With consumer consciousness growing in the area of sustainable food supply, food distribution is looking for methods to embrace, adapt and improve its environmental performance, while still remaining economically competitive. Until recent innovative solutions were developed, coffee pods have been considered as an ecologically unsound approach to single-serve beverages. Some have argued that reverse logistics (recycling) is a better option than green supply chain management (composting). With a particular focus on coffee pods a case study on Club Coffee, which focuses on green supply chain management, is presented for the design of a capacitated distribution network for a two-layer supply chain involved in the distribution of coffee pods in Canada. Our investigation shows that Club Coffee's relationship is not only critical to fostering the green supply chain ideology, but it is also unique in the business. Findings are presented and limitations and future research are proposed.