US – Fresh Brew, one of the largest private-label coffee and tea producers in the US, has announced an investment of US$10 million to expand its current roasting and production division.
The investment will be used to expand the current roasting unit, extraction units, bottling, and canning capabilities making Fresh Brew one of the few companies in the country to offer total end-to-end beverage solutions.
The company said that construction is now underway to transform the 40,000 sq. ft. of vending space to allow for extraction, bottling, and canning production in-house.
They also acquired an additional 25,000 sq. ft. of space, creating a combined total of 140,000 sq. ft. for the roasting plant and warehouse.
Once the upgrade is complete and additional roasting capabilities are fully implemented, production is expected to increase to 100 million pounds (US$125.29million) annually, according to Fresh Brew.
This new investment will follow the upgrades in its existing roasters and the purchase of two additional roasters which will arrive later this summer.
The company also expanded tea lines, with the addition of sugar to its production, to allow for sweet tea products. The company also added 11 packing lines for a total of 25 to accommodate increased demand.
In March, Fresh Brew also took a strategic move of divesting its vending division to Compass Group North America in order to focus the company’s efforts and resources on the expansion of its product portfolio and extracting product lines.
Over the last decade, Fresh Brew has grown its vending division into the largest, independent market leader in the Texas region since the division has always maintained a strong focus on technology and health initiatives.
The division also offered safe, convenient, and efficient transactions, as well as customized offerings such as micro-markets and smart cafes, setting the company apart from its competition.
The two moves Fresh Brew has taken come at a time when a report from Grand View Research forecasts that the global ready-to-drink tea and coffee market size will reach US$167.88 billion by 2030, registering a CAGR of 6.2% during the forecast period.
The growth is driven by the acceptance of ready-to-drink tea and coffee products as healthier substitutes to carbonated soft drinks and instant energy provided as well as the new flavors in these product categories are also offering a tremendous boost to the overall market growth.
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