CALGARY, CANADA - Comac Food Group Inc. has sold its Grabbajabba coffee operations to Toronto-based Timothy’s Coffees of the World Inc. for $1.35 million, reports the Toronto Star.
Grabbajabba is a chain of 56 gourmet coffee stores, located mainly in Western Canada.
Timothy’s, a private Toronto company, operates 100 gourmet coffee stores throughout Ontario, Quebec and New York City.
The Comac Group says it sold the Grabbajabba chain because it believes the company can generate higher returns on its capital by expanding the Domino’s pizza business, in which it will reinvest the money it gains from the sale.
“Selling Grabbajabba is just the first step in the repositioning of Comac,” stated Comac chairman Brian Holt.
“It’s the beginning of the execution of a plan to take Domino’s from its position of the leading national delivery chain to the Number 1 pizza company in Canada.”
For Timothy’s, the purchase of Grabbajabba provides an immediate presence in Western Canada and solidifies its position as Canada’s third-largest specialty coffee retailer, behind industry leaders Starbucks and Second Cup.
“Today’s specialty coffee market has strong national competitors gaining market share throughout Canada...,” Comac president John Beauparlant said. “To successfully compete and build brand recognition, Grabbajabba required investment of additional capital and corporate resources to grow the concept.”