The Nero Group has taken full control of Coffee#1 after purchasing the remaining 33% stake in the business from Welsh brewery, S.A. Brain
Caffè Nero has been "delighted" with the performance of Coffee#1 since taking a majority stake in the business in 2019 | Photo credit: The Nero Group
Caffè Nero has fully acquired UK coffee chain Coffee#1. The Nero Group, which operates the Caffè Nero, Harris+Hoole and Aroma brands, purchased the remaining 33% stake in Coffee#1 from Welsh brewery S.A. Brain, adding to the 67% stake it originally bought in 2019.
Coffee#1 will continue to operate as a standalone brand within The Nero Group. In a press release, Caffè Nero said Coffee#1 had demonstrated robust performance in recent months and had been “quick rebound from the pandemic following the removal of restrictions.”
Over the last four months, Coffee#1 averaged 104% of pre-pandemic sales, Caffè Nero added, with the chain now operating 102 stores across the UK – ten more than when Caffè Nero first invested in the business.
The acquisition follows the completion of Caffè Nero’s £330m ($453m) debt refinancing in January 2022, which saw the UK coffee chain end a takeover bid
by petrol station forecourt operator, EG Group
“We’ve been delighted with the performance of the Coffee#1 business since it joined our Group in 2019. It is a fantastic brand with an emphasis on great coffee and service combined with a local community-based feel, which matches perfectly with the ethos of The Nero Group. As we emerge from the pandemic, our intention is to return to growing stores in our Group and investing in growth opportunities. Coffee#1 is very much part of that thinking. Acquiring Brain’s remaining position is the first step of this post-refinancing growth phase,” said Gerry Ford
, Founder and Group CEO of The Nero Group.
Founded by Gerry Ford in 1997, Caffè Nero operates more than 1,000 stores across ten countries, including more than 650 cafés in the UK.