Oliver's Real Food inks food to go deal with EG Group
EG is expected to open at least 100 to-go outlets within 12 months.
Oliver’s Real Food has entered into a long-term agreement and intellectual property licence with EG Group, making them the exclusive supplier of its branded food to go offering.
According to an announcement posted in the ASX, the British fuel and convenience conglomerate will pay the chain an upfront once off licence fee of $500,000 in exchange for being able to sell Oliver’s to-go products in EG’s petrol and convenience outlets.
The supply agreement runs for an initial term of ten years with an option for the parties to agree to extend it for another ten years.
EG is slated to open a minimum 100 Oliver’s Food To Go outlets within 12 months of the date of the deed as part of minimum performance requirements.
“EG recognised in Oliver’s a brand with significant credibility in this market, and we have found in EG a fantastic partner to expand the Oliver’s brand rapidly, on a national scale. We have enjoyed working with the team at EG over the last nine months, and we look forward to developing the relationship in the years to come,” Jason Gunn, Oliver’s founder and chairman said.
The partnership was made in lieu of an earlier offer by EG to buy Oliver's Real Food for $25 million.