EGYPT – Nestlé SA, the leading food and beverage company, has announced that it has signed an agreement to acquire Egyptian instant coffee company, Caravan Marketing Company SAE.

Caravan Marketing was established in 2003 as a marketing and distribution operation serving the Egyptian market with a range of soluble coffee products.

Nestlé’s acquisition of Caravan reflects the company’s ambition to invest in Egypt and the Middle East and “foster the development of the rapidly growing soluble coffee segment which has been gaining popularity among Egyptians,” according to the company.

“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 pounds in manufacturing and distribution facilties as well as skill development.

We will continue to invest in the Egyptian market and this acquisition comes as a reaffirmation of that,” says Yasser Abdulmalak, Chairman and CEO of Nestlé Egypt.

“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. 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.”

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 sold under the brand Bonjorno Café, using its own factory.

Terms of the transaction were not disclosed.

Nestlé Egypt operates two factories in the country, employing more than 3,000 people. The company has recently added significant investments in Egypt, driven by increasing demand for food products.

In 2014, the company opened a new US$9 million extension to its 6th of October City factory.

In the company’s EMENA (Europe Middle East and North Africa Region) Zone that straddles the North Africa and Middle East, Nestlé operates 10 factories and provides direct employment to almost 8,000 people.