Gloria Jeans is headed to China.
Retail Food Group has partnered with a Chinese company to establish a joint venture.
RFG has signed a joint venture with Tian Jin Sen Yong Tai (TJSYT) to take the Gloria Jean’s Coffees and It’s A Grind Brand System to China.
TJSYT already operates two Gloria Jean’s Coffee outlets in China and its parent, China-based GouBuLi Group, has a 150 year old heritage with an annual revenue of RMB1billion (A$197 million). The GouBuLi Group operates more than 30 high end restaurants across China and is also involved in the food processing, logistics and training industries.
Under the agreement RFG will hold a 20 per cent interest in the joint venture with the remaining 80 per cent to be owned by TJSYT.
The agreement gives TJSYT an exclusive, perpetual and royalty free licence for Gloria Jean’s Coffees and It’s A Grind Brand System in China.
FRG CEO, Tony Alford, said the initial fee of $6 million had been received in full.
“The joint venture represents the culmination of a 12 month engagement between the Gloria Jean’s Coffees Brand System, Tian Jin Sen Yong Tai and their respective associates, and affords RFG immediate revenues in terms of the initial licence fee paid, together with scope for future earnings by way of profit share and supply side opportunity,” Alford said.
“Importantly, the joint venture unites RFG with a substantial and motivated local partner, well able to apply sufficient resources, retailing expertise and resolve to ensure the success of the enterprise.”
GouBuLi was established over 150 years ago as a small stuffed-bun shop in Tianjin, outside of Beijing and has grown to become one of the larger catering brands on the Chinese mainland. The company operates more than 30 high-end restaurants across the country and is also involved in food-processing, logistics and training. GouBuLi Group chairman Yan Sen Zhang also has interests in the Chinese Pharmaceutical industry, where he is the controlling shareholder of both TianJin Tong Ren Tang and Tian Jin Hong Ren Tang, brands with more than 200 years heritage.
