The Nero Group is continuing its expansion by adding another brand to its portfolio as it acquires London-based 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, including Blackfriars, Brighton, Guildford, and Woking. It provides what is described as a ‘specialty coffee offering’ with the coffee supplied by East London-based Plot Roasting. FCB also offers a food menu including vegan coconut porridge, smoked bacon ciabattas, cakes, and pastel de natas to name a few.
The Nero Group said the acquisition will bolster its travel and transport business and means it now has more than 50 locations in train and underground transport hubs in the United Kingdom.
Overall, the group has 790 stores in the UK and more than 1,100 stores across 10 countries. Its portfolio includes Caffe Nero, Coffee #1, Harris + Hoole, and Aroma as well as the recently acquired Nottingham-based coffee brand 200 Degrees which was bought as part of Nero’s ongoing mission to develop premium, speciality coffee brands.
The business 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.
“I’m very pleased to bring FCB into our Group,” said The Nero Group founder and CEO Gerry Ford. “Its stores offer commuters in transport locations very high quality coffee. This is part of our strategy to provide customers with premium coffee no maer where they might be. As the coffee market develops, we continue to be focussed on the premium, specialty coffee category.”
The acquisition comes shortly after Starbucks Coffee Company acquired franchisee 23.5 Degrees in a move which significantly expanded its company-owned footprint in the UK.
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