Johannesburg; Thursday, 18 April 2013: Famous Brands has announced the acquisition of a 51% controlling stake in the much-loved and multi-awarded bakery and delicatessen brand, The Bread Basket, thereby furthering the Group’s goal to build manufacturing capability at the back end of its business. The acquisition consideration is not material and will be funded from cash reserves.
The Bread Basket was established in 1982 by husband and wife team, Adonis and Christina Avraamides. In the late 1990s an in-house coffee shop Café offering was incorporated, providing light meals in a sit-down environment to supplement the quick-service take-away component. Today the business comprises six retail outlets, three of which are family-owned and three franchised; son and daughter Panos and Maria have managerial responsibility for the business. The retail outlets are all situated in high profile shopping malls in Johannesburg, namely Eastgate, Sandton City, The Glen, Morningside and Greenstone, and in Pretoria, namely Parkview.
Significantly, the business also comprises a bespoke manufacturing facility which supplies the six bakeries with croissants, pastries, confectionery and deli products.
Famous Brands Chief Executive, Kevin Hedderwick says, “Key to the rationale underpinning this acquisition is the substantial supply chain opportunity which this investment affords. This transaction aligns with our deliberate strategy to build manufacturing capability at the back end of our business – in this case, specialist breads, pastries and confectionery, which most of our existing brand portfolio and franchised network currently procure from external third-party suppliers.”
“This acquisition provides the Group with access to manufacturing assets as well as the technical skills and experience of Panos and Maria and their team – all of which we will be retaining,” he notes.
The extent of this expertise is illustrated by the fact that the business currently manufactures around 200 line items for their existing retail outlets.
Hedderwick elaborates, “We are not acquiring this business for its short term franchising potential. Rather, from the outset, we will provide to the existing franchise partners the full Famous Brands franchising system, with a view to developing an alternative take-home offering based on a much smaller and less complex trading format in due course. Our immediate overriding ambition for this joint venture is to optimise the existing manufacturing capability.”
Adonis Avraamides says, “From inception, The Bread Basket has prided itself on using pure, preservative-free ingredients and producing recipes which are developed from ‘scratch’. Fresh products are baked daily hence our slogan: ‘Pure food. Pure pleasure.’ We believe it is this commitment to good pure bakery skills and our extensive specialist expertise that appealed to Famous Brands. We are delighted to be partnering with them in this venture.”
Hedderwick concludes, “We are privileged to be retaining managerial involvement of the founding family. I am confident that both parties will benefit from the obvious synergies which this joint venture affords and we look forward to growing this business to achieve its full potential.”
For further information:
Chief Executive Officer
Famous Brands Ltd
Telephone: 011 651 5812
Mobile: 083 395 8608