Dive Brief:
- Sprouts Farmers Market announced Wednesday it is expanding its partnership with Klatch Coffee to open 20 new in-store cafes.
- The specialty grocer plans to open cafes inside stores in Southern California in two phases beginning late this year and lasting into 2026.
- Sprouts is quadrupling the number of Klatch Coffee shops it houses through its expanded tie-up with the California coffee company.
Dive Insight:
The specialty grocer opened its first Klatch Coffee cafe in May 2024 and proceeded to open four more in Redlands, Eastvale, Fullerton and Rancho Cucamonga, California. This next growth phase will start with Sprouts debuting nine new cafes between this year’s fourth quarter and the first quarter of 2026. Three Los Angeles Sprouts stores will receive a Klatch Coffee cafe, as will Sprouts stores in Huntington Beach, Glendora, La Verne, Diamond Bar, Rancho Cucamonga and West Covina, California.
Phase two of this expansion effort will begin next year and will welcome 11 more coffee shops, including the first-ever Klatch Coffee locations in Sprouts stores in San Diego County, per the announcement.
“This partnership with Klatch Coffee is about more than just great coffee — it’s about serving our communities through a local brand that shares our values,” Nick Konat, president and chief operating officer of Sprouts, said in a statement. “Klatch Coffee is authentic to California, delivers an exceptional product, and has already been a hit with our customers.”
On National Coffee Day on Sept. 29, Klatch Coffee customers can receive a free “Competition Cappuccino” through the coffee brand’s mobile app at all 12 of its currently open cafes, including the five located inside Sprouts stores. This offering will also extend to each new cafe opening in 2025 and 2026, per the press release.
Sprouts continues to cement its spot as a frontrunner in the specialty grocer space. The grocer is on track to open 35 new stores this year while also establishing its self-distribution network to support its expanding footprint. This summer, Sprouts also began the nationwide rollout of its inaugural loyalty program.
