Industry: Coffee Manufacturing and Commercialization
Investment type: Build-Up
NewCoffee is the holding company established by Inter-Risco to invest in the coffee industry via the development of a build-up strategy that aims at positioning the company as one of the reference players in the market. The rational for the investment was based on the highly fragmented nature of the market, although dominated by 2 players 40.0% of the market is controlled by over 50 owners, the attractive EBITDA margins and the scope for synergies and economies of scale due to existence of excess industrial capacity. The investment strategy was based in the integration of several medium-sized companies to optimize production through a single industrial unit and to create synergies in logistics, commercial area and back-office.
The company, through the acquisition of 8 companies, now holds six separate brands, Sanzala, Caffècel, Lavazza, Bogani, Caféeira and NovoDia, that together cover a client base of approximately 8,000 points of sale throughout Portugal. Most clients are positioned at the medium-to-high end of the market and primarily operating in the lucrative out-of-home segment, with long-term contracts that guarantee a certain level of revenues. Inter-Risco invited Inovcapital (currently Portugal Ventures) and Iberpartners Cafés to syndicate this investment in June 2007. In 2009, Unicer has entered the group through the merger of its coffee operations in NewCoffee, reaching on that date the #4 position in the market. During recent years NewCoffee has successfully increased its presence in international markets, currently selling to 21 countries, and addressing new segments of the market as private label and cash&carry.
In 2016 NewCoffee recorded a turnover of Eur 22.1 Mn, benefiting from the acquisition of one more company and the integration of an additional brand, NovoDia, counting with 157 workers.