(VILLORBA (TV), IT/PORTSMOUTH, Va. – November 12, 2015) – Massimo Zanetti Beverage USA (MZB), the North American operating unit of the Italy-based global coffee roaster and marketer Massimo Zanetti Beverage Group, has announced plans to acquire a 25.1 percent minority equity position in Club Coffee of Toronto, Canada, for $25.1 million (CDN), positioning both companies to boost sales growth through market-leading innovations.
The parties anticipate their agreement will enable MZB to expand its reach in Canada and Club Coffee to enhance its U.S. presence. The equity investment is expected to be finalized before the end of this calendar year and is subject to the parties’ successful conclusion of due diligence and other pre-closing conditions.
MZB’s collaboration with Club Coffee includes bringing the world’s first certified 100 percent compostable single-serve hot beverage technology to market. MZB will be the first company to give consumers a 100 percent compostable solution to their concerns about single-serve coffee waste, starting with its Hills Bros® coffee brand in January 2016.
“MZB knows that market leadership comes from seeing what consumers want, then delivering effectively,” said John Boyle, MZB USA’s chief operating officer. “We know consumers want a more sustainable option for their single-serve coffee and we are confident that our certified 100 percent 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.”
“Our companies see significant opportunities for growth in the coffee market. PῧrPod100™, our certified 100 percent compostable single-serve pod, is just the first of those opportunities,” said John Pigott, Club Coffee CEO. “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.
MZB and Club Coffee were among the first companies to act on consumer concerns about the waste associated with single-serve coffee. MZB brought an important advance to the market with its Filter Cup™ format in 2013, which significantly reduced the amount of plastic compared to traditional single-serve plastic cups. The two companies announced the development of PῧrPod100™ in April 2015. This was followed by a September announcement that PῧrPod100™ had earned certification from the Biodegradable Products Institute (BPI) as industrially compostable.