Nestlé to acquire Egyptian instant coffee company Caravan

17-Jan-2017 - Last updated on 17-Jan-2017 at 10:57 GMT

Instant coffee is growing in popularity with Egyptians, says Nestlé. Pic:iStock/VIPDesignUSA

Nestlé is to acquire Caravan Marketing Company SAE, the Egyptian instant coffee company behind the Bonjorno brand, eyeing up the ‘rapidly growing’ soluble coffee segment in the country.

Caravan was established in 2003 as a marketing and distribution company, and now serves the Egyptian market with a range of coffee products from its own factory.

Terms of the transaction were not disclosed.

‘Ideally suited to future growth’

Nestlé has invested nearly 1 bn EGP ($53m) in manufacturing and distribution facilities and skill development in Egypt over the last five years.

Yasser Abdulmalak, chairman & CEO of Nestlé Egypt, said: “Our investments and expansion plans in Egypt reflect the importance of this market to us.

"We will continue to invest in the Egyptian market and this acquisition comes as a reaffirmation of that.”

Nestlé says that its Nescafé brand and Caravan’s Bonjourno have complementary strengths, which together can accelerate the development of the soluble coffee market in Egypt.

“The acquisition will combine Nestlé’s strong marketing and innovation capabilities with Caravan’s distribution model and significant presence in retail,” said Abdulmalak.

“The blend of people from the two organisations will create a leading team, ideally suited to drive future growth.”