Food Empire Group acquires Positive Food Ventures’ Brewhouse for Rs 4 crore
, ET Bureau|
Updated: Dec 18, 2017, 11.54 AM IST
MUMBAI: Singapore FMCG firm Food Empire Group has acquired an 80% stake in Positive Food Ventures’ ice tea brand Brewhouse. While the company did not share details on the financials of the deal, the acquisition was made for Rs 4 crore according to sources aware of the transaction.
The acquisition will enable the Food Empire Group to enter the Indian market through the iced tea market as also bring in its own products across beverages, finger foods, snack foods and more. The 7 month old Delhi-based company is looking to use the capital to increase its production capacity and expand its geographical reach.
The acquisition will see the Food Empire Group invest further capital in Brewhouse over a long term as it expands its India portfolio.
Brewhouse which is backed by Dheeraj Jain of Redcliffe Capital, offers 3 variants of ice teas, having sold 70,000 bottles across various QSR outlets in and around Delhi since its launch.
Currently, the company has one production unit in Delhi and is in talks to set up 2 more in Noida and Chennai through partnerships with third party manufacturers. “We hope to get our manufacturing units ready by January. We want to expand to Bangalore and later Mumbai,” said Siddhartha Jain, MD of Positive Food Ventures.
With the new production centres helping to boost volumes, Brewhouse is looking to widen its reach across the QSR chain in newer markets while also enable sales through online e-commerce marketplaces starting February.
"We believe the ice tea category has the potential to reach Rs 500-600 crore in sales in a few years. As the first-mover and market creator of this particular niche, we plan to capture the lion’s share of this volume," said Dheeraj Jain Managing Partner at Redcliffe Capital who backed Brewhouse at the early stage.
The Food Empire Group first entered India in 2012-13 with a $30 million greenfield investment in an instant coffee plant in Andhra Pradesh, a 100% export oriented unit. Its Brewhouse acquisition will enable a direct channel for the group’s India entry over the next year.
The acquisition will enable the Food Empire Group to enter the Indian market through the iced tea market as also bring in its own products across beverages, finger foods, snack foods and more. The 7 month old Delhi-based company is looking to use the capital to increase its production capacity and expand its geographical reach.
The acquisition will see the Food Empire Group invest further capital in Brewhouse over a long term as it expands its India portfolio.
Brewhouse which is backed by Dheeraj Jain of Redcliffe Capital, offers 3 variants of ice teas, having sold 70,000 bottles across various QSR outlets in and around Delhi since its launch.
Currently, the company has one production unit in Delhi and is in talks to set up 2 more in Noida and Chennai through partnerships with third party manufacturers. “We hope to get our manufacturing units ready by January. We want to expand to Bangalore and later Mumbai,” said Siddhartha Jain, MD of Positive Food Ventures.
With the new production centres helping to boost volumes, Brewhouse is looking to widen its reach across the QSR chain in newer markets while also enable sales through online e-commerce marketplaces starting February.
"We believe the ice tea category has the potential to reach Rs 500-600 crore in sales in a few years. As the first-mover and market creator of this particular niche, we plan to capture the lion’s share of this volume," said Dheeraj Jain Managing Partner at Redcliffe Capital who backed Brewhouse at the early stage.
The Food Empire Group first entered India in 2012-13 with a $30 million greenfield investment in an instant coffee plant in Andhra Pradesh, a 100% export oriented unit. Its Brewhouse acquisition will enable a direct channel for the group’s India entry over the next year.
