Costa is just one example of UK-founded coffee businesses thriving. Bloomberg
Costa is just one example of UK-founded coffee businesses thriving. Bloomberg

British coffee brands attract outside investment



Whether it be an americano, latte or the increasingly popular flat white, in many UK towns and cities residents and visitors are never more than a few steps away from the coffee outlet of their choice - usually a homegrown brand.
In fact, British coffee brands are battling the Starbucks invasion at home and abroad so successfully that Coca Cola today announced its purchase of the UK's biggest coffee house, Costa Coffee for £3.9 billion (Dh18.5 bn)
The booming market for coffee shops in the country is being driven by millenials and parents of children under 16, says market intelligence agency Mintel.
"Younger Millennials are drawn to new product lines, and parents care about ethical sourcing and premium quality experiences," said Trish Caddy, Foodservice Analyst at Mintel.
"As a group, they are spreading their budget across a larger number of establishments that are selling coffee, including non-specialists that have expanded into low-cost coffee alongside their food offerings."
The UK's largest coffee chain, Costa Coffee, currently owns over 2400 stores in the country, making up 38.9% of the coffee-focused market share turnover in 2017, compared to Starbucks' 24.6%.
Other homegrown chains are also thriving in the UK market, which analyst firm Allegra forecasts will exceed 31,400 outlets and £13 billion turnover by 2022.

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Read more:

Coca Cola buys Costa Coffee from UK's Whitbread in $5.1bn deal 

Chinese coffee start-up aims to scald Starbucks

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Even brands for which coffee isn't a main focus are muscling in on the opportunity.
Up-market Pret a Manger and Newcastle-founded bakery Greggs expanded their stores and coffee offerings in 2017, with the latter increasing its market share by 2.5%.
"In recent years we have moved from a nation of tea drinkers to a nation of coffee lovers and coffee aficionados," said Chris Stemman, Executive Director of the British Coffee Association.
"Coffee culture has exploded across the UK and consumers have a breadth of choices for the coffee they enjoy drinking, both at home and on the high street."
The opportunities may be abundant, but UK coffee stores are working hard to cater to their audience, says Kubi Springer, branding expert and founder of consultancy She Builds Brands.
"Coffee brands traditionally adorned the high street, but with high street shopping declining somewhat, they are going where brand activation events can be carried out, such as the London Eye, in petrol stations, in supermarkets and more."
Costa in particular has led in this space, installing coffee vending machines in areas where a full-size store isn't possible.
Ms Springer says there is still room for improvement in the sector by marrying online and offline branding.
"Consumers need to hear, see, feel and experience the brand across multiple channels all at the same time; when businesses do this, they will enhance sales, build trust and develop better brand loyalty."
As the UK becomes the embodiment of how to foster growth and development in the coffee shop business, big brands are starting to take notice.
Experts say the Coca Cola purchase of Costa could be a move towards challenging key competitor Starbucks in the international market.
"The prize of Costa lies not in the mature UK market but in Costa's international potential," said Jonny Forsyth, Global Drinks Analyst at market intelligence agency Mintel.
"Especially in China where Costa is one of brand leader Starbucks' major competitors."
Mintel forecasts that the total Chinese coffee market (both retail and coffee houses) will increase from an estimated $10.9 billion in 2017 to $14.9 billion in 2022.
Other sectors may be wishing to bottle whatever is making British coffee shops thrive in such a crowded market. However, Ms Springer cautions brands against getting too comfortable in their positions at the top.
"Larger brands should be aware of the possibility of their market share being taken by smaller independent brands," she said.
"This can easily happen if they lose the authenticity of their brand and stop innovating. This particularly needs to be focused on as franchises increase and the brand expands and grows."

MATCH INFO

Kolkata Knight Riders 245/6 (20 ovs)
Kings XI Punjab 214/8 (20 ovs)

Kolkata won by 31 runs

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  • Premier League-standard football pitch
  • 400m Olympic running track
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  • Specialist robotics and science laboratories
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  • Disruption Lab and Research Centre for developing entrepreneurial skills
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Pox that threatens the Middle East's native species

Camelpox

Caused by a virus related to the one that causes human smallpox, camelpox typically causes fever, swelling of lymph nodes and skin lesions in camels aged over three, but the animal usually recovers after a month or so. Younger animals may develop a more acute form that causes internal lesions and diarrhoea, and is often fatal, especially when secondary infections result. It is found across the Middle East as well as in parts of Asia, Africa, Russia and India.

Falconpox

Falconpox can cause a variety of types of lesions, which can affect, for example, the eyelids, feet and the areas above and below the beak. It is a problem among captive falcons and is one of many types of avian pox or avipox diseases that together affect dozens of bird species across the world. Among the other forms are pigeonpox, turkeypox, starlingpox and canarypox. Avipox viruses are spread by mosquitoes and direct bird-to-bird contact.

Houbarapox

Houbarapox is, like falconpox, one of the many forms of avipox diseases. It exists in various forms, with a type that causes skin lesions being least likely to result in death. Other forms cause more severe lesions, including internal lesions, and are more likely to kill the bird, often because secondary infections develop. This summer the CVRL reported an outbreak of pox in houbaras after rains in spring led to an increase in mosquito numbers.

In numbers: PKK’s money network in Europe

Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010

Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille

Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm

Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year

Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”

Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners

TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013 

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THE DETAILS

Kaala

Dir: Pa. Ranjith

Starring: Rajinikanth, Huma Qureshi, Easwari Rao, Nana Patekar  

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