200 Degrees sign outside one of its coffee shops

Source: 200 Degrees

Nottingham-based coffee brand 200 Degrees has been bought by The Nero Group for an undisclosed sum.

Founded in 2012 in Nottingham by Rob Darby and Tom Vincent, 200 Degrees has grown to operate 21 stores across the Midlands as well as its own roastery, barista schools, and e-commerce channel selling directly to customers at home. The business also operates a wholesale arm which serves 500 customers, with several bakeries, including Birds Bakery, among them.

Following the acquisition, 200 Degrees will continue to operate as a standalone business but will sit alongside The Nero Group’s other brands – Caffè Nero, Coffee#1, Harris+Hoole and Aroma.

The Nero Group said it aims to expand the brand as part of its growth strategy in the UK and also in line with its ongoing mission to develop premium, speciality coffee brands across the world. The Group now has over 790 stores in the UK, and approximately 1100 stores across 10 countries.

It was sitting in the number five spot as part of British Baker’s Bakery Market Report 2024 – around 400 stores fewer than Starbucks in the number four position. The mix of its portfolio has shifted with the number of Coffee#1 sites increasing but Harris & Hoole’s numbers decreasing in 2023 after an agreement between The Nero Group and Tesco came to an end.

The Nero Group founder and group CEO Gerry Ford described 200 Degrees as a “fantastic brand with an emphasis on great coffee and service combined with a local community-based feel”.

“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 The Nero Group,” Ford said.

Stephen Fern, 200 Degrees managing director, 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 Nero Group family.

“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.”

It comes shortly after Starbucks Coffee Company acquired franchisee 23.5 Degrees in a move which significantly expanded its company-owned footprint in the UK.