Chevalier Pacific will retain a 20% stake in Pacific Coffee and continue to benefit from the continued growth of Pacific Coffee in partnership with CRE.
Pacific Coffee is a leading coffeehouse chain in Hong Kong and has established a strong brand in the market. The coffeehouse chain currently has 95 stores, including 90 owned stores, of which 83 are in Hong Kong, three are in the Chinese Mainland and four are in Singapore. Five franchised stores are located across Malaysia, Macau, Foshan and Shenzhen.
Pacific Coffee will provide CRE with a new revenue stream with large growth potential. According to Euromonitor, retail coffee consumption in China is expected to grow by more than 35% over the next four years, to about 45,900 tonnes by 2014.
CRE’s network of around 2,900 retail stores in China will help drive Pacific Coffee’s growth in this market by increasing foot traffic and revenue through co-location. The coffeehouse chain will also have access to CRE’s sourcing and logistical capabilities, as well as its managerial and financial strength and retail expertise in securing more cost-efficient rental arrangements for store expansion in China.
Chen Lang, MD of CRE, said: “Our acquisition of the 80% stake in Pacific Coffee will provide CRE with a strong foundation to capture growth. Our goal is to build Pacific Coffee into the number one coffeehouse brand in China.”
Source: China Resources Enterprise
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