Red van goes green

The nation’s largest mobile coffee franchise, Cafe2U, has launched what it claims is the world’s first totally emissions-free coffee van.

The UK’s fifth largest coffee brand says that it will be upgrading its fleet of almost 100 vehicles to electric over the next five years, saving approximately 12,672g of CO 2 per annum.

The company’s first electric vehicles took to the road last month as part of its annual Green Coffee Fortnight, which ran from 27 September 27 and aims to increase environmentally friendly practices in the coffee industry.

Cafe2U is making the switch as part of its goal to become the UK’s first carbon neutral coffee company. The move means all the company’s diesel vehicles will be off the fleet well ahead of the government’s ban on petrol and diesel vehicles which comes into effect in 2030.

To coincide with the unveiling of its first electric van and reduce its carbon footprint further still, the company is also launching a compostable paper cup and minimising its paper usage, with Cafe2U’s head office in the process of digitising all its files ahead of a 2022 deadline to be completely paper-free. The company has also switched from print to digital advertising and launched a new app to replace its loyalty card system.

Cafe2U has introduced several other sustainability initiatives in recent years, with the company launching a waste coffee grounds recycling scheme and replacing its plastic straws with paper alternatives in 2018. This is in addition to replacing the diesel generators in its vans with emissionfree lithium-ion batteries in 2019.

Martyn Ward, chief executive at Cafe2U, said: “Reducing our carbon footprint is absolutely vital to us and our customers so we’re always on the lookout for new ways to become even more sustainable. We are delighted to be leading the way in the mobile coffee market with our new zero emissions coffee vans which are a world first.

“As well as being better for the environment, electric vehicles will enable our franchisees to access indoor events and emission-free zones, amplifying our pro-sustainability message even further. To be the world’s first is testament to the progressive nature of our brand and the hard work both our head office and franchisees put in each and every day.”

Amsric sold to Cobra Coffee

Starbucks operator, Amsric Limited, a subsidiary of multifranchise group Amsric Holdings Limited, has been sold to fellow Starbucks operator, Cobra Coffee Limited, a subsidiary of the Southern Co-op.

Amsric Limited has been a Starbucks operator since 2014, initially acquiring stores from the franchisor and subsequently opening additional stores to reach the current tally of 12 stores, plus two in development.

Amsric is the most significant Starbucks franchisee in the South West of England, operating in locations such as Exeter, Plymouth, Portsmouth, and Southampton. The stores’ formats range from Drive-Thru and Drive-To, Retail Park and Shopping Centre, and on to High Street locations. The company employs around 140 and achieves sales approaching £10 million per annum.

The board of Amsric’s owner, Amsric Holdings Limited, turned to PKF Smith Cooper’s corporate finance team, experts in franchise hospitality deal management, to market the company, negotiate terms, and to manage and advise on the sale process. It also utilised the franchise sector expertise of Burnetts solicitors, who advised on the corporate and property legal aspects of the transaction.

Cobra Coffee (Cobra) has been a Starbucks franchisee since 2013 and was itself acquired by the Southern Co-op in 2018. Southern Co-op is the large regional independent Co-operative, which also operates retail stores and funeral services in the South of England. Cobra operates 35 stores, increasing to 47 following the deal, and will employ approaching 500 in the enlarged business.

Ragin Patel, director of Amsric Holdings, the seller, commented: “We leave the Starbucks community with some sadness but are pleased to have found a great partner in Cobra – which we are confident will take the business forward and that, with the Co-op’s strong people-centric, ethical and community values, our dedicated and committed Amsric team will also benefit.”

Speaking of the deal process, Ragin Patel added: “We are delighted with the guidance and expertise delivered so professionally by PKF Smith Cooper, and by our legal advisers, Burnetts; both laboured tirelessly to achieve a great result and ran a professional, slick process that brought efficiency and good-humour to the process.”

Mark Smith, CEO of Southern Co-op commented: “I am delighted to welcome the new partners joining our team as we continue our growth with Starbucks across the South of England”.

Gwyn Kennett, Cobra’s head of operations said: “This acquisition will enable us to bring the great Starbucks experience to even more customers and we are excited at the opportunity to build out in the South West.”