| Tue 28 Sep 2010, 8:30 | | FBR - Famous Brands Limited - Famous Brands Acquires Artisan Bakery Business |
|
FBR
FBR
FBR - Famous Brands Limited - Famous Brands Acquires Artisan Bakery Business
FAMOUS BRANDS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1969/004875/06)
Share code: FBR ISIN code: ZAE000053328
("Famous Brands")
PRESS INFORMATION
FAMOUS BRANDS SAVOURS
LOVE, BREAD AND COFFEE
WITH ACQUISITION OF VOVO TELO ARTISAN BAKERY
Johannesburg; Tuesday, 28 September 2010: Famous Brands has acquired a 51%
controlling interest in Vovo Telo artisan bakery and cafe, a young business
comprising three outlets, situated in Richmond Hill and Newton Park in Port
Elizabeth, and at 44 Stanley, in Johannesburg. The brand will be housed in the
Group`s `Theatre of Foods` division developed to accommodate privately owned non
mainstream food service businesses which the Group acquires in joint venture
arrangements. The acquisition consideration is not material and the transaction
is effective 1 October 2010.
Famous Brands` CEO, Kevin Hedderwick, is confident that the Vovo Telo brand
network can be expanded to 50 franchised bakery / restaurants within five years.
He says, "Vovo Telo is pioneering a new category in this country, which together
with the low cost of entry and unique offering, represents significant upside
potential for franchising. Famous Brands` model and the dynamic Vovo Telo
team`s passion will serve to unlock value for all stakeholders and assist us in
filling another gap in our franchise portfolio and growing brand repertoire."
He adds, "Vovo Telo is a perfect fit for the Group`s expanded strategic intent
to grow our best in class franchised leisure brands. In our view, Vovo Telo is
a best kept secret, which we are delighted to have discovered and look forward
to sharing. We are privileged to be partnering with founder Matthew Repton and
his partners Dave and Marisa Evans in achieving the full potential of the
brand."
"Vovo Telo`s young, entrepreneurial management team will be retained to run the
brand and develop it further whilst having full access to the Group`s business
model," says Hedderwick.
Repton started the business in 2006 in a restored settler cottage in Richmond
Hill, Port Elizabeth. He was inspired to develop the concept on a surfing trip
to Madagascar where he stayed in a small hotel called Vo Vo Telo. "Madagascar
has strong links to Europe but is still clearly African. Our bakeries are
similar in that way, European by tradition but African by nature. I started
with little more than an oven and a pair of hands. Those were hard times but
very rewarding, there was no signage so people would smell the aromas and would
follow their noses to find the bakery! After crafting the first few humble
loaves our customer base convinced me to serve coffee and a few sandwiches, it
was a natural progression from there," says Repton.
He adds, "Vovo Telo epitomises the theatre of baking. The bakery is centrally
positioned in each store so customers can watch the dough being shaped and the
bread being unloaded from the ovens. The proximity of the customer to the
crafting of the product reinforces the quality of the offering and the sensuous
nature of the experience."
"Vovo Telo`s core proposition is Love, Bread, Coffee. This maxim sums up our
love of great bread and coffee and the passion we have for service and our
customers - who in turn fall in love with our products and the experience. We
have a highly loyal customer base which continues to grow, and is welcome reward
for our efforts," comments Repton.
Hedderwick notes that there is a gap in the local market place for a pure
artisan bakery offering. He says, "At present baked goods in this country tend
to be mass produced, but increasingly people are seeking out artisan preparation
and wholesome quality, evidenced by the increase in fresh food markets. There
is a rich heritage in the USA, UK and Europe where strong franchise models built
on artisan baking thrive; South Africa is starting to adopt international
trends in terms of a renewed appreciation for artisan preparation and high
quality foods, and we are excited about pioneering this category together with
the current Vovo Telo team."
Vovo Telo prepares bread and pastries in the traditions of Italy and France.
There are no artificial ingredients or additives, just flour, water, salt and
some yeast. Each individual loaf is prepared from finest stone-ground flour, is
slow fermented, hand shaped and baked fresh daily. As a result, each loaf is
unique and distinctive. Repton says, "The skill of an artisan baker is
difficult to acquire and difficult to replicate and is an important source of
differentiation for the brand."
The business comprises two formats: the first being a take-home offering (bread
and pastry products), while the other format comprises an eat-in component
offering a limited menu centered on artisan food. "Inevitably, the eat-in
customer ends up taking away as well," notes Repton.
Light, healthy wholesome meals using fresh ingredients are prepared daily for
breakfast, lunch and in-between snacks. Expert baristas produce a range of
coffees featuring crema art.
Repton comments, "Our aim is to be the neighbourhood bakery where customers can
develop a relationship with their baker and not just buy bread, but also enjoy
an experience. We felt that in order to expand our concept we needed a ``big
brother`. Famous Brands provides us with the facilities and knowledge to
accelerate our expansion process, which enables us to concentrate on what we do
best - which is to produce great bread."
Hedderwick concludes, "Matt Repton`s genius in identifying the demand for
artisan bread and pastries and his quest for quality will enable us to grow this
category from start-up, with it potentially becoming an indispensable offering
on the epicurean menu. Whilst this acquisition represents a relatively small
investment for a Group of our size, the opportunity to change the food lover`s
landscape forever is tremendously exciting."
ends
Notes to editors:
The Group`s brand portfolio includes Steers (513), Wimpy including UK (651),
Debonairs Pizza (309), FishAways (108), Mugg & Bean (109), tashas (5), House of
Coffees (22), Brazilian Cafe (45), Blacksteer (13), Keg (28), McGinty`s (5) and
Giramundo (4). The Group also manufactures and supplies its franchisees and the
retail trade with a wide range of meat, sauce, bakery, ice cream, fruit juice
and mineral water products.
For further information:
Kevin Hedderwick Del-Maree English
Chief Executive Officer Investor Communications
Famous Brands Ltd Mobile: 083 395 8608
Telephone: 011 651 5812
Famous Brands` website: www.famousbrands.co.za
Date: 28/09/2010 08:30:01 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
