Smucker’s Buys Cafe Bustelo, Will End Miami Production

ORRVILLE, OH (CBSMiami) – With a name like Bustelo, it has to be good. At least, what’s what the Smucker’s Jam people seem to think. Monday, they announced they have purchased the Miami coffee-roasting company which makes Cafe Bustelo for $360 million in cash. However, the sale could mean the end of an era in South Florida.

Rowland Coffee Roasters Inc., headquartered in Miami, specializes in Hispanic coffee brands such as Cafe Bustelo and Cafe Pilon, which have their biggest sales in South Florida and parts of the Northeast with a large Cuban-American population.

The coffee has been manufactured in Miami and distributed from South Florida for decades, but Smucker said Monday that once the deal is completed, it will eventually end manufacturing operations in South Florida and consolidate them at it’s other coffee manufacturing facility in New Orleans.

Smucker is already a major player in the coffee business, selling the Folgers and Dunkin’ Donuts brands.

Rowland is a leading producer of espresso coffee in the U.S, generating more than $110 million in revenue during 2010. It is a staple of Cuban coffee, a dense, sweet expresso sold in restaurants, cafeteria windows, and just about everywhere else in South Florida.

J.M. Smucker, also makes other products like Crisco shortening and it’s namesake jams.

The deal includes Rowland’s manufacturing, distribution and office facility in Miami. The company is currently in a regulatory “quiet period” and as a result, won’t discuss the deal further until June 9, when it reports its fourth-quarter results.

It was not known when manufacturing operations in Miami would end, or how many jobs might be affected, but The Wall Street Journal reported consolidation should take place within 3 years.

  • Stan Moscat

    great maybe that could do a better in making coffee.

    • Ann

      Not enough WASP americans understand how excellent the Bustelo Brand is! I’d love for it to go ” mainsteam”. Problem is, big business does things like change suppliers and processing techniques. I tasted this happen with Seattles Best.
      Let’s hope Smucker’s doesn’t try to “fix what ain’t broken” ! Adding this brand, but not changing the FLAVOR is the perfect marketing move!

      • ckinsobe

        Smuckers has already ruined Bustelo and Pilon. They are no longer 100% Arabica beans but instead a blend. The intense aroma is gone as is the rich taste. Before selling it the owners should have ensured the “recipe” couldn’t be changed. Another disturbing thing, all of a sudden the prices are much higher AND all the other smaller Cuban brands that used to be on the supermarket shelves are completely gone. I guess Smuckers has enough pull to make Publix remove the smaller competitors. I am now not buying any Smuckers products and will get my Cuban coffee at the Cuban stores and it won’t be Pilon or Bustelo.

  • Mari

    Wonderful for South Florida, fewer jobs. Thanks Smuckers, I’ll be sure to remember that when I shop.

  • mr_slappy75

    Perhaps I may suggest to Mr. Homes to ‘Troll Harder, Troll better’? I must say that while your comment has an adequate amount of venom and the how shall I put it? Retrograde behavior that prompts the desired reaction from others, alas the rather lame attempt at pseudo racial and/or cultural slur lacks of inventiveness. I must say however that the bit about ‘boycut’ showed some promise in the linguistic creativity department, regrettably it was poorly executed.

    On to the subject matter then: Miami’s economy, indeed it’s cultural base has suffered several setbacks in the last few years –the greatest of which has been the bust of the real estate bubble- however, as a general rule Cubans are strong willed, hardworking, proud and enterprising individuals, conversely they are also fiercely loyal and yet some of the most gregarious, easy going and generous people you’ll ever meet.
    While you may wrongly presume that I am biased because I am Cuban. I am not, however I have been blessed enough to count many a Cuban as a friend or even ‘political relative’ -as they commonly known in Spanish- in my life. Some of my mother’s best friends were Cubans, whose family had lost it all when Castro came to power, they left their country ‘on a wing and a prayer’ and had to start all over again. Guess what? They did so the American way: working hard, manning up and being outstanding citizens. Which is more than I can say about some individuals born and raised here.

    New Orleans should be so lucky to get a Cuban infusion! People who actually enjoy working as much as playing? Who have a distinctive cuisine, rich in flavors and seafood based dishes? who are already used to hot summers and loud music? *snort* Troll harder my friend I do not think that last suggestion came out the way you intended it to, in truth it may turn out to be pure genius Mr. Homeskillet.

    Ms. Stephanie G. sorry to hear about your Father in Law and his family, it is a hard thing that they must face this difficult time and wish them the best.

    *one last comment about the Cuban character, Mr. HOMES: while yes they can be loud, they also tend to be straightforward, if they have an issue with you, your manners or lack thereof, they will tell you TO YOUR FACE and not snipe away behind the safety of a monitor and keyboard.

  • Suwek

    Wow Anonymous, it’s not that sriuoes! Those flavors sound perfect for the holiday season! They would even make a great teacher gift…just add bow :)

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