Massimo Zanetti Beverage USA acquires minority stake in Club Coffee

Massimo Zanetti Beverage USA (MZB), a Portsmouth, Va.-based supplier of coffee under its own brands and for private labeling — and the North American operating unit of the Italian global coffee roaster and marketer Massimo Zanetti Beverage Group — said it acquired a minority equity position in Toronto-based Club Coffee. The parties expect the investment to boost sales growth through market-leading innovations and to enable MZB to expand its reach in Canada and Club Coffee to enhance its United States' presence.

The parties announced their plans for MZB's equity investment in November 2015, and the purchase transaction closed on April 28. Following the purchase, MZB will own a 15.1 percent equity stake in Club Coffee, acquired for a purchase price of C$15.1 million. The November 2015 announcement described plans for MZB's purchase of a 25.1 percent stake, but it was decided the initial purchase would be for 15.1 percent with an option for MZB to increase that stake by an additional 10 percent. MZB said it retains the right to exercise this option for a period of 13 months following the initial purchase at a price that will be dependent on current market conditions at the time of exercise.

MZB's collaboration with Club Coffee includes bringing the world's first certified 100 percent compostable single-serve hot beverage technology to the North American market. Using the innovative PURPOD100 coffee pod, MZB said it is leading the effort to offer consumers a verified compostable solution to their concerns regarding single-serve coffee waste. Certified by the Biodegradable Products Institute as compostable in industrial facilities, the coffee pods were introduced to the Chicago market on Earth Day, April 22. Other MZB brands and private label coffee products also will adopt the PURPOD100 single-serve format with nationwide in-store availability to consumers expected later in 2016.