EU-Armenia SME Fund, managed by Amber Capital Armenia, invests USD 5.5 million in Alpha Food Service
· EU-Armenia SME Fund makes an equity investment in Alpha Food Service, a leading food and beverage supply and distribution company.
· The company is undergoing significant expansion to support its growing operations, streamline logistical capabilities and enhance service efficiency.
· The investment project adopts industry best practices, establishing a high standard of excellence in the sector and elevating the business to the next level.
EU-Armenia SME Fund has invested USD 5.5 million in Alpha Food Service CJSC. The investment proceeds will support the company’s expansion projects and assist the company in improving its environmental, social and corporate governance practices, while creating new employment opportunities in the country.
The bulk of the funding is designated for modernizing the company's warehousing and logistical capabilities. This echoes the strategic importance of enhancing logistic infrastructure in Armenia and is set to ensure higher operational standards and enhance service quality for its customers. It is anticipated that a new state-of-the-art warehouse shall be constructed, along with a fully equipped administrative building to support operational efficiency and scalability. The new facility is designed to accommodate advanced storage and logistics systems, temperature-controlled environments and optimized layout planning to handle diverse product lines effectively.
Established in 2005, Alpha Food Service CJSC and its subsidiaries are trusted partners for the HoReCa and catering sectors in Armenia, delivering a wide and consistently growing selection of quality products from renowned international producers. The business primarily focuses on the supply of bakery and confectionery products, along with a variety of food items, wines, and both alcoholic and non-alcoholic beverages.
Anushavan Simonyan, CEO of Amber Capital Armenia, highlighted the importance of storage and logistics infrastructure enhancement in Armenia. “We are glad to be part of an expansion that incorporates advanced facilities and technologies, particularly in a business that is a major supplier of food and beverages, contributing to the food security in our country. By collaborating with a reputable, quality-oriented business partner, we aspire to set a high standard for efficiency, safety and reliability in the food and beverage supply and distribution sector in Armenia.”
Aleksandr Petrosyan, founder of Alpha Food Service CJSC, said “We are truly inspired by this transaction, as it aligns perfectly with our planned level-up and helps us move closer to our ideal image. The construction of a new logistics center will elevate the company's role in Armenia's HoReCa and bakery sectors, enabling us to broaden our product range and provide services at a level we have always strived for but lacked the technical capacity to achieve. Without Amber Capital's involvement, this journey would have taken much longer.”
The EU -Armenia SME Fund, a private equity fund managed by Amber Capital, was launched in Armenia in January 2020 with investments from the European Union (EU), European Bank for Reconstruction and Development (EBRD), Amundi-ACBA Asset Management, the Hirair and Anna Hovnanian Foundation and the investment team of Amber Capital. It has since raised further capital from the Armenian National Interests Fund, C-Quadrat Ampega Asset Management Armenia, the Dutch Entrepreneurial Development Bank (FMO) and the Government of Armenia, as well as a number of Diaspora investors, with total committed capital of over USD 60 million. The Fund is committed to financing the sustainable growth of Armenian SMEs through capital investments and introduction of high standards of environmental, social and corporate governance practices. The transaction marks 13th investment by EU-Armenia SME Fund.