RFG partners up with JV Partner for China expansion
To expand the Gloria Jean’s Coffees and It’s A Grind Brand Systems within the China market.
According to RFG, the JV Partner is already successfully operating two Gloria Jean’s Coffees outlets within the country, and its parent, GouBuLi Group Co Ltd, has been successfully operating a restaurant chain in China under the GouBuLi Brand, which has over a 150 year old heritage and annual revenues of $197 million.
RFG CEO Tony Alford noted that the initial license fee of AUD$6m had been received in full, and that the parties were in the process of implementing the terms of the joint venture.
“The joint venture represents the culmination of a twelve month engagement between the Gloria Jean’s Coffees Brand System, Tian Jin Sen Yong Tai Co Limited and their respective associates, and affords RFG immediate revenue in terms of the initial licence fee paid, together with scope for future earnings by way of profit share and supply-side opportunity”.
“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”, he said.
