STiR coffee and tea magazine

STiR coffee and tea 15 NEWS STiR: Was there something about Petroncini's equipment or technology that attracted you? Maldarelli: Whenever IMA approaches a potential acquisition, we first try to understand what is going to be part of the group so that the acquisition makes sense from a strategic point of view. Second, we understand that the potential seller has technology that complements our needs. So, we look for nice, maybe small, but high technology companies that can grow with our strength and our support to a bigger industrial level. When we looked at Petroncini, I can tell you that incredibly even for me they already achieved a very high-level customer base. This really switched on the lamp and said that the technology is there. They are not where the [larger roaster] competi- tors are because they did not have the opportunity and strength and power of investing and growing. With us, there is a chance to grow. This is already taking place. STiR: Petroncini c.e.o. Claudio Giberti recently told STiR the decision to sell his company to GIMA was an easy one. It was good for the company and good for his employees, he said. Was the decision to acquire Petroncini just as easy for you? Maldarelli: The decision was easy especially because apart from the assets we found an owner [in Claudio Giberti] who was willing to sell and allow IMA to enter and participate. Claudio is a passionate man of the market. He is really driven; he is the real engine of the company. When we approached the company we immediately understood the strength of the company was there. IMA is quite used to make acquisitions and the way we work is very easy. We have a very consultative decision-making procedure. When we enter a company it's not like we a conquer a company and place a flag and say this is mine and from tomorrow all the rules will be changed. We don't change the rules of the game because, if it's doing well, the company needs to continue. We come as service people. What do you need? You need more production capabilities. You need engineers. We operate at any level as a support for the company. This is a strength. This is our approach, our way to work. STiR: GIMA's coffee position relies on the single-serve capsule. Do you have any thoughts about the future of single-serve? Maldarelli: I can give you my viewpoint today, but I don't have a crystal ball. In general, the coffee market is a very appealing market from any point of view. And no doubt single-serve will continue to generate a huge opportunity for everybody and for the consumer as well. We are in a moment of the market where I think there is a process underground working to eliminate what is understood as a sustainability issue. This will generate a change in the [cup] material but it won't be a dramatic change from a technology point of view. We are just looking at different [packaging] material and this will generate a different appeal in the market as well. From our point of view as the machine supplier, this will be a smooth change. On drip coffee there is no doubt that the Keurig platform is leading North America in terms of [single-serve] business and leadership, while for espresso capsules the market is a bit more fragmented with Nespresso being the most popular platform but with Caffitaly, UCC, Lavazza and other main players who keep invest- ing and innovating to get closer to the market leader. Focusing on North America, Keurig became part of a huge group [JAB Holding Company] that is willing to become close to number one in coffee. And this, for sure, will generate investment. It will be a change in order to renovate the way the single- serve is proposed to us. Most likely, eventually [success will come to the company that] has the chance to invest in technology and try to reduce the total cost of ownership without impacting quality and try to be a little bit more challenging in the market. This can be an opportunity, even for us, because when you provide technology it can be an opportu- nity in a new era of single serve. This is what I see personally. The process is going to be long but the change will take place sooner or later. IMA at a Glance Founded: 1961 Revenue: $1.55 billion (2016) Labor force: 5,000 employees, 2,300 based overseas Seniority: 1,400 employed at least 10 years

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