Coca-Cola Hellenic Bottling Company’s (HBC) wholly-owned subsidiary CC Beverages Holdings II has agreed to acquire 30% equity shareholding in Italian coffee company Casa Del Caffè Vergnano.

Caffè Vergnano is said to be the oldest coffee roaster in Italy. Its portfolio includes traditional espresso, which is offered in various blends, packages and formats such as beans, roast and ground coffee and single portioned pods.

Caffè Vergnano Board of Directors chairman Carlo Vergnano and CEO Franco said: “We are very pleased to welcome Coca-Cola HBC as our new strategic partner to help accelerate our growth ambitions and support the journey of our brands outside our home market.

“By combining Coca-Cola HBC’s expertise, know-how and critical mass, with our heritage coffee brand, great products and deep knowledge of the industry, we are confident this will prove a powerful partnership in growing our business further.”

Subject to customary closing conditions and regulatory approvals, the deal is expected to close in the second half of 2021.

Upon the completion of the deal, Caffè Vergnano products portfolio would be part of Coca Cola’s existing Costa Coffee collection.

Additionally, the companies will enter an exclusive distribution agreement, under which Coca-Cola HBC will distribute Caffè Vergnano’s products in its operating territories outside of Italy.

The deal is expected to enhance Coca-Cola HBC’s footprint in the coffee category.

Furthermore, it will help Caffè Vergnano to expand its potential through Coca-Cola HBC’s leading route to market network and commercial capabilities.

Coca-Cola HBC CEO Zoran Bogdanovic said: “With Caffè Vergnano, we are well-positioned to build a total coffee portfolio that caters for a diverse range of consumer preferences.

“Our investment in Caffè Vergnano is aligned with The Coca-Cola Company as we have worked together on this opportunity.”

The financial details of the deal were not disclosed.