Outspan International

History

2022: Lalibela acquires Outspan International coffee assets in Russia

On November 18, 2022, the deal for the sale of coffee production Outspan International (part of the Olam International group RUSSIAN FEDERATION the Russian) in Lalibela Coffee, which produces natural coffee under the Lalibela brand, was closed.

Under the terms of the agreement, Lalibela Coffee LLC acquired a granular instant coffee packaging plant located in Yakhrom, Moscow Region. Its capacity is 7 thousand tons per year, which, according to Dmitry Gushchin, General Director of Lalibela Coffee, may account for about 7.5% of the total consumption of instant coffee in Russia. He recalled that the consumption of instant coffee as of 2021 was estimated by Rosselkhozbank at 93 thousand tons.

Russian natural coffee producer Lalibela bought Olam International coffee assets in Russia

{{quote "We plan to invest about $9 million in the development of this segment, which, with the current shortage of free production capacities and high-quality semi-finished instant coffee in Russia, will allow us to load the plant's capacity to the maximum. Yahrom will produce a product under its own brand name Lalibela, as well as place orders of federal retail chains to produce their STM in the soluble coffee category, Gushchin said. }} He clarified that a subsidiary of Lalibela Packaging was created to manage the new asset. Jobs and operational processes have been preserved, the company is establishing supplies of raw materials to ensure continuous production and launch new brands, Gushchin added. The financial terms of the transaction were not disclosed.

Lalibela Coffee has a full-cycle coffee production with a capacity of 5 thousand tons in Smolensk. The company's products - blends of grain and ground coffee, are sold on the largest marketplaces, are presented in federal retail chains and restaurants in Russia.^[1]

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