The family that runs home- grown Singapore coffee manufacturer Boncafe International is selling the business to one of the world’s top coffee firms Massimo Zanetti/Segafredo for US$85 million (S$106 million)

May 30, 2014 Leave a comment

Family selling Boncafe to Italian firm

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Sunday, May 25, 2014

Rachael Boon

The Straits Times

The family that runs home- grown coffee manufacturer Boncafe International is selling the business to one of the world’s top coffee firms for US$85 million (S$106 million).

Italian company Massimo Zanetti Beverage (MZB) Group announced on Wednesday that it will acquire 100 per cent of Boncafe, established here in 1962.

The deal includes Boncafe’s roasting plants in Thailand and Singapore.

Boncafe employs about 60 staff in Singapore and another 400 in Thailand. No significant job cuts are expected.

Boncafe group chairman Connie Huber-Ting said: “The company has reached a level of growth where the stakeholders would like to take it to the next stage.”

She said MZB Group has indicated it will keep the Boncafe brand intact and will not be making massive changes.

It “has welcomed all managers and staff of Boncafe to the larger family”.

Boncafe engaged KPMG Corporate Finance six to eight months ago to explore options for expansion.

She said MZB Group emerged as a good fit, adding: “Boncafe will be well-positioned for its next phase of growth as we tap into a rising trend of gourmet coffee consumption in South-east Asia.

“Our newfound partnership will also allow us to achieve greater economies of scale and more platforms to enhance our brand profile.”

Boncafe is a leading gourmet coffee manufacturer and supplier in South-east Asia and the Middle East.

It was founded in 1962 by Mr Werner Ernst Huber, a Swiss national and former commodities trader, who died aged 87 in 2011. Mrs Huber-Ting is his wife.

He opened Singapore’s first coffee-roasting factory in Jurong to produce gourmet coffee to suit the tastebuds of the expatriate community.

His son Christian took over as managing director in 2006.

Mrs Huber-Ting said Boncafe’s consistent revenue growth reflected its healthy financial performance. Boncafe’s operating profit was US$7 million last year.

Boncafe has operations throughout Asia and the Middle East, with associate companies in markets including Malaysia, Hong Kong, Thailand, Cambodia, Dubai and Guangzhou.

It also has academies in Thailand and Singapore that offer barista training courses.

Boncafe celebrated its 50th birthday in 2012.

MZB Group is a major private player that owns brands such as Segafredo Zanetti and Chock full o’Nuts.

It reportedly manufactures 120,000 tonnes of coffee a year and produces tea, cocoa, chocolate and spices, with a total annual revenue of €1 billion (S$1.7 billion).

MZB Group president Massimo Zanetti said in a statement: “Our group will have the opportunity for further expansion in the Asian market, ensuring our production and distribution capacity is sufficient to meet the growing demand for coffee in the area.”

He said that no drastic changes will be made to Boncafe’s “successful business model”, its brand name or the management and workforce.

 

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