SFBT Eyes Acquisition of Carthage Grains to Diversify into Agri-Food Sector
As part of its diversification and growth strategy in the agri-food sector, the Board of Directors of the Tunisian Beverage Manufacturing Company (SFBT) has mandated its General Management to engage in negotiations for the potential acquisition of up to 100% of Carthage Grains' capital. Carthage Grains, a subsidiary of the Mokhtar Group, has specialized in the local transformation of oilseeds into vegetable oils and proteins since 2008, capitalizing on the strong demand in the local market.
Meeting Tunisia's Growing Demand for Vegetable Oils
Tunisia's demand for vegetable oils exceeds 250,000 tons per year, with only 15% of this demand being met by national production. Carthage Grains has a production capacity of 500,000 tons per year, satisfying a significant portion of the country's soybean oil needs, the most consumed oil in Tunisia. Additionally, the crushing process yields a valuable by-product, oilcake, which is highly prized in animal feed for its protein content.
Promoting Local Colza Production
In 2014, Carthage Grains launched a Tunisian colza production line in partnership with the Ministry of Agriculture, Fisheries, and Hydraulic Resources. This initiative encourages local production of this crop, which offers both agronomic and economic benefits. In 2021, 15,000 hectares of colza were produced in Tunisia.
The Strategic Value of Carthage Grains for SFBT
What would be the benefits of acquiring such a company for SFBT? It is clear that the company has reached a certain level of maturity, and achieving double-digit growth without increasing beer and beverage prices is a challenging task. However, SFBT is financially capable of pursuing external growth opportunities. The strength of its distribution network would enable it to easily increase Carthage Grains' current market share. If successful, this acquisition would be one of the most significant in Tunisia's industrial sector.
