the-art Innovation and Production Center in Qingdao, a strategically important economic hub in China. Looking forward, we are focused on continuing to expand our market share by offering innovative, high-quality products, enhancing brand recognition, and expanding our footprint.”

Nuova Simonelli at GulfHost with NUOVA Aurelia, Nov. 5-7

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nuova simonelli
Nuova Simonelli at GulfHost (image provided)

BELFORTE DEL CHIENTI, Italy – From 5 to 7 November, Simonelli Group, a leading company in the production of professional espresso machines and grinders, in collaboration with Simonelli Group Middle East, will present the latest innovations from the Nuova Simonelli brand at GulfHost (stand Z4-H40), the fair for foodservice professionals.

The fair will be full of new products and solutions for chains, roasters and restaurants. The Simonelli Group Middle East team (Simonelli Group branch for the Middle East based in Dubai) will be at stand Z4-H40 and will present NUOVA Aurelia to the local market with a special unveiling event scheduled for 5 November at 11:00 am. To participate in the NUOVA Aurelia unveiling event, register on this link.

Nuova Simonelli, the world-renowned brand for its technologically advanced and easy-to-use professional espresso machines, will present NUOVA Aurelia MP and its innovative E-Milk and C-Automation technologies at GulfHost.

These technologies automate the workflow and make it possible for anyone to prepare delicious coffee and milk-based drinks simply, quickly and without waste.

NUOVA Aurelia MP is a professional multi-boiler espresso machine that guarantees great precision and control over extraction and manages different coffee profiles thanks to its independent group system.

gulfhost
NUOVA Aurelia at GulfHost (image provided)

Its advanced technologies offer an extensive coffee and milk-based menu, great beverage consistency, and reduced daily operations and waste.

The E-Milk technology allows automatic milk frothing with up to nine customisable recipes, requiring the operator to simply press a button to obtain perfect cream without the need for specific training.

The C-Automation (coffee automation) technology connects the machine and the grinder, which share the same recipes through the portafilter. Furthermore, C-Automation, through an Artificial Intelligence algorithm, controls the flow of the dispensed coffee and automatically adjusts the grinder to guarantee a consistently high-quality result.

nuova aurelia
NUOVA Aurelia and the C-Automation technology (image provided)

In this way, the technology enables the workflow speed to be increased by up to 20% and guarantees the quality of the beverage, limiting the human error due to the operator and also reducing coffee waste incurred in recipe setup. With C-Automation, training times and costs are also reduced because the system is automated.

At GulfHost, Nuova Simonelli will also present Appia Life XT, the single-boiler espresso machine for medium productivity that offers additional technologies for greater extraction control.

The novelty of Appia Life XT, in addition to the brand new metallic grey colour, is the introduction of the PID, a technological solution that makes it even more thermally stable and ensures superior consistency. The simplicity of use and reliability of Appia Life continue to win over roasters, chains and venues worldwide.

Also on display at GulfHost will be Prontobar Touch, the super-automatic machine ideal for those who want high-quality, high-productivity espresso, cappuccino and other beverage machines in hotels, lounges, airports and offices, but which are also extremely easy to use and compact in size.

Prontobar Touch has a 7″ touchscreen display that offers greater flexibility and interaction, making it possible to set up to 20 different beverages. The grinders are made with new technologies that use special steel alloys to guarantee longevity. The Easycream technology, on the other hand, allows you to froth milk automatically at the right temperature and with the correct amount of cream, just like a professional barista.

Browne Jacobson advises coffee roaster 200 Degrees on acquisition by the Caffè Nero Group

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Browne Jacobson
Browne Jacobson logo

NOTTINGHAM, UK – UK & Ireland law firm Browne Jacobson advised coffee roaster 200 Degrees on its acquisition by the Caffè Nero Group. 200 Degrees was established in 2012 and has 21 stores across the North and the Midlands. Its early success drew attention from investors, with 200 Degrees being backed by a £3m investment from Foresight in 2017.

With this acquisition, 200 Degrees will remain operating as a standalone brand, and will sit alongside Caffè Nero Group’s other brands – Caffè Nero, Harris+Hoole, Aroma and Coffee#1. The international coffee giant is looking to grow the 200 Degrees brand as a part of its UK growth strategy.

The Browne Jacobson team included partners Sam Sharp and Matt Bolton and associate David Burdon, with senior associate Rebecca Burge advising on tax matters.

Sam Sharp, Partner at Browne Jacobson, said: “This acquisition by the Caffè Nero Group is a testament to value of the 200 Degrees and its continued successes in the past decade.

We’re thrilled to have advised Stephen and the team on the next phase on their growth journey, and we look forward to seeing them expand across the UK.”

Stephen Fern, Managing Director at 200 Degrees said: “We are thrilled that the strong market position and growth potential of 200 Degrees has been recognised within the sector, and we are excited to see where our brand can go now that we have become part of the Caffè Nero Group family.

Sam and the Browne Jacobson team have gone above and beyond for us in this transaction. Their M&A expertise and knowledge of the food and drink sector are second to none – both integral to getting this over the line for us.”