The combined business will become New Zealand’s number one player in both coffee and tea. Netherlands-based JDE has over 260 years of history with brands such as Moccona, Jacobs, Piazza Doro and L’Or capsules. JDE New Zealand and BrewGroup have complementary product portfolios of fresh and freeze dried soluble coffee. As a consequence of the transaction, JDE will bolster its own brand portfolio with BrewGroup’s leading stable of brands that include Bell Tea, Gravity, Jed’s, Burtons and Hummingbird. The transaction represents an exciting step in the growth of both businesses.
Pencarrow, alongside ACC and management, acquired BrewGroup from Foodstuffs in October 2013, intending to support management in achieving long term growth for the business. Under the period of Pencarrow’s ownership, BrewGroup’s revenue and earnings increased significantly through a combination of initiatives, including rapidly expanding the domestic grocery and out-of-home businesses, doubling export sales, increasing the rate of NPD and acquiring Hummingbird Coffee.
The offer is subject to a limited number of pre-closing conditions and approval by the New Zealand Overseas Investment Office. Pencarrow is very pleased with the performance of BrewGroup under its stewardship and the outcome delivered for the Fund’s investors. BrewGroup is positioned to grow strongly under the ownership of JDE who are capable of realising the company’s full global potential.
For additional information, please contact either Nigel Bingham or Rod Gethen.