Bregal Freshstream today announces a minority investment in Euro-Caps, the world’s largest private label manufacturer of Nespresso® compatible coffee capsules.
Euro-Caps has established itself as the undisputed leader in the Nespresso® compatible coffee capsule market thanks to its manufacturing technology, which utilises fully automated production lines, a well invested product lab and R&D process plus a dedicated and experienced Coffee Quality Team who oversee its grinding and unique blend creation operations. It has also recently launched a Dolce Gusto® compatible private label product.
Euro-Caps operates a very flexible and highly scalable platform that is able to combine outstanding expertise in coffee, capsules and packaging, with products primarily sold through food retailers but also through partnerships with coffee roasters and brands which provides complementary opportunities for growth.
The single serve coffee segment is the fastest growing subsector of the global coffee market and is anticipated to be worth just over €18bn by 2019 due in part to the “premiumisation” of the coffee market with coffee drinkers demanding increasingly higher quality products.
This deal is the 6th investment by Bregal Freshstream since the launch of its first fund in 2015. Euro-Caps is also Bregal Freshstream’s third investment in the Netherlands following its 2016 investments in Verwater, a global industrial and petrochemical contractor, and TrueNoord, a regional aircraft leasing business.
As part of the transaction, Euro-Caps management team will retain a significant stake in the business and will continue to oversee the Group’s ongoing development.
Commenting on the investment, Pascal Keutgens, Partner at Bregal Freshstream, said:
“We are delighted to be working with the Euro-Caps team during this next stage of its journey. We believe that their established and award-winning product, combined with the Group’s market-leading technology, means that it is uniquely well positioned to benefit from the increasing demand for premium coffee and we look forward to helping them deliver further sustainable, long-term growth.”
Nils Clement, CEO and Co-founder of Euro-Caps, commented:
“This is a very exciting time for us and we are thrilled to be partnering with such a supportive and experienced team. Bregal Freshstream bring with them more than just investment capital and, as well as their experience of helping to build and grow entrepreneurial businesses such as ours, we were also attracted by the fact that they are backed by a family investment fund and are therefore able to adopt a longer-term approach to our business.”