Actis, a private equity firm focusing on investments in global emerging markets, has invested R760 million (US$54 million) in South African fruit and vegetable retailer, Food Lover’s Market, acquiring a large minority stake in the business, according to Reuters.

 

Launched in 1993 under the original name, Fruit and Veg City by brothers Brian and Mike Copin, Food Lover’s Market is one of the few remaining independent food markets on the African market with potential for scale. The business has grown to more than 120 outlets across 11 African countries according to IOL Business, and has been expanding its business to include bakery, grocery, butchery, and deli foods. Food Lovers also operates more than 200 FreshStop convenience stores located in Caltex service stations, Market Liquors locations, an import-export business, and has recently purchased the coffee brand, Seattle Coffee.

 

According to Actis, food is the largest retail sub-sector in South Africa, with yearly growth topping 9.5%, and reaching a value of $35 billion, reports IOL Business. This industry, however, has faced challenges recently, as the country’s worst drought in two decades has pushed the country to import staples. This, in turn, has resulted in higher food prices. Despite this, the potential for vast growth within the sector remains evident.

 

This investment in Food Lover’s Market is not Actis’ first investment in the global food space. The firm, which has $7.6 billion in funds under management, has made investments in other emerging markets including in Nigiris, one of India’s top retail food brands, and Companhia Sulamericana de Distribuição, a supermarket chain in Brazil.

 

In addition, Actis has announced through a company press release, the formal opening of its new permanent office in New York. This newest addition will bring the firm’s number of global offices to thirteen, and the number of its offices in the Americas to three. With a growing portfolio of investments across Africa, Asia, and Latin America, the newest office will help Actis strengthen its presence throughout the Americas as it plans its future growth.