Market Update - UK

Cooks Global Foods’(“CGF”) UK based Esquires Coffee stores network (“ECUK”) has outperformed the market in the UK in 2021. Independent research recently completed by Allegra World Coffee Portal Research and Analysis* has reported that the UK branded coffee shop market has returned to 87% of the pre-Covid 2019 sales levels in 2021. The 2021 sales of the ECUK network that had 48 stores operating as at the end of December 2021 were 99.5% of the 2019 net sales.

CGF’s Triple Two Coffee delivered store sales in the 6 months July – December 2021 that were 246% of 2020 for the same period. Triple Two was acquired on 19th June 2020 and therefore CGF does not have comparative store sales figures for the January to June period 2020.

CGF notes that the UK Covid-19 restrictions were largely relaxed from 19th July 2021 and as reported by Allegra “the UK branded coffee shop market has recovered faster than expected from the debilitating economic impact of the pandemic”. Allegra also comment that record inflation, potential new Covid variants, staff shortages, and potential for VAT to return from 12.5% to 20% in April 2022 represent some significant market headwinds.

CGF’s brands – Esquires Coffee UK and Triple Two Coffee collectively grew from 57 cafes in January 2021 to 69 cafes in January 2022 in the UK.

CGF is optimistic that with the high levels of vaccination in the UK and the stated desire of the UK Government to return to a pre Covid normality the trends that have been seen in 2021 will continue into 2022 and beyond.

Keith Jackson
Chair and CEO, Cooks Global Foods Limited

* https://www.worldcoffeeportal.com/Latest/News/2022/January-(1)/UK-coffee-chains-achieve-%C2%A31-3bn-sales-rebound-as-o

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