2022 was a big year for branded coffee chains, with international expansion a key trend to emerge following the lifting of pandemic restrictions in many parts of the world. New market entries proved a popular topic for World Coffee Portal readers last year, with four of our 10 most read stories of 2022 focused on international debuts. Also among our most read stories was a change of leadership at the UK's largest coffee chain, a Middle Eastern milestone for a US coffee giant and an acquisition down under.
Here are the top 10 most read stories on World Coffee Portal from 2022:
.jpg.aspx?lang=en-GB&width=700&height=509)
New market entries proved a popular topic for World Coffee Portal readers in the last 12 months | Photo credit: Johen Redman
In May 2022 World Coffee Portal shared that Canadian coffee chain Tim Hortons was planning to launch in Pakistan and open dozens of new outlets in the coming years, with a first site in Lahore slated to open by the end of 2022. Although operations in Lahore are yet to commence, Tim Hortons said it views Pakistan as a key part of its international growth plans, which also saw the company launch in India last year.
In February 2022 South Korean bakery café chain Paris Baguette announced it would make its UK debut after securing a site at the Battersea Power Station Development in London. The store, which opened in October 2022, was followed by a second London site on Kensington High Street in November. Paris Baguette plans to reach 20 franchised UK outlets by 2025.
UCC Holdings acquired Australian coffee business group Suntory Coffee Australia Limited (SCA) for $158.4m in February 2022. The transaction was made through a newly created UCC subsidiary, UCC ANZ Management, and completed in the first half of 2022. SCA is one of the largest groups of coffee roasters in Australia and New Zealand, and is comprised of major brands including Toby’s Estate, Caffe L'Affare, Atomic Coffee Roasters, Bruno Rossi and Robert Harris.
Toby's Estate's flagship café and roastery in Sydney, Australia | Photo credit: Toby's Estate
Jill McDonald stepped down as CEO of Costa Coffee at the end of July 2022 to join US fast-food chain McDonald’s as Executive Vice President and President of International Operated Markets. McDonald became Costa Coffee CEO in November 2019, a year after it was acquired by US beverage giant Coca-Cola. The coffee chain praised McDonald for her leadership during the pandemic and appointed US-based COO Shakir Moin as Interim CEO in July 2022.
US beverage giant Coca-Cola cited the continued recovery of Costa Coffee’s retail business in the UK as positively impacting its first-quarter results, which increased 16% to reach $10.5bn. Coca-Cola said Costa Coffee’s 2,400 UK-plus stores generated a 28% rise in revenues for its Global Ventures division, which manages the coffee chain. Coca-Cola went on to post revenues of $11.3bn and $11.1bn for its second and third quarters respectively, citing the growing influence of Costa Coffee on both occasions.
Following the departure of Jill McDonald, Coca-Cola appointed Shakir Moin as Costa Coffee’s Interim CEO in July 2022. Moin has worked for the Atlanta-based beverage company since 1997, holding several senior leadership roles, including Vice President for Global Strategic Initiatives and Head of Global Growth Operations, before becoming Chief Operating Officer for Costa Coffee in the US in August 2019. He remains Interim CEO of Costa Coffee with a permanent successor yet to be named.
February 2022 saw Kuwait-based Alshaya Group open its 1,000th Starbucks store in the MENA region at Dubai’s Bluewaters Island Reserve. Alshaya Group began its partnership with Starbucks in 1999, opening its first store in the Middle East that year and entering the UAE market in 2000. The franchisee has since expanded Starbucks across 14 countries, including 10 markets in the Middle East and North Africa region.
A Starbucks store in Dubai | Photo credit: Starbucks
UK coffee chain Costa Coffee opened its first retail store in the US in August 2022, marking its initial foray into brick-and-mortar outlets in the country four years after being acquired by Coca-Cola. After opening at the CODA mixed-use development unit in Atlanta, Georgia, Costa Coffee opened a second location at Emory University’s Goizueta Business School in the same city. Neither Coca-Cola nor Costa Coffee have set a target for further outlets in the country but the coffee chain issued in a statement that it was ‘taking a disciplined approach to the expansion’.
In October 2022 Caffè Nero launched a new partnership with UK retail chain Waitrose in a move described as ‘one of the biggest of its kind between a coffee chain and supermarket’. The agreement sees Waitrose, which operates 331 stores across the UK, stock a full selection of Caffè Nero’s at-home coffee retail products – including capsules, ground coffee and wholebean coffee. The premium supermarket chain also revived its free hot beverage offer for myWaitrose members, paused during the pandemic, with coffee supplied by the Nero Roasting Company.
In August 2022 US specialty coffee chain and roaster Peet’s Coffee announced plans to debut in the Middle East with an outlet in the UAE. The store, which opened in January 2023, is operated by multi-brand restaurant operator Americana Restaurants, which also counts Costa Coffee and Krispy Kreme among its portfolio of franchised brands. The Kuwait-based franchisee said the agreement with Peet’s Coffee will cater to increased demand for premium coffee across the Gulf Cooperation Council (GCC) countries.
Subscribe to The Weekly Coffee Dose for the latest World Coffee Portal news updates.