Singapore's leading instant-coffee maker, Super Group Ltd., said that they are seeking to make their first acquisition in a decade. Super Group Ltd. is currently in a battle with rival Nestle SA for a larger share of the instant coffee markets of China and Southeast Asia.
"We are building our war chest for acquisitions," Super Group's head of corporate strategy and business development, Darren Teo, said. "Organically, the company is doing well, but we are looking at ways we can expand faster. We are at the right time of the growth story."
"The seller of the Owl and Super Coffeemix brands wants to add 'fast-growing' coffee producers with established labels", Teo added.
Super Group Ltd. said that they want to buy beverage makers as part of the expansion of its repertoire of non-coffee brands. Coffee consumption in the Philippines and Vietnam surged by 55% in the last four year, ten times faster than the usual average. In 2008 to 2011, food and beverage purchase in Southeast Asia racked in an estimated US$4.2 billion.
Super Group, a direct rival of Nestle, said that they are interested in businesses with production facilities that handles ready-made ingredients and has an established distribution network.
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