Westrock Coffee Expands Operations with Milk Producers in Joint Venture
Source: The DairyNews
Westrock Coffee Co. has revealed plans for significant enhancements to its Extract and Ready-to-Drink (RTD) facility in Conway, Ark. Additionally, the company has entered into a non-binding letter of intent with Select Milk Producers to collaborate on the development and operation of an extended shelf life and aseptic, multi-serve bottle facility. This facility will be co-located at Select Milk’s site in Littlefield, Texas.
The announcement also included updates on preliminary full-year 2023 results and a glimpse into the company's outlook for 2024.
Scott Ford, CEO and Co-Founder of Westrock Coffee, shared insights into the expansion strategy, stating, "As we approach the final stages of completing the Extract and RTD facility in Conway, Arkansas, we made the strategic decision to broaden our extract and concentration capabilities. This expansion allows us to seamlessly add new production lines in the future without disrupting current operations. Additionally, we have increased our multi-serve bottle capacities, incorporating cold-chain capability into our facility. These enhancements position us to effectively meet the growing demand for extended shelf life and multi-serve bottles, ensuring our operational continuity and fostering future growth."
Ford expressed optimism about the joint venture with Sel ect Milk, envisioning it as a means to cater to evolving consumer preferences for coffee-based RTD and concentrate multi-serve formats, incorporating both traditional dairy and plant-based milks. The joint venture aims to establish and manage multi-serve bottle lines within a new facility that Sel ect Milk plans to construct in Littlefield, Texas. Westrock Coffee is set to supply coffee extracts and concentrates fr om its Conway facility, while Sel ect Milk will contribute milk fr om its Littlefield facility. The collaborative efforts anticipate the inaugural product to ship fr om these lines in the first quarter of 2026.
To finance the expansion of the Conway facility and the establishment of the joint venture, Westrock has successfully completed a private offering, issuing $72 million aggregate principal amount of convertible senior unsecured notes due in 2029.
Scott Ford, CEO and Co-Founder of Westrock Coffee, shared insights into the expansion strategy, stating, "As we approach the final stages of completing the Extract and RTD facility in Conway, Arkansas, we made the strategic decision to broaden our extract and concentration capabilities. This expansion allows us to seamlessly add new production lines in the future without disrupting current operations. Additionally, we have increased our multi-serve bottle capacities, incorporating cold-chain capability into our facility. These enhancements position us to effectively meet the growing demand for extended shelf life and multi-serve bottles, ensuring our operational continuity and fostering future growth."
Ford expressed optimism about the joint venture with Sel ect Milk, envisioning it as a means to cater to evolving consumer preferences for coffee-based RTD and concentrate multi-serve formats, incorporating both traditional dairy and plant-based milks. The joint venture aims to establish and manage multi-serve bottle lines within a new facility that Sel ect Milk plans to construct in Littlefield, Texas. Westrock Coffee is set to supply coffee extracts and concentrates fr om its Conway facility, while Sel ect Milk will contribute milk fr om its Littlefield facility. The collaborative efforts anticipate the inaugural product to ship fr om these lines in the first quarter of 2026.
To finance the expansion of the Conway facility and the establishment of the joint venture, Westrock has successfully completed a private offering, issuing $72 million aggregate principal amount of convertible senior unsecured notes due in 2029.
