Procafecol Secures Financing from responsAbility to Drive Expansion and Sustainability Initiatives

Bogotá/Zurich, 29 August 2024 - Procafecol, the company operating the widely known Juan Valdez coffee brand, has secured a long-term sustainable loan from a responsAbility-managed fund through the climate-smart agriculture and food systems strategy. This financing is strategically aimed at enhancing the capital structure and supporting the ambitious expansion plans of the company, while reinforcing its deep commitment to sustainable practices and the prosperity of Colombian coffee growers.

The financing provided by responsAbility is a pivotal step in enhancing Procafecol’s financial stability and enabling the company to expand its operations both domestically and internationally. Withapproximately 600 stores around the world, the company is on a growth trajectory that reflects its increasing global presence and the strength of the Colombian coffee brand. The loan will help Procafecol manage its capital more effectively, ensuring that it can continue to open new stores and enter new markets, all while maintaining its high standards of corporate governance and sustainability.

Advancing sustainable coffee production and social impact

As a B-Corp and one main product Rainforest Alliance certified, Procafecol is dedicated to achieving net zero emissions by 2050. The loan from responsAbility will enable Procafecol to advance its sustainability initiatives, including its participation in the Coffee, Forest, and Climate Voluntary Agreement, which promotes deforestation-free coffee production, provides incentives to small producers, and manages the carbon footprint in coffee production. Additionally, the company is committed to empowering young and female growers through its robust social mission.

As part of the supply chain decarbonization effort, the company is set to increase the procurement of certified coffee and to assist small holder farmers in improving agricultural practices. This shift will not only enhance the environmental sustainability of operations but also benefit coffee farmers in Colombia who are integral to the company’s supply chain.

Providing access to sustainable long-term financing

Pedro García, Vice President of Strategy and Finance at Procafecol, said: “We are very satisfied with this transaction as it reflects the trust that a leading impact investor like responsAbility has in us. It also reaffirms our strength as an organization and underscores the importance of sustainability in our business model, given that this credit is associated with environmental, social, and governance factors.”

Suhasini Singh, Head of Sustainable Food Debt at responsAbility, said: “We are delighted to partner with Procafecol, a flagship Colombian company, which has a profound impact on Colombian coffee growers. We look forward to supporting the company´s mission and growth strategy and to developing targeted technical assistance projects to further enhance the company’s positive environmental and social impact.”

Driving global food system transformation through strategic investment

This investment in Procafecol marks the first investment in Latin America under responsAbility’s climate-smart agriculture and food systems strategy, which was launched in February 2022 and had its first closing in June 2023. The strategy was designed to address the critical need for transformation within global food systems, which are currently responsible for roughly one third of greenhouse gas emissions, as well as are one of the main causes of biodiversity loss and nearly 80% of global deforestation.

Given that global food demand is projected to rise by nearly 20% by 2050 due to population growth, there is an urgent need to transition to more sustainable agricultural practices. The strategy aims to provide long-term expansion debt to innovative businesses operating in the food value chain across Asia Pacific, Latin America, and Africa, with the goals of mitigating climate change, reducing food loss, and promoting climate change resilience among smallholder farmers.

About Juan Valdez® Juan Valdez® is the only coffee brand of international relevance that belongs to coffee growers. In 2002, the National Federation of Coffee Growers of Colombia, a non-profit organization that represents more than 548,000 coffee growing families, created the Juan Valdez® project for coffee shops and value-added businesses, named after the icon, that for more than 50 years has represented Colombian coffee in the world.

In 2021, it was certified as a B Company and was able to join the select group of more than 5,000 companies that not only aspire to be the best in the world, but also the best for the world. Juan Valdez® coffees are synonymous with high quality, providing coffee growers with greater value for the quality of the coffee and important royalty resources for the sale of each cup or product that carries the Juan Valdez® brand around the world.