UK listing brews for Cooks Coffee Company

Originally published on NBR(National Business Review New Zealand) on 1st June 2022

Cooks Coffee Company executive chairman Keith Jackson.

The global coffee company plans to do a secondary listing within 12 months.

Cooks Coffee Company said another public listing is brewing in its future, this time in the United Kingdom, in a move executive chairman Keith Jackson said, “just seems logical.”   

With most of its stores operating in the UK and Ireland, Jackson said the plan is to list the company in the UK within the next 12 months. He would be meeting up with key people involved in markets such as the London Stock Exchange and the Irish Exchange over the next week to discuss options.  

The NZX-listed franchise company, that owns the Esquires and Triple Two coffee chains, is headquartered in Auckland but operates offshore, largely in Europe and the Middle East.  

“We’re at an early stage but we’re very confident that we can [list], and that could either later this year or early next year,” Jackson said. 

The company acquired Triple Two Coffee in 2020, and between the two brands, Cooks Coffee claims to be the fourth-largest coffee chain in the UK, behind Costa, Starbucks, and the Caffe Nero group.

Together those companies make up around 800 cafes, while Cooks Coffee has 67 between its two brands.

Jackson said there is still "huge potential to grow," especially through franchising.

Esquires Coffee and Triple Two Coffee cater to two different target markets, with the former focusing on a sit-down experience and the latter catering to a grab-and-go audience.  

An Esquires Coffee storefront.

In March, the company said it would change its name from Cooks Global Foods [NZX:CGF] to Cooks Coffee Company [NZX:CCC]. Jackson told NBR the name change was to “realign the name with what we’re actually doing”.

The company initially started with a broader view that included food but recently decided to focus on the coffee side of the business. 

Jackson isn’t too concerned about the rising cost of living and said the company is in a good position being a relatively low-cost business, and consumers had accepted small price increases to pass on costs.

Growth opportunity 

In March Cooks Coffee also undertook a shares consolidation of 15 to one, in a move Jackson said indicates to shareholders the company is serious and wants to move from trading at less than 10c a share to a more serious player in world markets.  

Shares last traded at 42.5c.  

The Middle East is another key market, with stores in Bahrain, Kuwait, Saudi Arabia, Jordan and Pakistan.  

Jackson said the Middle East countries have been “knocked around by Covid” but Saudi Arabia had recovered faster than most and was a good market for the company as Starbucks and Cooks Coffee were the only two franchises available.

Another market the company will be exploring opportunities in is Pakistan, with room for growth and expansion throughout the country.  

Cooks Coffee Company full-year results.

Cooks Coffee turned a profit over the 12 months ending March 31, making $340,000 up from a $2.55m loss the previous year, while global operating revenue increased to $300,000 from $200,000. 

The company said the positive profit result was a combination of the recovery in café sales (particularly in the UK) and a full year of input from the Triple Two coffee chain acquisition.  

Jackson told NBR the company has come through Covid well and shown the resilience of its model, with growth plans in place for the 2023 financial year.

Kate McVicar Wed, 01 Jun 2022