US coffee supplier FairWave Specialty Coffee Collective has acquired two local peers – Folly Coffee Roasters and Philtera Cold Brewed Coffees.
The deals are the latest to be made by Missouri-based FairWave since it was launched in 2020 by private-equity firm – and majority shareholder – Great Range Capital to “support and grow locally-branded coffee companies”.
Folly Coffee Roasters and Philtera Cold Brewed Coffees are both based further north in Minnesota.
They join two other Minnesota-based businesses – Up Coffee and Spyhouse Coffee Roasters – in the FairWave portfolio. The duo were acquired in 2022 and 2021 respectively.
Financial terms were not disclosed. As part of the deal, the founders of Folly and Philtera have become minority shareholders in FairWave.
Folly, set up in 2018, sells coffee through major US grocer Target, directly to consumers online and via the restaurant and café channel.
Philtera, founded the same year, markets cold-brew coffee through the wholesale channel.
“With them joining the collective and sharing resources, we can bring more specialty coffee experiences to people throughout the region,” FairWave co-founder Dan Trott said.
“FairWave will propel Folly and Philtera’s growth by providing the brands access to more direct-farm relationships, complementary allied products for their customers and best practices in the direct-to-consumer sales channel.”
FairWave would not disclose the sales, nor the profits, of any of the three businesses.
Last week, coffee giant Nestlé said it was weighing up the options for its factory in Freehold, New Jersey.
Other deals in the US coffee market this year include Arkansas-based Westrock Coffee buying California’s Bixby Roasting Co.