S&D Coffee Acquired by Cott Corp.

WTN160809_ART_LOGO-S&D New Facility-lo res

S&D Coffee’s Concord, N.C.-based facility.

S&D Coffee, the largest foodservice supplier of tea and coffee in the U.S., was acquired last week for $355 million by Cott Corp., a Canadian beverage company located in Tampa, Fla.

Cott is a $3.3 billion conglomerate with 12,500 workers in 21 countries manufacturing a range of beverage products including recently acquired Eden Springs water and private-label carbonated beverages.

The 89-year-old S&D is based in Concord, N.C., where it employs 1,500 and operates three coffee roasting and tea blending facilities. The company expects to earn $550 million in 2016.

S&D Coffee supplies coffee and tea for brewing at thousands of McDonald’s as well as Krispy Kreme and Dunkin’ Donuts outlets. Its clients include restaurant, convenience, gas station, hospitality and private-label retailers.

“The synergies S&D has with Cott, whether technology, supply chain, product, distribution channels or markets, are abundantly clear,” writes CEO Ron Hinson in a release announcing the sale. S&D will roast and grind the beans to supply Cott’s DS Services unit, said Jerry Fowden, Cott’s CEO.

“Every time you wander into a restaurant these days, there’s a new flavor of some iced, frozen beverage, many of which are in the coffee space,” Fowden said. “S&D is a leading extract and ingredient supplier behind that trend,” Fowden told the Tampa Bay Business Journal.

S&D will operate as a subsidiary retaining its name and management team.

WTN160809_ART_LOGO-Cott Corp -lo resCott has been seeking to reduce its portfolio of carbonated beverage offerings, which now account for 12% of revenue.

Fowden said the addition of S&D “brings our Better for You beverage platform to over 65% of our adjusted EBITDA on a pro-forma basis with carbonated soft drinks representing just 12% of adjusted EBITDA. After closing the S&D acquisition, we will have a leading position in the coffee and tea foodservice industry in North America, which is an excellent complement to our leading HOD water, office coffee and filtration business,” according to Food & Beverage.

Sources: Tampa Bay Business JournalFood & Beverage

Dan Bolton

About Dan Bolton

Dan Bolton edits STiR Tea & Coffee Industry International. He was formerly editor and publisher of World Tea News and former editor and publisher of Tea Magazine and former editor-in-chief of Specialty Coffee Retailer. He is a beverage retail consultant and frequent speaker at industry seminars and conferences. His work has appeared in many beverage publications. He was a newspaper reporter and editor for 20 years prior to his career in magazines. Dan is the founding editor of Natural Food magazine and has led six publishing ventures since 1995. He lives in Winnipeg, Canada.