Coca Cola HBC Acquires 30% Stake in Casa Del Caffè Vergnano of Italy
July 11 - 2021
Coffee Geography Magazine
The deal will allow Coca-Cola HBC, which is 23% owned by Atlanta-based Coca-Cola Co, to address a wider range of consumer tastes that espresso specialist Caffè Vergnano was complementary to its offer of Costa Coffee products. The family-owned Caffè Vergnano is one of Italy's oldest roasters, with roots dating back to 1882 with market share of espresso beans and single-use pods in 90 countries around the world.
The agreement follows a similar accord signed in 2018 between global coffee group JAB and Italian roaster Illycaffe, which allowed the Italian coffee maker to exploit JAB’s powerful distribution network to reach more clients and channels.
“With Caffè Vergnano, we are well-positioned to build a total coffee portfolio that caters for a diverse range of consumer preferences,” Coca-Cola HBC Chief Executive Zoran Bogdanovic said.
Coca-Cola HBC Chief Executive, Zoran Bogdanovic
The dual London and Athens-listed CCHBC is a major partner to The Coca-Cola Company, which bought Costa from Whitbread for $4.9 billion (£3.5 billion) in 2019. HBC said it worked with The Coca Cola Company on the new deal, and said Caffè Vergnano will be "highly complementary" to its existing Costa Coffee arm, and allow it to "address an even wider range of consumer tastes and segments".
Caffè Vergnano is a family-owned company which makes various coffee blends for different machine usage had reported revenue of $112 million in 2019.
HBC said the deal "represents an important milestone" in its growth ambitions, while Franco and Carlo Vergnano, CEO and Chairman of the Board of Directors of Caffè Vergnano, said they are confident the move "will prove a powerful partnership in growing our business further".
HBC CEO, Zoran Bogdanovic, said: "With Caffè Vergnano, we are well positioned to build a total coffee portfolio that caters for a diverse range of consumer preferences.