By May Kunmakara On June 19, 2019
Tanncam Investment acquired a 65 percent stake in Vibe Cafe Hospitality, a leading health food restaurant and wholesale distributor in Cambodia.
The deal includes the Vibe Cafe vegan restaurants – one in Phnom Penh and one in Siem Reap – and Backyard Café, a health food outlet in Phnom Penh.
As part of the agreement, Tanncam will inject additional capital to accelerate the franchising opportunity.
In addition to vegan and health food cuisine restaurants, Vibe Cafe Hospitality is a wholesale distributor of its proprietary products, a leading provider of rejuvenating cleansers and lunchboxes, and an innovator in unique health food and vegan recipes, available in the founder’s cookbook through Amazon.
The group has recently entered into the franchising and restaurant consulting business, according to the company’s announcement released on Monday.
Emma Fountain, founder of the group, will retain 31 percent ownership and remain CEO.
Ms Fountain said that “the global health food industry is booming as people are adopting healthy eating habits, not only for body and mind wellness, weight control, and for a better nutritional diet, but to live longer and to avoid chronic diseases such as diabetes and cancer.
“We have incubated and developed an incredibly successful health food business in Cambodia with attractive payback periods, loyal customers, and robust financial returns. With Tanncam’s support we have a fantastic opportunity to expand the model globally through franchising,” commented Ms Fountain.
Cambodian Investment Management was the sole arranger and financial adviser on the transaction which closed on June 9.
Anthony Galliano, Cambodian Investment Management CEO, said that the health and vegan food is no longer a niche market segment but a trillion-dollar industry and a movement that is just getting started, growing rapidly, and gaining extensive acceptance.
“The group will distribute its healthy foods through retail supermarket channels and expand its restaurant outlets globally, capitalising on this trend,” he added.
In March last year, Tanncam invested $4 million into Verita Healthcare Group, a global provider of healthcare services and products based in Singapore. In 2017, the company invested $10 million into Netmeds, India’s leading online pharmacy.