The largest food service coffee and tea supplier in the US was purchased in August for $355 million by Canadian conglomerate Cott Corp.
S&D Coffee, headquartered in Concord, N.C., supplies coffee and tea to McDonalds, Dunkin’ Donuts, Bojangles, and Krispy Kreme among many other food service clients.
The 89-year-old company,which employs 1,150 will keep its name and management team, operating as a Cott subsidiary.
S&D c.e.o. Ron Hinson said that “the synergies S&D has with Cott, whether technology, supply chain, product, distribution channels, or markets, are abundantly clear.”
Cott produces beverages sold in the US and to European retailers and delivers bottled water (Eden Springs) to homes and offices in North America and Europe. Cott is trying to diversify its offerings, trimming its once soda-heavy line to 12% of adjusted earnings. S&D is a dominate player in fresh brewed tea at food service locations and recently began expanding its offerings to include carbonated teas and flavored milk. Revenue is projected at $550 million in 2016 with an expected $40 million in profits.
Cott, with annual revenues of $3.3 billion, employs more than 12,500 workers in 21 countries. In its latest earnings release Cott reported $766 million in revenue with profit margin of 33%. Shares jumped 10% on word of the sale.
Learn more: www.cott.com