Nestlé strikes franchise deal with Granada

Nestlé has struck a deal with Granada Road Services to run its national chain of coffee houses, called Café Nescafé, at service areas around the country.

The division of the Granada Group has already set up outlets in four service areas. By the end of the year it plans to have rolled out the franchise operation to about 20 of its 57 service areas.

The cafés sell a selection of Nestlé drinks and confectionery, including specialist products such as Orange Aero and After Eight coffees, and Nescafé Coffee Cake.

A Nestlé spokeswoman says: “The franchise could operate in many different sectors leisure, retail, transport and business, for example thanks to its flexibility and potential profit opportunity.”

The news comes as Nestlé unveiled plans to launch a raft of new products this year at a review of the company’s results.

Peter Blackburn, chairman and chief executive of Nestlé UK, announced that a Nestlé Junior food range for children is to be launched in the UK in June.

The range, to be handled by Nestlé’s Nutrition Business Unit which was set up last year, will be endorsed with the Blue Bear logo. The logo is used on various products for children on sale on the continent.

Blackburn also announced that Nestlé is to launch a range of clinical nutritional products, called Clinutren, designed for people in hospital who need to take supplements.

In addition, Nestlé Rowntree is launching three Polo variants: Polo Citrus Sharp, Polo Butter-Ups and Polo Super OJs.

The company’s beverage division is understood to be testing an iced coffee, called Nescafé Metropolis.

News Analysis, page 26