Massimo Zanetti Beverage USA, the North American operating unit of the Italian coffee roaster, has announced plans to acquire a 25.1% minority stake in Toronto’s Club Coffee.
The $25.1m deal will allow both companies to boost sales growth through market-leading innovations. It is anticipated that the agreement will enable Massimo Zanetti to expand its reach in Canada, and Club Coffee to enhance its US presence. The equity investment is expected to be finalised before the end of this calendar year and is subject to the parties’ successful conclusion of due diligence and other pre-closing conditions.
Massimo Zanetti’s collaboration with Club Coffee will bring the world’s first certified 100% compostable single-serve hot beverage technology to market; it will be the first company to give consumers a fully compostable solution to concerns about single-serve coffee waste, starting with its Hills Bros coffee brand in January 2016.
John Boyle, Massimo Zanetti Beverage USA chief operating officer, said: “MZB knows that market leadership comes from seeing what consumers want, then delivering effectively. We know consumers want a more sustainable option for their single-serve coffee and we are confident that our certified 100% compostable pod is the right solution. This equity stake demonstrates our enthusiasm for Club Coffee’s commitment to technology that delivers this simple solution. It also underscores our determination to build market leadership through the innovation and the quality consumers demand.”
Club Coffee CEO John Pigott added: “Our companies see significant opportunities for growth in the coffee market. PurPod100, our certified 100% compostable single-serve pod, is just the first of those opportunities. This strategic shift takes the long record of collaboration between both businesses to a new level. It positions MZB and Club Coffee to bring more new solutions to our customers across the coffee, tea and other hot beverage sectors.”
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