In December 2020, the Asia Food Growth Fund I announced that it had completed the acquisition of a controlling stake in Singapore’s Viz Branz Group.
Founded in 1988, Viz Branz is a well-known instant cereal and beverage company in China and Southeast Asia. Headquartered in Singapore, it has factories and sales offices in China and Myanmar and employs nearly 1,300 people. In the past 30 years, Viz Branz has operated more than ten well-known brands in China and Southeast Asia, including Gold Roast, Royal Myanmar Tea and Café 21.
Viz Branz generates approximately 70% of its revenue in China. As one of the first cereals to enter China, its Gold Roast Cereal has a significant composite cereal market share in southern China. As Chinese consumers have paid increasing attention to healthy diets in recent years, oats, which are considered a healthy food, have seen rapid growth in market share. Euromonitor data shows that the size of China’s breakfast cereal market is close to RMB 10 billion. In the post-pandemic era, consumers are paying more attention to healthy foods. The cereal market is expected to maintain a rapid growth of 8% per year.
Zhang Tianwei, the Chief Investment Officer of the CR Capital Management and Chairman of the Board of Directors of the Asia Food Growth Fund I, said, "This acquisition highlights the investment strategy of our fund, which focuses on growing business categories and leverages the resources and great experience of the fund shareholders in Asia to increase the value of the fund’s portfolio companies. We believe that CR Capital Management, Fung Capital and Investcorp will be ideal partners for Viz Branz’s continued growth in Asia."
Hazem Ben-Gacem, the Chairman of the Investment Committee of the Asia Food Growth Fund I and Co-CEO of Investcorp, said, "This acquisition is exciting. We have invested in a leading company in a sector that has tremendous growth potential. We think that Viz Branz is well-positioned for growth and will continue to expand in China and Southeast Asia through continuous product innovation and channel expansion. We believe this company will leverage its leading market position to build a large-scale branded and packaged food and beverage platform in China and Southeast Asia."
Mr. Ben Chng, CEO and founding-family shareholder of Viz Branz, will continue to hold an equity stake in the company after the acquisition is completed. He said, "Viz Branz has been making unremitting efforts to bring more nutritious and delicious foods to families. The joining of the Asia Food Growth Fund I is a key milestone in the company’s development and will bring us greater opportunities for future growth. Under the new partnership, Viz Branz will have greater resource and capability access that will help the company accelerate its business expansion and achieve long-term win-win results."
About the Asia Food Growth Fund I
The Asia Food Growth Fund I was established jointly between CR Capital Management, the Hong Kong-based Fung Capital and Investcorp, a world-renowned asset management firm. It focuses on well-known brands and high-quality companies with growth potential in food-related sectors.
