RFG Annual Report 2007 - Retail Food Group

06/07
Annual Report
6
Retail Food Group Annual Report
BRUMBY’S BAKERIES
In September 2007 Retail Food Group completed the off market takeover of Brumby’s Bakery Holdings Limited, the
franchisor and intellectual property rights owner of the Brumby’s franchise system, adding 321 outlets and an iconic
Australian brand to the Group.
The acquisition of Brumby’s constitutes the realisation of one of the pivotal strategic growth initiatives detailed in the Company’s May 2006
Prospectus and represents an excellent complementary acquisition that has signifi cant scale, is well developed and is of suffi cient maturity to
provide immediate and ongoing positive earnings to RFG.
The integration of Brumby’s personnel, systems and procedures is well advanced and fi rst quarter results very positive. It is also encouraging to
note the unqualifi ed support and endorsement provided to RFG by Brumby’s franchisees during the annual Brumby’s Conference held in Sydney
during late August 2007.
In terms of the 2008 fi nancial year, Brumby’s system growth is underpinned by forecast new store growth of 21 Brumby’s outlets and increased
average weekly sales.
MICHEL’S PATISSERIE
In September 2007, Retail Food Group advised the market of its intention to acquire all the issued shares in The
Michel’s Patisserie Group Australia Pty Ltd, the franchisor and intellectual property rights owner of the Michel’s
Patisserie franchise system.
Michel’s is also an iconic Australian franchised brand and specialises in the retail sale of cake, coffee and patisserie related products.
The proposed addition of over 340 Michel’s franchised outlets will make RFG, with in excess of 1035 outlets (as at the 10 October 2007), one
of the largest retail food franchisors in Australia and the largest by a considerable margin with respect to ‘home grown’ retail food franchise
concepts.
As was the case with RFG’s takeover of Brumby’s, the Michel’s acquisition will provide RFG with an additional experienced, robust and skilled
management team which considerably embellishes the Company’s existing human resource compliment—both in terms of franchisee support
divisions and management expertise.