Food Empire expands in Central Asia with US$30M coffee factory in Kazakhstan
The new facility in Khorgos will boost coffee production for Kazakhstan and neighboring markets, strengthening Food Empire’s regional presence.
KAZAKHSTAN – Singapore-listed Food Empire Holdings is expanding its footprint in Central Asia with a new US$30 million coffee production facility in Kazakhstan.
The factory, located in Khorgos near the China border, is expected to enhance the company’s supply capabilities in the region.
The project is backed by a US$10 million loan from the European Bank for Reconstruction and Development (EBRD). Once operational next year, the facility will produce coffee for retail and foodservice customers, including the company’s flagship MacCoffee brand.
This marks Food Empire Holdings’ first coffee production site in Kazakhstan. The company already operates a tea factory in the country, having acquired local business Tea House in 2023.
CEO Sudeep Nair highlighted the region’s potential, stating, “Kazakhstan has a high proportion of middle-income earners and is one of the fastest-growing economies in Central Asia. The rising coffee culture, driven by convenience and premium instant beverage options, presents a strong opportunity for growth.”
The facility will serve markets across the region, including Uzbekistan, Azerbaijan, Turkmenistan, Tajikistan, and Georgia.
Additionally, Food Empire aims to address logistical challenges in Central Asia, where cross-border trade can be inconsistent.
“Over the years, we have built strong partnerships with logistics providers and leveraged digital tools to optimize our supply chain. The factory’s location near China also allows us to efficiently source and import raw materials,” Nair added.
Food Empire Holdings operates four other coffee-mix production plants in Malaysia, Ukraine, Vietnam, and Russia. The company is also planning another coffee facility in Vietnam, set to launch in 2028.
In 2024, Food Empire reported US$476.3 million in revenue, an 11.9 percent increase from the previous year.
Its Ukraine, Kazakhstan, and CIS business unit saw a 12.6 percent rise in revenue, reaching US$124.7 million. Russia remained its largest market, generating US$141.7 million in sales, though this marked a slight 1.1 percent decline year-on-year.
Despite strong sales, Food Empire’s net profit after tax fell 6.4 percent to US$52.9 million, partly due to high global coffee prices.
The new Kazakhstan facility is expected to enhance efficiency and competitiveness, strengthening the company’s position in Central Asia’s expanding coffee sector.
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