Mitsubishi and Colcafé to establish 50:50 coffee JV in Malaysia

Japanese trading firm Mitsubishi has signed a 50:50 joint venture (JV) deal with Colcafé, a subsidiary of Colombian food firm Grupo Nutresa, to establish Oriental Coffee Alliance, a platform from which to expand in Asia.

According to Mitsubishi, the demand for instant coffee in Asia has been significantly growing in recent years and the trend is expected to continue.

To be headquartered in Kuala Lumpur, the JV will provide the parties with a strategic base for expanding their business in the instant coffee segment to tap into the increasing consumer demand for coffee in Asia.

Mitsubishi stated that it will work to strengthen its supply chains in emerging markets for coffee as well as other consumer goods.

In addition, the company will use its expertise in creating robust long-term business networks with leading companies worldwide, both from Japan and overseas.

Headquartered in Antioquia, Colombia, Nutresa engages in the manufacture and sale of products in six segments, including cold cuts, biscuits, chocolates and coffee, and has a workforce of 31,650.

Colcafé specialises particularly in the manufacture and sale of instant coffee, and has earned Nutresa a positive reputation among global beverage companies.

Tokyo-headquartered Mitsubishi is a global business that operates in various segments, including finance, energy, metals, chemicals, foods and environmental business.

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Image: The JV will provide Mitsubishi and Colcafé with a strategic base for expanding their business in the instant coffee segment. Photo courtesy of John Nyberg.