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Supply Chain

Louis Dreyfus Company Agrees To Buy Brazilian Coffee Maker Cacique

By Reuters
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Louis Dreyfus Company Agrees To Buy Brazilian Coffee Maker Cacique

Agricultural commodity merchant Louis Dreyfus Company (LDC) has signed a binding agreement to acquire 100% of Brazilian soluble coffee maker Companhia Cacique de Café Solúvel (Cacique), the companies said.

Cacique is one of the largest independent global producers, processors and exporters of soluble coffee by volume, with two processing assets in Brazil and approximately 1,000 employees, the joint statement said.

The acquisition will expand LDC's soluble coffee business after it entered the market last year through a joint venture in Vietnam and add to its green coffee trading business in Brazil.

A Shift In Focus

LDC, which handles farm goods from sugar to cotton, has partly shifted its focus towards the consumer end of the food chain to become less reliant on commodity trading.

"This development is in line with LDC's strategy to diversify revenue streams through value-added product lines - in this case, accelerating the expansion of LDC's soluble coffee business," said Michael Gelchie, chief executive officer of LDC.

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Ben Clarkson, global head of coffee at LDC added, "This acquisition will further expand LDC's business in Brazil, where the group has been operating for over 80 years, complementing our existing green coffee trading operations in the country.

"With its in-depth knowledge of the market and recognised brand in the sector, Cacique's highly complementary profile will strengthen and consolidate LDC's soluble coffee activities," he said.

Financial terms of the deal, which is subject to regulatory approvals, were not disclosed.

Recently, the company launched its own juice brand, starting in France, seeking to use its orange production in Brazil to tap into demand for fresh and traceable fruit juices.

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Elsewhere, a recent study, published in the Journal of Chemical Technology and Biotechnology, suggested that used coffee grounds could be repurposed to help clear up environmental toxins in agriculture.

News by Reuters, additional reporting by ESM.

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