The latest news, trends, analysis, interviews and podcasts from the global food and beverage industry

Westrock Coffee Company has entered into definitive agreements with affiliates of HF Capital and the Herbert Hunt family to make aggregate equity investments of $75 million in the company. The aggregate equity investments will be made through the purchase of 7,500,000 shares of company common stock at a price of $10 per share. The transactions are expected to close in August 2023, subject to the satisfaction of customary closing conditions. Westrock Coffee also announced plans to open a new facility in Conway, Arkansas, US – the result of a more than $300 million investment. The new facility is set to provide 600 jobs over five years with expected average annual salaries of around $70,000. The location will utilise state-of-the-art equipment, including advanced robotics specifically designed to efficiently manufacture and package a variation of beverages such as canned or bottled cold brew coffees, lattes, assorted teas and juice-based products, as well as single serve coffee cups. The space will also incorporate a product development lab and FDA (US Food and Drug Administration) certified pilot plant, enabling Westrock to create, test, and produce new beverage solutions. Scott T Ford, CEO and co-founder of Westrock Coffee, stated: “We are excited to announce both a follow-on $50 million equity investment by HF Capital, one of the original investors in our go-public transaction and a $25 million equity investment by the Herbert Hunt family, a new investor who was excited for the opportunity to partner with our team as we expand our extract and ready-to-drink (RTD) capabilities.” He added that the equity investments and credit agreement amendment form part of a capital plan that allows the company to complete two new can lines and the Conway facility. The expansion of the extracts and RTD business in Conway is the gateway to future EBITDA expansion and remains Westrock Coffee’s top strategic priority and key enabler of future growth, he concluded. Andrew Seamons, chief investment officer at HF Capital, commented: “Our agreement to make this additional investment further validates our belief in Westrock Coffee’s strategy to capitalise on the strong demand for extracts and RTD as a growing consumer category and on the ability of the Westrock Coffee team to deliver on that strategy".