CANADA – Singapore based global food ingredients supplier ofi (formerly Olam Food Ingredients) has acquired Canadian coffee roaster Club Coffee for C$150 million (US$117m).
Operating since 1906 Club coffee is one of Canada’s largest roasters of packaged coffee packaging solutions providers, serving private label customers and retail brands from its facilities in Toronto.
Club Coffee enjoys long-standing relationships with its blue-chip customer base who value its expertise in blending, roasting, manufacturing and sustainable packaging innovations for packaged coffees.
The company operates two Toronto manufacturing facilities that serve more than 600 private-label clients and support more than 120 products offered under numerous Club Coffee brands.
Club Coffee is also the creator and owner of the PurPod100, a plant-based single-serve, single-use, Keurig-compatible coffee pod that has achieved Biodegradable Products Institute (BPI) certification for both the United States in Canada.
The acquisition of Club Coffee is aligned with OFI’s growth strategy to deliver sustainable, natural, value-added food and beverage ingredients and solutions through a diverse channel mix, to customers across the globe.
It is also timely as private label and co-manufactured channel is an attractive, high-value and growing part of Club Coffee’s portfolio, according to OFI.
Revenue in the Coffee segment amounts to US$119.90bn in 2022 with an annual market growth of 4.75% (CAGR 2022-2025) according to data from Statista.
Additionally, the North American Coffee Market is projected to grow at a CAGR of 5.9% during the forecast period (2019-2024).
OFI intends to leverage Club Coffee’s capabilities to expand its reach in the North American coffee market once the transaction is completed in Q2 2022.
In an announcement of the acquisition, OFI Managing Director and CEO Vivek Verma said the company plans to integrate its existing coffee sourcing programs with Club Coffee’s production formats for private-label and at-home customers.
Club Coffee CEO John Pigott commented: “The OFI acquisition of Club Coffee is great news for our customers, employees and all other stakeholders. OFI ‘s sustainable green coffee supply chain business complements Club Coffee’s innovative and sustainable packaging platform.
Together, we now have the capacity and resources to accelerate new comprehensive value-added solutions with the aim of benefitting our customers.
Ofi’s acquisition of Toronto, Ontario-based Club Coffee will be paid for with existing cash and debt facilities.
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