Bottling group Coca-Cola HBC has agreed to acquire a 30% shareholding in Italian coffee company Casa Del Caffè Vergnano (Caffè Vergnano).
The deal, expected to be completed in the second half of 2021, also involves the two firms entering into an exclusive distribution agreement for Caffè Vergnano’s products in Coca-Cola HBC’s territories outside of Italy.
Financial details of the proposed transaction were not revealed.
Caffè Vergnano is a family-owned Italian coffee company headquartered in Santena, Italy, with its roots dating back to 1882. Its portfolio includes traditional espresso in various blends, packages and formats such as beans, roast and ground coffee and single portioned pods. In 2020, the company sold approximately 7,000 tons of coffee in more than 90 countries worldwide.
Coca-Cola HBC stated that the tie-up represented an “important milestone” in the company’s vision for the beverage market and supports its push into the coffee category. It added that Caffè Vergnano would be “highly complementary” to its existing Costa Coffee offer.
“We are grateful for the trust being placed in us by the Vergnano family and are excited by the opportunities ahead with this terrific brand,” said Zoran Bogdanovic, CEO of Coca-Cola HBC.
“With Caffè Vergnano, we are well-positioned to build a total coffee portfolio that caters for a diverse range of consumer preferences. 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.”
Franco and Carlo Vergnano, CEO and Chairman of the Board of Directors of Caffè Vergnano, added: “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.”
NAM Implications:
- Potential synergies in both geographies and overlapping categories.
- A win-win arrangement that could impact rivals to each company.
- Watch this space…
