coffee round up

Zanetti buys Damasco

Brazil

Massimo Zanetti Beverage Group has entered into an agreement to buy leading Brazilian coffee roaster Cafe Damasco, based in Curitiba, Brazil.

The purchase is expected to complete by the end of December.

The purchase will see Massimo Zanetti becoming Brazil’s fourth largest coffee company. It will market over 3 million bags of green coffee globally every year.

Cafe Damasco owns several brands including Bom Tai, Pacheco e Palheta, Copacabana, Maracana and Negresco.

Read more

Peet’s buys Diedrich

US

Diedrich Coffee Inc, the Irvine, USA-based coffee roaster and distributor, has announced that it is to be bought by by Peet’s Coffee & Tea Inc. in a deal estimated to be worth around US$213 million in cash and stock.

Peet’s, based in Emeryville, California, offered the equivalent of US$26 for each Diedrich share, or 28% more than the last closing price of US$20.36.

Peet’s is expected to see gains in its wholesale business once the deal completes, and the company has announced thast it expects to triple sales of its coffee beans to US grocery stores by 2014.

"The Diedrich acquisition represents another major strategic growth initiative for our consumer packaged coffee business," said Patrick O’Dea, Peet’s chief executive.

Lavazza in Chennai

India

Italian coffee roaster Lavazza sees India as the perfect base from which to expand its operations throughout the Asia-Pacific region, despite less-than hoped for returns from its purchase of theBarista coffee shop chain.

Read more

Minimum support price

Nepal

Farmers and traders in this Himalayan nation have agreed to maintain a minimum support price for coffee due to the ongoing financial crisis and high input costs.

The agreement was decided on by coffee farmers and traders at a recent meeting held in the presence of Ministry of Agriculture and Cooperatives (MAC) and Nepal Tea and Coffee Development Board (NTCBD) representatives

According to Binaya Mishra, executive director of NTCDB, quoted in local newpapers, fresh cherry and parched coffee has been fixed at Rs27 and Rs142/kg respectively (US$0.37 and US$1.93). Dry cherry in categories A, B and C have been priced at Rs80, Rs55 and Rs20/kg respectively.

Read more

200,000 ton MOU

Vietnam

Vietnamese coffee exporter Intimex has agreed to sell up to 18% of Vietnam’s 2009/2010 coffee harvest, or approximately 200,000 tons, to international trading companies Armajaro and Louis Dreyfus. The move is intended to help finance the company’s purchases from farmers.

Under the terms of a memorandum of understanding it signed with Armajaro, Intimex is understood to have committed to sell 100,000 tons of coffee from September 2010.

The company has also reportedly signed a contract agreeing to 100,000 tons of coffee with a US$140 million value to Louis Dreyfus.

Read more

Typhoons spare coffee