BRAZIL – Louis Dreyfus Company (LDC), a leading merchant and processor of agricultural goods, has signed a binding agreement with Companhia Cacique de Café Solúvel (Cacique), Brazil’s largest independent producer, processor and exporter of soluble coffee, to acquire 100% of Cacique shares. 

“This development is aligned with LDC’s strategy to diversify revenue streams through value-added product lines – in this case, by accelerating the scale-up of LDC’s soluble coffee business,” remarked Michael Gelchie, LDC’s Chief Executive Officer. 

The acquisition marks a strategic move for LDC, aiming to position itself among the world’s largest soluble coffee producers.  

Ben Clarkson, LDC’s Global Head of Coffee, highlighted the expansion in Brazil, where LDC has been active for over 80 years, stating, “With its in-depth market knowledge and recognized brand in the industry, Cacique’s highly complementary profile will strengthen and consolidate LDC’s soluble coffee activities.” 

Cacique, a global leader in soluble coffee production, operates in over 70 countries and possesses top-tier industrial expertise. The company boasts two processing assets in Brazil and a workforce of approximately 1,000 employees. 

“We are pleased to announce this agreement with LDC, whose global reach and extensive expertise in coffee merchandizing will undoubtedly benefit our network of growers and customers,” affirmed representatives of Cacique, expressing confidence in the deal’s potential for continued growth. 

The agreement signals a new chapter for Cacique, with assurances from its leadership that the company’s legacy and culture will be preserved.  

“We are confident that our employees will benefit from this new chapter for Cacique,” emphasized Cesario Coimbra, João Paulo Coimbra, and Horácio Coimbra Neto, heirs to Cacique’s founding legacy. 

However, the completion of the acquisition remains contingent upon regulatory approvals and customary closing conditions.  

Once finalized, the collaboration between LDC and Cacique is poised to reshape the landscape of the soluble coffee market, leveraging expertise and heritage to drive future growth. 

Recently, LDC launched its own juice bran, starting in France, seeking to use its orange production in Brazil to tap into demand for fresh and traceable fruit juices. 

In 2023, LDC recorded US$50.6 billion in net sales with stable Segment Operating Results at US$2,607 million and EBITDA that reached US$2,222 million.  

“Both of our business segments contributed positively to our solid results for 2023, successfully navigating a complex environment, thanks to our global network, market insight and risk management capabilities, as well as an ongoing drive for cost and operational efficiency,” said Michael. 

Building on its baselining work, LDC’s Carbon Solutions team delivered a detailed climate transition plan in 2023 to set LDC on a clear decarbonization path, leading to the Group’s near-term target to reduce Scope 1 and 2 emissions by 2030, and the calculation of LDC’s global Scope 3 emissions footprint for the year 2022, as a baseline for target-setting in due course.    

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