Japan's Ezaki Glico buys chocolate company from US GP

Financial details have not been disclosed. Emil initially invested during a Series B round for the company in 2013, reportedly acquiring $5.7 million worth of shares. Value-add measures during the holding period included marketing and product development support as well as improvements to customer service.

Founded in 2005 and based in San Francisco, TCHO specializes in a bean-to-bar chocolate production processes that stress high standards for quality and raw material procurement, including direct partnerships with cacao growers in Latin American and Africa. Products are characterized by colorful package designs and a wide range of gourmet flavors. 

"TCHO has a unique approach to sourcing, flavor and packaging – we work with farmers and cooperatives to help them produce better cocoa which is designed to benefit them and helps us make exceptionally delicious chocolate," Marcel Bens, CEO at TCHO, said in a statement. "Ezaki Glico is a company that understands, appreciates and will continue to support that business model."

Ezaki Glico operates 19 plants in nine countries and produces household brands including pretzel stick varieties Pocky and Pretz. It generated consolidated sales of JPY353.2 billion ($3.3 billion) in 2016, up marginally on the prior year. This reflected decreased business in the dairy division – which includes yogurt but not chocolate – and an improved performance in food products such as ice cream.

The annual value of the US chocolate market has grown from $14.2 billion in 2007 to $18.9 billion in 2017, according to Euromonitor International. The TCHO transaction is said to be well timed for benefiting from this momentum because the company focuses on the kinds of sophisticated, carefully marketed products that are driving the growth trend.

Emil is the holding company for the US venture activities of consumer goods distribution company Tengelmann Group. It invests across sectors including food and beverage, beauty and apparel, and digital media. Portfolio companies include ride-hailing giant Uber.

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• Topics
• North Asia
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• Exits
• Trade sale
• Consumer
• Japan
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