Future freeze-dried instant coffee plant - a joint venture between LDC and Instanta. Construction to begin in the first half of 2022. — Photo courtesy of the firm

Louis Dreyfus Company Asia Pte Ltd (LDC) announced on Tuesday that the company has signed a joint venture (JV) agreement with Instanta Sp. z o.o. (Instanta), a global private label coffee company, to build and operate a freeze-dried instant coffee plant in the southern province of Binh Duong.

“This venture complements LDC’s strong existing Vietnamese footprint and global Robusta green coffee business, enlarging our coffee product offering to customers to address growing instant coffee demand and premiumisation,” said Julien Terrisse, LDC’s Head of Instant Coffee.

The transaction represents another positive step in LDC’s strategy to pursue greater vertical integration and diversify revenue through value-added products.

“Working with partners with complementary expertise and capabilities, and a shared commitment to sustainable production, is central to our strategy, as we evolve to embrace more of the value chain and meet our customers’ needs,” said Thomas Couteaudier, LDC’s Chief Strategy Officer.

The JV will operate under the name ILD Coffee Vietnam, and the start of construction is expected in the first half of 2022.

Louis Dreyfus Company is a leading merchant and processor of agricultural goods. Their activities span the entire value chain from farm to fork, across a broad range of business lines. Since 1851, their portfolio has grown to include grains and oilseeds, coffee, cotton, juice, rice, sugar, freight and global markets. — VNS