Food Empire Group, a Singapore-based FMCG company, has acquired a majority stake of around 80 percent in Positive Food Ventures’ Brewhouse. While the company has not revealed financial details related to this transaction, some reports suggests that the deal is worth around ₹4 crore.
The acquisition of Brewhouse will now enable the Singapore-based company to establish its presence in the Indian market and bring its own beverages and snacks to the market.
With the new capital infusion, the company is now looking to spend the money to increase its production capacity and expand its geographical reach.
Commenting on this development, Siddhartha Jain, MD of Positive Food Ventures, said,
We hope to get our manufacturing units ready by January. We want to expand to Bangalore and later Mumbai.
Dheeraj Jain Managing Partner at Redcliffe Capital who backed Brewhouse at the early stage, said,
We believe the ice tea category has the potential to reach Rs. 500-600 crore in sales in a few years. As the first-mover and market creator of this particular niche, we plan to capture the lion’s share of this volume.
Currently, Brewhouse offers 3 variants of ice teas and claims to have sold around 70,000 bottles across various QSR outlets in and around Delhi since its launch. It has one production unit in Delhi and is in talks to set up 2 more in Noida and Chennai through partnerships with third-party manufacturers.