Mon 28th Oct 2024 - Exclusive: Caffe Nero Group acquires 200 Degrees Exclusive – Caffe Nero Group acquires 200 Degrees: Caffe Nero Group, the Gerry Ford-led, premium coffee house business, has acquired 200 Degrees, the Foresight-backed coffee roaster and retailer, Propel has learned. Earlier this year, Propel revealed 200 Degrees, which was founded in 2012 by Rob Darby and Tom Vincent and currently operates 21 sites, had appointed AlixPartners as it explored the next stage of its growth. In addition to stores, 200 Degrees has its own roastery and operates an online e-commerce channel selling directly to customers at home, including a subscription offering. 200 Degrees also operates a wholesale arm, serving more than 500 customers. Foresight invested £3m to acquire a stake in the then six-strong 200 Degrees at the end of 2017. 200 Degrees will sit alongside Caffe Nero Group’s other brands: Caffè Nero, Coffee#1, Harris+Hoole and Aroma, making it the fifth brand in the group. The Nero Group aims to expand the 200 Degrees brand as part of its growth strategy in the UK. Caffe Nero Group said it has acquired 200 Degrees in line with its ongoing strategy to develop premium, high quality, speciality coffee brands across the world. The group now has more than 790 stores in the UK, and approximately 1,100 stores across ten countries. Ford said: “I’m delighted to welcome 200 Degrees into the Caffè Nero family. It is a fantastic brand with an emphasis on great coffee and service combined with a local community-based feel that matches perfectly the ethos of Caffe Nero Group. 200 Degrees has a solid, loyal customer base and has developed a strong regional position. Our intention is to support 200 Degrees to continue its growth journey and allow the brand to operate separately alongside the other brands in Caffe Nero Group.” 200 Degrees managing director Stephen Fern added: “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 Caffe Nero Group family. Caffe Nero Group is a great partner for us with its commitment to premium coffee and its strong values as a family-owned company. 200 Degrees itself is a premium brand with a commitment to delivering great experiences. The four pillars of our business – our shops, wholesale, e-commerce platform and barista schools – have been bringing better coffee to millions of people across the UK for the last 12 years, delivering excellent customer service and a commitment to breaking down the barriers within speciality coffee. With this new partnership, we look forward to introducing even more people to our beans, our people and our passion for creating experiences to remember.” Earlier this month, Fern told Propel that its sales were up 24% this year and that it aims to open two new sites in its current financial year. It came as 200 Degrees reported turnover increased to a record £16,452,509 for the year ending 31 March 2024 compared with £13,122,758 the previous year. Pre-tax losses narrowed to £90,680 from £158,256 the year before. Fern told Propel: “The first and second quarters have been heavily focused on driving a new food strategy, increased operational efficiency alongside accelerating growth across our wholesale, barista schools and online pillars. We have seen 24% year-on-year growth as a result of this.” Last month, Caffe Nero Group said it had delivered its strongest first quarter sales growth for five years. Sales in the three months to the end of August were 12.5% higher year on year, with like-for-like sales up 9.1%. The company, which opened nine new stores in the UK and Ireland during the period, reported record sales for the first three months of its financial year of £147m, driven by “very strong” sales growth in the UK of 12.5% year on year and 13.4% year-on-year sales growth at group level. Like-for-like sales in the UK were 9.1%. In July, Caffe Nero Group, which has more than 10,000 employees, reported like-for-like sales growth of 8.4% in the year to 30 May 2024. The business saw record sales of $690m (£531.4m) for the year, with overall sales up by 10%, during a period in which it opened 63 new sites. 200 Degrees features in the Premium Club Turnover & Profits Blue Book, which is available exclusively to Premium Club members and features 994 companies. 200 Degrees’ turnover of £16,452,509 is the 539th highest in the database. Companies can now have an unlimited number of people receive access to Propel Premium for a year for £995 plus VAT – whether they are an operator or a supplier. The single subscription rate is £495 plus VAT for operators and £595 plus VAT for suppliers. Email kai.kirkman@propelinfo.com to upgrade your subscription.