Java Group, a dominant figure in Dutch coffee industry, transfers ownership of Ofcay to Efor Holding, a local entity, leading to their withdrawal from the Turkish tea market.
Efor Holding Acquires Ofcay, Strengthening Position in Turkish Tea Market
In a significant move, Turkish conglomerate Efor Holding has acquired Ofcay, one of Turkey's most established tea brands, from Dutch beverage conglomerate Jacobs Douwe Egberts (JDE). This acquisition solidifies Efor Holding's tea brand, Efor Cay, as Türkiye's third-largest tea producer [1].
The acquisition, announced at a press conference held in Istanbul on Tuesday, doubles Efor Cay's production capacity and increases its processing area by 85% [1]. Ibrahim Akkus, Chairman of Efor Holding, stated that the acquisition aligns with the group's long-term industrial strategy [2].
Efor Cay, which started operating in the tea sector in the early 2000s, currently exports to six countries, including the Balkans, Russia, and Saudi Arabia [1]. Ahmet Demir, CEO of Efor Holding, mentioned that the company's export markets remain a central focus, with plans to expand its international presence beyond its existing regional markets [2].
Financially, Efor Cay is publicly traded on Borsa Istanbul, with a market capitalization around $1.3 billion, indicating a strong market valuation within Turkey's tea sector [1]. The company has also been added to the MSCI Global Small Cap Index recently, enhancing its visibility to global investors and signaling positive market recognition [2].
Under Efor Holding's ownership, Efor Cay aims to strengthen its position with a broader product portfolio, innovative production methods, and an expanded distribution network. The company is also investing in diversifying its beverage offerings beyond tea, such as coffee, iced tea, and functional drinks [3].
This marks the end of JDE's six-year involvement in Turkey's tea sector. The acquisition includes full ownership of Ofcay and its merger with the existing Efor Cay brand. Efor Holding operates across multiple industries, including energy, agriculture, fertilizers, construction, and real estate [4].
However, no information was provided about plans to grow the company's international footprint beyond the current six export countries. Akkus views the Ofcay acquisition as a continuation of Efor Holding's journey in the tea sector, with potential for further growth and expansion in the future.
References: 1. Anadolu Agency 2. Reuters 3. Trade Arabia 4. Efor Holding
- Efor Holding's acquisition of Ofcay, a prominent Turkish tea brand, extends its reach in the tea market of Turkey, now positioning Efor Cay as the third-largest tea producer in Türkiye.
- The acquisition enables Efor Cay to double its production capacity and expand its processing area by 85%, according to Ibrahim Akkus, Chairman of Efor Holding, aligning with the group's long-term industrial strategy.
- Beyond its existing six export countries, which include the Balkans, Russia, and Saudi Arabia, Efor Cay plans to expand its international presence, as mentioned by Ahmet Demir, CEO of Efor Holding.
- The acquisition of Ofcay has provided Efor Holding, an organization that operates across multiple industries such as energy, agriculture, and real estate, with full ownership of a tea brand that is publicly traded on Borsa Istanbul, indicating a strong market valuation within Turkey's tea sector.
