RFG to buy La Porchetta and Cafe2U

posted on 29th August 2014

Australian listed company Retail Food Group has announced it is to buy the mobile coffee franchise Cafe2U and Italian-themed casual dining franchise La Porchetta. RFG already owns nine other franchise brands, including The Coffee Guy, Brumby's Bakery and bb's Cafe.

'Established in Sydney in 2000, Cafe2U is the world’s largest mobile coffee franchise concept comprising
approximately 236 franchised units operating in Australia (157 units), New Zealand (11 units), Great Britain
(62 units), the USA (5 units) and South Africa (1 unit).

The acquisition complements RFG’s November 2012 acquisition of The Coffee Guy Brand System,
positioning the Company as clear market leader within the mobile coffee segment in Australia and New
Zealand with a combined population of 175 units and 66 units respectively.

[RFG CEO Tony Alford] noted that the transaction consolidates another impressive retail coffee system under the
Company’s umbrella, delivering further strategic benefits which include immediate scale in the Australian
market, manufacturing and coffee roasting synergies, and expanded penetration in key offshore markets.

“The transaction validates the position expressed to the market in 2012 that mobile coffee represents an industry segment ripe for consolidation, and possessing of genuine opportunity for international exploitation."

“Whilst RFG’s intention is to retain and develop the individual identities of both the Cafe2U and The Coffee
Guy Brand Systems, the acquisition generates significant synergistic opportunities. These include realisation
of the enhanced roasting capacity afforded by the Company’s recently established Yatala roasting facility,
potential for collaboration across a range of areas including marketing, research and development, and
other direct benefits that will enable accelerated growth of RFG’s coffee business,” he said.'

Read more at http://rfg.com.au/images/in...

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