We met for the first time in 2015, with the aim to encourage them to look into their dairy sourcing supply chains. Both Café Nero and Costa are seeing growth in their businesses. With growth come opportunities, so it was a great chance for each business to take a good look at their supply chains.
We have now seen great improvements made by both coffee chains; an encouraging step for the dairy industry, but there is still more to do.
Café Nero has come a long way in a short space of time, in terms of unpicking their dairy supply chains. Following meetings with the NFU, Café Nero now focus on country of origin when developing new products, and realise the importance of provenance. Innovation and new product development is driving a change in their buying habits, and we are looking forward to hearing where their current discussions lead to in the near future.
We would encourage Café Nero to continue their great work so far, not only with dairy sourcing, but also to other agri-food based ingredients; meat, bread, poultry, salads and veg.
Costa exhibits a good example of how a business can form closer relationships with their primary producers. Approx. 0.5% of the UK liquid milk is used in Costa’s coffee shops and is sourced from a group of producers, processed through Freshways and Tomlinson’s. The price is based on a cost of production plus model with a floor price built into it.
Waste management is also high on the agenda at Costa. Transport efficiencies and in store packaging wastage are some of the steps Costa have built into their waste management strategy. Liquid milk is packed into bags, which are not only are easier transported but in terms of space management in store, makes life much easier.
Following meetings with the NFU, Costa will be looking to roll out these sourcing principles across the rest of their agri-food supply chains.
NFU asks of all food service and hospitality businesses:
- Red Tractor as a bare minimum for sourcing
- Sustainable pricing models
- Work closely with a group of dedicated farmers
- Promotion of British sourcing and Red Tractor in store to customers
- Focus on cream, yoghurt and cheese as well as liquid milk
- Regular dialogue with the NFU to understand industry challenges