Neocorner, a French company specialising in contract catering and the Coffee & Food Hospitality sector, has embarked on an ambitious growth strategy. The group has recently acquired the start-up Totem. AURIS Finance, a specialist consultancy in mergers and acquisitions, provides insights into this development.
Neocorner was founded ten years ago by brothers Philippe and Brice Nadal, and the company specialises in catering and business services. The group operates in three segments: vending, alternative catering (connected smart fridges, cafeterias) and company shops. For 2024, the group aims to deliver sales of €13 million, rising to €20 million by 2025.
Inorganic growth strategy
Over the past two years, Neocorner group has embarked on an aggressive acquisition strategy. In 2023, at the Commercial Court in Bobigny, it acquired Fraîche Cancan, a sustainable, smart catering company developed by Kumo group. This strategic acquisition has enabled the group to expand its range of smart fridges and catering services. This was followed by the acquisition of Totem, a start-up specialising in self-service grocery shops, which was established in 2019. Totem, with a turnover of €4 million, was acquired for €500,000. This acquisition will see Neocorner take over the operations of 55 self-service grocery setups located within companies across the Paris region, ensuring uninterrupted service with 24/7 availability.
Digital innovation
The directors of Neocorner are optimistic about the future of the automated service, a model that is already well-established in the US. In France, the uptake of this model has been primarily by businesses, with commitment contracts ranging from three to five years. The group has a strong heritage in leveraging digital technology to develop its solutions. Distributors are connected to enable real-time stock monitoring and optimised supply management. Touch screens have been integrated into the vending machines to enhance the user experience, while Neocorner has designed small multi-drink vending machines for its hot drinks range, which can be placed on a work surface. On the payment side, each vending machine is equipped with an interface offering several paperless options: contactless credit card, smartphone, meal voucher and access badge. With these innovations, Neocorner aims to become the benchmark for Coffee & Food Hospitality in the Paris region.
Promoting sustainable development
Neocorner is committed to sustainable development and has initiatives in place to reduce the use of plastic and eliminate polluting capsules. For its food products, the company sources from local partners and offers zero-waste recipes, with an emphasis on reducing food waste.
Our experts at your service
The development of Néocorner is a case in point. Alongside targeted acquisitions, the group is developing around two pillars: digital innovation and environmental responsibility. This strategic focus has enabled the establishment of long-term contractual agreements with its corporate partners. Despite the ongoing challenges in the current economic climate, it also presents opportunities for companies that embrace innovation. AURIS Finance’s experts are specialised by sector. Our team, with expertise in the contract catering sector, is well-positioned to support businesses in their growth strategies, ranging from raising finance to preparing for acquisitions or integrations.
