Massimo Zanetti Beverage USA Buys 18 Million Stake In Club Coffee

PORTSMOUTH, VA -- Massimo Zanetti Beverage USA said it will acquire a 25.1% stake in Toronto's Club Coffee for $18.8 million. The agreement will enable MZB to expand its reach in Canada and Club Coffee to enhance its U.S. presence. The equity investment is expected to be finalized before the end of December.

MZB's collaboration with Club Coffee includes bringing its certified 100% compostable PurPod 100 single-serve hot beverage technology to market. MZB will be the first company to offer the eco-friendly capsules, starting with its Hills Bros coffee brand in January 2016.

In 2015, MZB introduced its Filter Cup format, which is made of much less plastic than traditional single-serve plastic cups. The two companies announced the development of PurPod100 in April, and that it had earned certification from the Biodegradable Products Institute as industrially compostable in September.

MZB USA is the North American operating unit of the Italian coffee roaster and marketer Massimo Zanetti Beverage Group. Its brands include Chock full o'Nuts, Hills Bros. and Segafredo Zanetti. It's one of the nation's largest coffee roasters. Club Coffee, founded in 1906, is a key partner for MZB in the U.S., as a leading Canadian roaster, contract manufacturer and distributor of packaged coffees.