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June 2, 2010

CCD increases its international presence



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Amalgamated Bean Coffee Trading Company Ltd (ABCTCL) has recently acquired a Czech Republic caféchain – Café Emporio, for a value of Rs 15 crore.

 

The Café Emporio chain has 11 cafes in Czech Republic, seven of which are located in Prague and one each in Brno and Olomouc, while two are at Freeport-Hate. Café Emporio also runs on two formats similar to CCD’s - regular cafés and lounge formats - one that’s a pure play café serving hot and cold beverages and ready-to-eat snacks, while the other, a lounge style with a larger food menu. CCD and Café Emporio share similar synergies in respect with style of operation and menu offerings.

 

This acquisition represents CCD’s intent to increase its international presence, especially in the Centraland Eastern European region. Elaborating on the importance of expanding in the region, Swetha Shetty, president, international business for Café Coffee Day said, “We believe that large investments in the last seven to eight years in Central and Eastern Europe, together with the birth of a strong new private sector has had a positive impact on making East European countries attractive emerging economies.”

 

She also brought light to the growth strategy of CCD and said, “Our strategy is to grow both organicallyand inorganically, with a larger weightage towards the latter. At the moment we are exploring several acquisition options to increase our footprint in this region.’

 

Café Emporio cafes will soon be co-branded ‘Café Coffee Day-Emporio' and will look towardstransitioning to CCD over a period of 18 months. The company intends to use the existing manpower at Café Emperio, but will also look to station a few of their brew masters and operations personnel to enable free-flow of best business practices from the India operations.