Whitbread buys Coffee Nation for £60m

Coffee Nation: acquired by Whitbread
Coffee Nation: acquired by Whitbread

Whitbread, the owner of Costa Coffee, has purchased the Coffee Nation chain for £59.5m, and is launching a new brand called Costa Express.

Coffee Nation operates 900 vending machine sites across the UK, including locations at Tesco and Welcome Break.

Whitbred has acquired the brand to develop its new Costa Express brand.

In particular, it has set a target of having 3,000 self serve coffee bars across Britain over the next five years.

In short, the Coffee Nation coffee bars will be scrapped and rebadged as Costa Express.

Andy Harrison, Whitbread chief executive, said: "Customers increasingly want great tasting coffee on the go, which makes the self-service coffee market very attractive.

"This acquisition provides an exciting launch pad to develop 3,000 Costa Express bars across the UK, providing an additional growth lever for the Costa brand and making Costa available to more customers in more locations"

Costa Coffee is fighting for customers against other high street coffee brands and this week kicked off a knocking campaign against Starbucks.

Separately, Whitbread updated the City on its financial performance.

Commenting on the performance of Costa Coffee, the group said like-for-like sale in the last 11 weeks to 17 February were up 3% on the year.

It said Costa remains on target to grow the business to at least 3,000 stores by the end of 2014/15.

Discussion

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Brand Republic Jobs

subscribe now

Latest

Lynx tells men not to leave love to fate
HBO captures awkwardness of watching sex scenes with parents
Primark to open first US stores with Boston chosen as flagship location
Marketing spend on the up but a reality check is needed before celebrating
Top 10 ads of the week: Jackpotjoy and BT Broadband fend off Kevin Bacon
Lidl beats Tesco to 10m Facebook fans
Center Parcs ad banned for encouraging parents to take kids out of school
Coca-Cola, Cadbury and Amazon named top brands for targeting youth market
Leaked document shows Nokia to be rebranded as Microsoft Mobile
Nike lays-off hardware staff in move that casts doubt on future of FuelBand
Greenpeace says save the bees or humans will die
What brands need to know about changes to VAT and online downloads in 2015
Jimmy Savile victims urged to claim compensation in new ad campaign
UKIP launches biggest  ad campaign and stirs up 'racist' accusations
Apple boss Tim Cook provides voiceover on ad touting firm's renewed green commitments
John Lewis walks consumers through its history to celebrate 150 years of business
Waitrose boosts content strategy with 'Weekend Kitchen with Waitrose' C4 tie-up
Hottest virals: Cute puppies star in Pedigree ad, plus Idris Elba and Fruyo
Amnesty International burns candles to illuminate new hope
Toyota achieves the impossible by calming angry Roman drivers
Tom of Finland's 'homoerotic' drawings made into stamps
YouTube reveals user habits to appeal to 'older' marketers
Ex-M&S marketing chief Steven Sharp consulting at WPP
Wolff Olins reveals new CEO after Apple poaches Karl Heiselman
Glasgow offers £30,000 prize to best digital idea for 2014 Commonwealth Games
Google's revenues surge but shares drop as it grapples with transition to mobile
Facebook beats Twitter to most 'marketing friendly' social media site crown, says DMA
Fableists believe children like Finn should be outdoors enjoying life
Homebase, Baileys and Camelot join the line-up at Media360
MasterCard renews Rugby World Cup sponsorship to push cashless message