Louis Dreyfus to Buy Brazilian Instant Coffee Maker Cacique

LDC has agreed to acquire 100% of Brazilian instant coffee maker Companhia Cacique de Café Solúvel (Cacique), a large independent coffee processor with around 1,000 employees. The deal, subject to regulatory approvals, will expand LDC’s soluble coffee business after entering the market last year through a joint venture in Vietnam, the world’s top grower of robusta beans. Robusta coffee futures in London are trading at the highest levels since the contract was launched in 2008 due to tight supplies in Asia. Brazil has increased its global share of robusta trade, while unfavorable weather led to smaller crops in Vietnam and Indonesia. LDC, which handles farm goods, has shifted its focus towards consumers to become less reliant on commodity trading.

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