By Brazil Stock Guide – Grupo 3corações agreed to acquire the Yoki and Kitano brands for about 800 million reais ($160 million), marking a significant step in its strategy to diversify beyond its core coffee business in Brazil.
The transaction, still subject to regulatory approval and customary closing conditions, is expected to strengthen the company’s position in the broader food market by adding established brands in categories such as snacks and seasonings.
“This is a fundamental step in our purpose of getting closer to Brazilian families, being present in different consumption occasions,” said Pedro Lima, chief executive officer of Grupo 3corações.
The deal was advised financially by Deutsche Bank, while Miguel Neto Advogados provided legal counsel.
Founded in 1959, Grupo 3corações is Brazil’s leading coffee company, with a portfolio spanning roasted and ground coffee, capsules, cappuccino, instant products and ready-to-drink beverages. The company is a joint venture between Brazil’s São Miguel and Strauss Coffee BV, a unit of Israel’s Strauss Group Ltd. (STRS).
The group manages more than 30 brands, including 3 Corações, Santa Clara, Pimpinela, Café Brasileiro and Iguaçu, and has distribution across more than 600,000 points of sale nationwide.
In recent years, the company has expanded into adjacent food categories such as powdered drinks, chocolate beverages and corn-based products. The addition of Yoki and Kitano reinforces its diversification strategy and broadens its reach in Brazil’s consumer staples sector.