Compass Group subsidiary acquires organic coffee chain, Peabodys Coffee

UK – Compass One, a subsidiary of Compass Group UK & Ireland has announced the acquisition of Peabodys Coffee, known for organic coffee as well as food and beverages in healthcare environments.

The financial details of the acquisition were not made public.

According to Compass One, the move is part of its strategy to broaden its presence in the healthcare sector.

Although primarily known for its organic coffee, Peabody Coffee has served London hospitals since 1997. The company currently operates across England in 10 National Health Service (NHS) sites.

The company serves freshly prepared food to NHS staff, patients, and visitors.

Compass One has committed to opening new cafes in seven hospital sites in England before the end of the year.

Compass One CEO Mark Webster welcomed the acquisition by saying, “We have long admired the ethos of Peabodys Coffee. With a fantastic reputation for great coffee and food, along with an unwavering commitment to sustainability, while supporting the NHS, Peabodys Coffee possesses strong and admirable values that align with our own.”

“We are excited about the opportunity to support their growth, bringing Peabodys Coffee to many more NHS sites in the future, for NHS staff, patients, and visitors to enjoy.”

Peabodys Coffee’s Managing Director Claudia Mascino also welcomed the acquisition. The managing director expressed confidence over the move, describing it as a valuable opportunity for growth.

Mascino reiterated expansion to other NHS hospitals has been a longstanding strategic objective for the café.

He also described the acquisition as a perfect fit, praising the alignment between both companies’ values regarding sustainability and customer experience through offering high-quality food and coffee.

The move is part of Compass One’s strategy of making forays into catering sub-sectors.

In May, the company announced the acquisition of CH&CO, a UK and Ireland food services provider.

CH&CO’s portfolio of brands, which includes Gather & Gather, Vacherin, and Company of Cooks, operates across workplace catering, events, venues, visitor attractions, stadiums, education, healthcare, and hospitality.

In August 2024, Compass Group India, a subsidiary of the Compass Group, acquired a 70% stake in ICS Foods, a catering company with a portfolio of 70 clients and delivering 160,000 meals every day.

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