AB Akola Group invests in a promising Lithuanian beverage startup

    AB Akola Group invests in a promising Lithuanian beverage startup

On 14 March, AB Akola Group signed an agreement with OMG Bubble Tea, UAB, a fast-growing popular beverage startup, for an investment of EUR 1.9 million. AB Akola Group will acquire a minority stake in the startup and a seat on its board.

Founded in 2022, OMG Bubble Tea, UAB is a fast-growing producer of natural bubble tea, exporting around 95% of its production to France, Germany, Great Britain, Austria, and other countries. The company has 143 employees and a production unit in Panevėžys.

"OMG Bubble Tea is a growing startup that has increased production and revenue several times over the year. The management and the team are energetic, the production processes are being fine-tuned, and the sales progress has been made for further successful expansion. In 2024 and 2025, exponential growth is foreseen for the startup – measuring in times, not in percentage. The global bubble tea market size was valued at 3 billion US dollars in 2022 and is projected by experts to grow by 6.3% annually until 2032, while the European market will grow by 8% annually. Therefore, the startup's outlook is promising," says Mažvydas Šileika, Chief Financial Officer of AB Akola Group.

He said the investment will allow the startup to expand at an even faster pace, while the AB Akola Group's seat on the company's board will strengthen its governance.

"I plan to sit on the company's board, so we will spot first-hand how ambitious plans are being implemented. We believe this is a worthwhile investment for us, as the consumption of beverages is growing globally, especially among young people, and the prospects in this area are great. Our business strategy is to increase the weight of food products in the group's overall business, thereby increasing the group's overall profitability and value. We are not only investing in increasing production capacity but also looking for small, growing producers. This is by no means our last investment in beverage startups," says Šileika.

According to Jonas Karosas, Director of OMG Bubble Tea, UAB, the company built a solid team, secured the supply of raw materials and good position in certain retail chains abroad.

"Our product is aimed at children and young people, and it evokes good emotions. Global trends show increased demand, and we want to take advantage of this and expand our volumes. The kick-off, as in any production, was not easy, but we have still grown at a very fast pace since we started the company. The Akola Group’s investment will allow us to increase this pace even further," says J. Karosas.

This is the second investment in startups by AB Akola Group. A few years ago, the group invested in Geoface, a startup that developed a smart farming app, and later acquired a full stake in it.

About AB Akola Group

AB Akola Group owns the largest agricultural and food production group in the Baltics, employing 4.9 thousand people. The group operates along the entire food production chain from farm to fork, producing, preparing and marketing agricultural and food products, and supplying goods and services to farmers. The group's financial year starts in July and its revenue for the last financial year was almost 2 billion euro. The group is currently building an instant food plant in Alytus, a breadcrumb factory in Kėdainiai, a biogas plant in Šakiai district in Lithuania, and a certified seed factory in Latvia.

More information:

Mažvydas Šileika, Chief Financial Officer, AB Akola Group
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