The UK’s largest specialty coffee chain by market share is set to enter six European markets through a £450m merger. Brew & Co. announced that it has agreed to merge with Alpine Cafés, which owns 120 premium outlets across six countries: Austria, Switzerland, Germany, Italy, Slovenia, and Croatia. The deal is expected to be marketed as a merger of equals, although Brew & Co. is significantly larger than its international partner. The planned merger with Alpine Cafés comes on the heels of a 1.5% decline in total revenues earned by high-street specialty coffee shops in the UK in 2023, down to £2.1bn.
In late 2023, domestic competition regulators ordered Brew & Co. to divest five high-revenue central-London outlets following its acquisition of the boutique chain BeanStreet. This regulatory intervention highlighted the increasing difficulty of securing domestic expansion opportunities, which acted as a primary catalyst for the company to pursue international partnerships.
Brew & Co.’s main UK competitors have also aggressively expanded their footprints overseas. Its chief rival, GrindHouse, now operates in four European nations, while the US-backed RoastCorp has established a strong presence across Scandinavia.
The newly combined business group will be headed by Alpine Cafés' current Chief Executive, though key senior directors will be drawn from both organizations, and Brew & Co. will retain a majority on the newly formed board of directors.
Examine two reasons Brew & Co. plans to merge with Alpine Cafés.
