Wed 6th Nov 2024 - Caffe Nero acquires transport hub coffee business FCB Caffe Nero acquires transport hub coffee business FCB: The Nero Group, the Gerry Ford-led, premium coffee house business, has acquired transport hub coffee business FCB Coffee. FCB was founded in 1998 when it opened its first kiosk in London. The business has developed over the years and now has 11 locations in travel hubs across London and the south east. FCB provides a specialty coffee offering that gives commuters the option of purchasing high-quality coffee while in transit. The Nero Group – which includes Caffe Nero, Coffee#1, 200 Degrees, Harris + Hoole and Aroma – said it is acquiring FCB Coffee to bolster its travel and transport business. The acquisition means The Nero Group now has more than 50 locations in train and underground transport hubs in the UK. Overall, The Nero Group has 790 stores in the UK and more than 1,100 stores across ten countries. The group is still managed by its original management team and specialises in developing brands with an entrepreneurial spirit. Ford said: “I’m very pleased to bring FCB into our group. Its stores offer commuters in transport locations very high quality coffee. This is part of our strategy to provide customers with premium coffee no matter where they might be. As the coffee market develops, we continue to be focused on the premium, specialty coffee category.” In March this year, FCB told Propel it was aiming to more than double its portfolio by 2028 and expand into new regions, FCB, which started a partnership with Network Rail in 2020 and is one of the first independent coffee offerings in stations, opened its latest site at Clapham Junction station in the summer. “Over the next five years, we see an opportunity to grow to 25 sites,” founder and managing director Barney Clevely told Propel. “With the right opportunities, we will expand beyond the south east. We see a huge amount of opportunity in the travel sector, and we have become recognised as the speciality coffee providers in this sector.” The 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. Last week, Propel revealed The Nero Group had acquired 200 Degrees, the Foresight-backed coffee roaster and retailer. Earlier this year, Propel revealed 200 Degrees, which was founded in 2012 by Rob Darby and Tom Vincent and has just secured its 22nd site, in Castleford, West Yorkshire, had appointed AlixPartners as it explored the next stage of its growth. Caffè Nero features in the Premium Club Turnover & Profits Blue Book, which is available exclusively to Premium Club members and features 994 companies. Caffe Nero’s turnover of £531.4m is the 28th 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.