M&S to offer sandwiches and sizzling meals for Costa Espresso

Marks & Spencer is to offer sandwiches and sizzling meals to greater than 2,500 Costa Espresso retailers because the retailer seeks new methods to achieve commuters now working from dwelling.

M&S mentioned it might be offering greater than 30 completely different gadgets to Costa together with kids’s meals, sizzling meal packing containers and salads beneath the collaboration with the UK’s largest espresso store chain.

The retailer mentioned the partnership with the espresso store, which was purchased by Coca-Cola in 2018, would assist it attain neighbourhood areas, drive-throughs, excessive streets and retail parks.

The deal is M&S’s newest effort to widen the distribution of its meals after it purchased a share in Ocado’s retail arm and changed Waitrose as the web grocery specialist’s primary companion. The take care of Ocado resulted in M&S having the ability to start promoting groceries on-line for dwelling supply for the primary time simply over a yr in the past.

M&S has additionally examined its Merely Meals comfort retailer retailers in WH Smith shops and supplied meals for some British Airways flights for about three years ending in 2020.

In the meantime, M&S has been revamping its shops and merchandise to attraction extra to households, serving to the group return to a pre-tax revenue within the six months to October after a lack of virtually £88m in the identical interval final yr.

The robust efficiency mirrored a ten% leap in meals gross sales in addition to “substantial enchancment” throughout its as soon as struggling clothes and homeware enterprise.

Stuart Machin, the managing director of M&S’s meals division, mentioned: “Bringing collectively scrumptious, nice high quality M&S meals and the nation’s largest chain of espresso retailers is nice for purchasers because it extends our attain and helps our technique of constructing M&S extra related, extra usually for households.”

Analysts mentioned the tie-up might be good for each events, with M&S benefiting from additional gross sales and the upper volumes lifting its revenue margins. Costa has the prospect to increase the variability meals it affords, significantly on wholesome consuming and new developments resembling plant-based meals wherein M&S has already developed full ranges.

Bryan Roberts, a retail analyst at Shopfloor Insights, mentioned retailers have been taking a look at new methods to promote their merchandise in native neighbourhoods as journeys to metropolis centres had diminished through the pandemic. “Life are altering with the shift to working from dwelling and Costa wants to boost its sport on meals and M&S has the model identify and credentials [to help it do that],” he mentioned.

Neil Lake, the managing director of Costa Espresso’s UK and Irish division, mentioned: “This collaboration with M&S … will construct on our present meals vary and assist us fulfil our ambition to turn out to be the primary selection for purchasers shopping for meals and occasional on-the-go.”

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