USA: Peabodys Coffee Revises Arrosto Acquisition
Peabodys Coffee Inc., announced it has entered into a revised Letter of Intent, dated May 1, 2000, to acquire certain assets, including the coffee roasting operation, of Arrosto Coffee Company, a specialty coffee company operating in southern California. Arrosto is a branded coffee chain and roaster originally developed and launched by KOO KOO ROO. Details of the acquisition were not disclosed. Elliott, Lane & Associates, Inc. introduced Arrosto Coffee to the company as an acquisition candidate in December of 1999, whereby a LOI was executed between the two companies. The new LOI has substantially restructured the asset purchase to eliminate all retail store operations from the transaction. Todd Tkachuk, President/CEO of Peabodys stated, "Our new agreement is far more favorable for both parties, eliminating high-street retailing from the equation and allowing us to stay focused on fast growth within our core segment of the market. We are not looking to bang heads with Starbucks - the specialty coffee market is robust and plenty diversified, offering growth and consolidation opportunities in our niche." Tkachuk added, "One of the assets we are acquiring from Arrosto is their coffee roasting operation that will be used to custom roast the Peabodys branded coffee for direct sale Business to Business and Business to Consumer from our website. Adding the roasting plant accomplishes our goal of securing our supply to support both our existing operations and the development of e-commerce via the internet." "We are currently in discussions with several other acquisition targets that we hope to bring to the table in the near future to help fuel our growth plans," said Tkachuk.
Get full access to all content, just $1 for 30 days
A Message From The Editor
just-food gives you the widest food market coverage.
Paid just-food members have unlimited access to all our exclusive content - including 16 years of archives.
I am so confident you will love complete access to our content that today I can offer you 30 days access for $1.
It’s our best ever membership offer – just for you.
Dean Best, editor of just-food
- Unilever 2016 investor day - the top takeaways
- The key questions for digital strategists in 2017
- Have food promotions reached tipping point?
- ABF on Brexit, M&A and grocery - interview
- How Tyson's new CEO plans to grow the meat group
- General Mills jobs to go in business revamp
- Japan's Nagatanien buys Chaucer Food Group
- B&G acquires pasta sauce group Victoria Fine Foods
- Nestle unveils process to cut sugar by 40%
- Tyson sets up US$150m investment fund