Nestlé SA, the world's largest packaged food group, announced Tuesday that it has signed an agreement to take over Caravan Marketing Company SAE (CMC), a leading Egyptian instant coffee company owner of the Bonjorno brand. The acquisition reflects Nestlé's ambition to invest in Egypt and foster the development of the rapidly growing soluble coffee segment which has been gaining popularity among Egyptians. Terms of the transaction were not disclosed. "We are pleased to conclude the signature of this agreement. Our investments and expansion plans in Egypt reflect the importance of this market to us. In the last 5 years Nestlé has made investments close to 1 Billion Egyptian pound in manufacturing and distribution facilities as well as skill development. We will continue to invest in the Egyptian market and this acquisition comes as a reaffirmation of that." Yasser Abdulmalak, Chairman and CEO of Nestlé Egypt, said. "The acquisition will capitalise on the complementary strengths of the two brands Nescafé and Bonjorno, accelerating the development of the soluble coffee market in Egypt. We are proud that Bonjorno a local brand loved by many Egyptians, will become part of our wide portfolio of international brands." Abdulmalak added. "We are keen on ensuring a smooth integration process in the best interest of the business and all employees. This is an exciting growth opportunity in a dynamic category. The acquisition will combine Nestlé's strong marketing & innovation capabilities with Caravan's distribution model and significant presence in retail. The blend of people from the two organisations will create a leading team, ideally suited to drive future growth." Caravan Marketing was established in 2003 as a marketing and distribution company. The company serves the Egyptian market with a range of soluble coffee products, using its own factory. Nestlé Egypt is a wholly owned subsidiary of Switzerland-based Nestlé Group.
