Salim Group, Indonesia’s biggest conglomerate, hopes to enter the South Korean coffee market by supplying the country with Indonesian coffee in the future, following its investment in Korean coffee shop chain Caffè Bene.
Salim Group, with Singapore’s Food Empire Ltd, formed joint venture Hallyu Ventures and purchased 38 percent shares in Caffè Bene worth US$13 million in March. However, the group does not have plans to bring the coffee shop franchise to Indonesia.
“We acquired the shares because there is potential in the coffee business [in South Korea], and Indonesia is a big coffee producer. We can supply the chain with coffee in the future,” the group’s chairman, Anthony Salim, told thejakartapost.com on Friday.
The group, however, does not own a coffee plantation. “No. No coffee plantation business yet. We want to concentrate on tea first. If the coffee chain business is good, we might consider buying a plantation,” he said.
Caffè Bene welcomed new investment on account of weakening business. It recorded a net loss of $7.1 million in 2014, which grew larger to $30 million in 2015.
The coffee shop chain has also carried out restructuring, with founder Kim Sun-Kwon stepping down from his position as CEO and selling most of his shares.
