Nestlé Brasil enters into an agreement for the purchase of the CRM Group, Owner of Kopenhagen

São Paulo, September 06, 2023 – Today, Nestlé Brasil has entered into an agreement for the purchase of the CRM Group, owner of Kopenhagen and Brasil Cacau businesses. Under the structure of the transaction, Nestlé acquires the entire stake of FIP Dutch, whose quotaholders are funds managed by Advent International, in the CRM Group. The transaction is subject to the approval of the Administrative Council for Economic Defense (CADE) and will be submitted to the antitrust agency in the coming weeks. The transaction is expected to be closed in 2024. The financial details of the transaction will not be disclosed.

Renata Moraes Vichi, who has been with the company for 25 years, will continue to lead the Group’s operations as CEO and shareholder. Currently, the CRM Group has over 1,000 stores and is one of the major franchisors in Brazil. Nestlé’s controlling interest will allow it to participate in a differentiated segment, adding to its framework a new business model with its network of stores that offer an exclusive experience to consumers by matching high quality chocolate to coffee. Concurrently, Nestlé will be committed to further leveraging CRM Group’s growth.

“Renata’s continuance as CEO is considered fundamental for the success of the transaction, considering her deep knowledge of the business, the results and the passion with which she has led the company over the last 25 years, culminating in a consistent development path”, states Marcelo Melchior, CEO of Nestle Brazil. “We find that we have a great opportunity to accelerate higher value-added segments, further strengthening the Chocolate category in Brazil.”

A centenary brand, Kopenhagen’s history began in 1928 and has evolved throughout decades always distinguished by innovation. Classics such as Língua de Gato, Nhá Benta, Lajotinha, Chumbinho and Cherry Brand are household products to Brazilians: with over 600 stores, Kopenhagen is present in every Brazilian state. On the other hand, the Brasil Cacau stores have been on the market since 2009 and were created with the mission of democratizing quality chocolate in the country. Today, it has over 400 units throughout Brazil.

In 2020, the funds managed by Advent purchased the CRM Group’s control with the objective of supporting the company’s growth. In three years, the private equity firm boosted the opening of new stores, fulfilling the Group’s expansion plans. Advent also added its retail knowledge and technology aimed at accelerating the network’s digital transformation.

“I’ve been at the head of the Kopenhagen and Brasil Cacau brands for over two decades and, since I took my first position in the Group, my management was always aimed at perpetuating our brands and, therefore, all the strategies and innovations are undertaken with this purpose in mind. I’m proud of everything we’ve built jointly with our more than 590 franchisees and 2,000 employees. We come from a family group that has always been characterized by robust governance and a strong and driving culture, where preserving the territories of each brand and its evolvement has always been a priority. With non-negotiable values, we have grown and established ourselves as one of the largest franchising groups in the country. Together with Advent, we have achieved in three years what was had expected in five, and now we are entering into this partnership with Nestlé certain that we still have a long way to go to achieve our big dream. I’m sure that today we have taken a giant step towards this future that, as a group, we build every single day”, celebrates Renata Vichi, CEO of the CRM Group.

“Partnering with entrepreneurs and management teams is at the heart of Advent’s value creation strategy, and we are very happy with what we have achieved alongside Renata and her team at the CRM Group”, says Wilson Rosa, an Advent partner co-responsible for investments in retail and consumer companies in Latin America. Since 1997, Advent has invested in 24 companies in both sectors in the region. “Under Advent’s control, the CRM group saw marked revenue growth, enhanced its standing as the leader in the premium chocolates segment and became one of the main companies in the thriving Brazilian franchise market.”

The relationship to be established between Nestlé and the CRM Group will capture opportunities in different avenues for growth focusing on innovation, digitalization, exploitation of new categories and channels, in addition to enabling the expansion of sustainable initiatives relevant to the chocolate business.

About Nestlé

Nestlé has operated in Brazil for over 100 years and continues to renew its commitment to society, as a mobilizing force that contributes to bringing nutrition and wellness to billions of people and creating an environment of inclusion and opportunity for thousands of Brazilians, while being the most sustainable food producer in the country. The company employs over 30,000 people in Brazil and has 20 industrial units located in the states of São Paulo, Minas Gerais, Bahia, Pernambuco, Goiás, Rio de Janeiro, Rio Grande do Sul and Espírito Santo, as well as nine distribution centers and more than 50 brokers (responsible for sales, promotions, merchandising, warehousing and distribution). Committed to good practices from field to fork, the company has thousands of producers participating in quality programs in the cocoa, coffee, milk and vegetable chains, which insure sustainable production and bring innovation to the field. In addition, Nestlé develops initiatives in its facilities, such as minimizing water and energy consumption and reducing emissions, reforestation actions, and continuous innovation in increasingly sustainable packaging. Nestlé Brazil is present in 99% of Brazilian households according to a research by Kantar Worldpanel.

About CRM Group

Owner of the Kopenhagen, Brasil Cacau and Kop Koffee brands, it is currently one of the largest franchising groups in the country with more than 1,000 stores spread across all Brazilian states, employing more than 2,000 people and having 590 franchisees. With one of the most modern and well-equipped factories in the country, located in Extrema/MG, the Group has been a pioneer in the premium chocolate segment in Brazil, always indicated as a reference in product innovation and quality. Owner of classics such as: Nhá Benta, Língua de Gato, Cherry Brand and Lajotinha, the Kopenhagen brand has delighted and surprised its consumers for 95 years, crossing generations as a leading player in the gift sector. Brasil Cacau, with a lot of personality and attitude, was born in 2009 with the responsibility of democratizing quality chocolate in the country, a mission that has been carried out diligently, and today the brand is among the most beloved in Brazil. Kop Koffee, the youngest of the group, was born in 2019 to turn the coffee and chocolate match into a great opportunity to conquer new territories and new consumers.

About Advent International

Founded in 1984, Advent International is one of the largest and most experienced global private equity investors. The firm has invested in over 405 private equity investments across 42 countries, and as of December 31, 2022, had $92 billion in assets under management. With 15 offices in 12 countries, Advent has established a globally integrated team of over 290 private equity investment professionals across North America, Europe, Latin America and Asia. The firm focuses on investments in five core sectors, including business and financial services; health care; industrial; retail, consumer and leisure; and technology. For over 35 years, Advent has been dedicated to international investing and remains committed to partnering with management teams to deliver sustained revenue and earnings growth for its portfolio companies.

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