Orchestra PE Acquires "Mammoth Coffee"... Eyes Entry into Japan's Low-Cost Coffee Market

Private equity fund (PEF) manager Orchestra Private Equity (Orchestra PE) is set to acquire the low-cost coffee franchise "Mammoth Coffee."

Screenshot of Mammoth Coffee homepage.

On January 8, Orchestra PE announced, "Through 'Orchestra Private Equity VII, L.P. (OPE VII),' we have signed a share purchase agreement (SPA) to acquire 100% of the shares of Mammoth Coffee Lab, the operator of the budget coffee brand Mammoth Coffee, as well as Seojin Roasters, a coffee bean roasting company."

Mammoth Coffee Lab currently operates about 900 franchise locations nationwide, with annual sales of approximately 75 billion won. Seojin Roasters, which handles coffee bean roasting, records sales of around 14 billion won.

Mammoth Coffee is known for its efficient operating model centered on a kiosk-based ordering system and automated production processes. The company has expanded its customer touchpoints through digital channels such as mobile ordering and payment, and has established an in-house roasting system via Seojin Roasters, thereby securing cost competitiveness and stable coffee bean supply.

Orchestra PE plans to pursue a growth strategy in Korea focused on expanding franchise openings, enhancing operational sophistication, and strengthening the digital customer experience. In overseas markets, the company is considering a phased entry and expansion, particularly noting the structural gap in Japan's low-cost coffee market.

An Orchestra PE representative stated, "This acquisition of Mammoth Coffee was made through an overseas fund backed by global limited partners (LPs) from Europe, Australia, and Asia. KFC Korea, for which we recently signed an SPA for sale, is also a portfolio company of the same overseas fund. We continue to invest in and support the growth of leading domestic consumer goods companies by leveraging global capital."

The representative added, "Based on our accumulated operational experience in the food service and franchise sectors, we aim to enhance our execution capabilities for growth in Korea while also seeking realistic growth opportunities in the Japanese market."