Coca-Cola HBC has agreed to acquire a 30% minority stake in Italian coffee company, Casa Del Caffè Vergnano, for an undisclosed sum.
The agreement was made by Coca-Cola HBC’s wholly-owned subsidiary CC Beverages Holdings II and marks an important step in its strategy to become the ‘leading’ 24/7 beverage partner across its markets.
As part of the deal, the companies will enter into an exclusive long-term distribution agreement, which will see Coca-Cola HBC distribute Caffè Vergnano’s products in its 27 territories outside of Italy.
Headquartered in Santena, Caffè Vergnano is described as one of the oldest coffee roasters in Italy with roots dating back to 1882. In 2020, Caffè Vergnano reportedly sold approximately 7,000 tons of coffee in more than 90 countries worldwide.
The acquisition will see Coca-Cola HBC strengthen its coffee portfolio with Caffè Vergnano’s range of products – including traditional espresso in various blends, packages and formats such as beans, roast and ground coffee and single portioned pods – which will join its existing Costa Coffee collection.
“With Caffè Vergnano, we are well positioned to build a total coffee portfolio that caters for a diverse range of consumer preferences,” said Zoran Bogdanovic, CEO of Coca-Cola HBC.
“We are respectful of the company’s 140-year history and the dedication and passion of the four generations that created such a rich and renowned coffee brand, synonymous with the authentic Italian coffee experience. Our investment in Caffè Vergnano is aligned with The Coca-Cola Company as we have worked together on this opportunity.”
Meanwhile, Caffè Vergnano will utilise Coca-Cola HBC’s route-to-market network and commercial capabilities to aid its significant expansion.
Franco and Carlo Vergnano, CEO and chairman of Caffè Vergnano, said: “We are very pleased to welcome Coca-Cola HBC as our new strategic partner to help accelerate our growth ambitions and support the journey of our brands outside our home market.
“By combining Coca-Cola HBC’s expertise, know-how and critical mass, with our heritage coffee brand, great products and deep knowledge of the industry, we are confident this will prove a powerful partnership in growing our business further.”
The transaction – which is subject to customary closing conditions and regulatory approvals – is expected to be completed in the second half of 2021.
© FoodBev Media Ltd 2021
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