Emerging market investor Actis is investing R760-million to acquire a substantial minority stake in pan-African food retailer Food Lover’s Market.

Food retail, the largest retail subsector in the South African economy, was valued at R471-billion, having grown historically by 9.5% a year, Actis highlighted in a statement on Friday.

The investment in Food Lover’s Market included funding to continue the company’s growth in South Africa and other countries within sub-Saharan Africa, and marks Actis’s fourth investment in the country in 18 months.

Actis was backing founders Brian Coppin and Mike Coppin, together with the existing management team, which had created a “remarkable success story based on a market leadership position in fresh produce retail”, with more than 120 Food Lover’s Market stores across 11 countries.

“Food Lover’s Market is one of the last few independent food retailers of scale on the African continent. It has a strong brand and a growing footprint across Africa and, in recent years, it has added categories such as bakery, grocery, butchery and deli foods to complement its market-leading position in fresh produce,” Actis added.

Food Lover’s Market CEO Brian Coppin noted that it was the firm’s experience of “working with family-owned businesses and its deep understanding of sub-Saharan Africa,” that drew the group to Actis, highlighting the firm’s proven record, having built 15 retail malls in seven countries. As such he believed Actis was a great business fit for Food Lover’s Market’s growth strategy in the future.

Actis director David Cooke said: “Brian and his team have carved a niche in the South African food retail landscape, offering a distinguished value proposition to aspirational consumers looking for high-quality products at real value. We look forward to working together to continue the group’s growth story and [further its expansion] within Africa.” 

Actis had backed food retail businesses in other emerging markets, including supermarket chain Companhia Sulamericana de Distribuição, in Brazil, and Nigiris, one of India’s best-known food retail brands.

The firm’s deal with Food Lover’s Market followed other local investments in home furnishings retailer Coricraft, independent sports shoe retailer Tekkie Town and credit bureau and information services business CSH.