RFG BENEFITS FROM A ROASTING

Written on the 30 June 2015 by Jenna Rathbone

RFG BENEFITS FROM A ROASTING

EIGHT months after snaring the Gloria Jean's Coffees business, Retail Food Group (ASX:RFG) has stepped up the pace of offshore expansion driven by what it says is a growing coffee culture in the developing world.

RFG says it has opened 16 new Gloria Jean's Coffees outlets outside of Australia over the past two months, aided by a reorganisation and expansion of operations which included the establishment of a dedicated international division.

RFG's CEO of franchise Andre Nell says the openings reflect growing interest in coffee in developing countries.

"Australia's coffee market is reasonably mature, with coffee consumers quite sophisticated and the café sector highly competitive," says Nell.

"In regions like Asia, espresso coffee culture is growing rapidly in popularity as consumers adjust their palates, acquire new tastes and learn more about the processes, flavours and blends available through espresso-style coffee.

"Coffee consumption trends are actually quite varied across different countries. For example, customers in China drink coffee well into the night rather than the morning-focused trade we see here in Australia."

Nell says this is just the beginning and more Gloria Jean's stores are in the pipeline with RFG's eyes set on high growth regions including China, Malaysia and Turkey.

"Turkey recently surpassed 40 outlets, opening six new stores in the past two months, and RFG's joint-venture partner in China is forecasting a minimum of 25 new store openings in the next 12 months," says Nell.

"RFG's traditional brands are also gearing up for expansion with increased interest from international partners since the establishment of a dedicated internal international division."

The international division aims to realise significant international growth opportunities arising from strategic acquisitions and along with Gloria Jean's, includes the expansion of Di Bella Coffee domestically and in international markets.

RFG currently operates coffee roasting facilities in Australia, New Zealand and the US, and blends around 5.9 million kilograms of coffee each year.


Author: Jenna Rathbone
About: Jenna Rathbone is a Queensland-based journalist who writes on a range of issues including business and property affairs and social issues.
Connect via: Twitter

Latest News

SLATER & GORDON AND MAURICE BLACKBURN SHOWDOWN IN BELLAMY'S CLASS ACTION

FIERCE rivals Slater & Gordon (ASX: SGH) and Maurice Blackburn have secured funding for class actions against Bel...

WHY VIDEO IS A "GIVEN" FOR BUSINESS

IN TODAY's digital-driven world, video is king and if used right, it can push a company's brand and brand ...

BRAMBLES TUMBLES AFTER REDUCING GUIDANCE

BRAMBLES (ASX: BXB) will miss its first-half guidance due to cost pressures at its North America business.

The com...

VILLAGE ROADSHOW PARKS HURT BY DREAMWORLD TRAGEDY

QUEENSLAND visitors to Village Roadshow (ASX: VRL) theme parks have declined 12 per cent in the wake of four deaths a...

Related News

CARSALES CEO RETIRES AS NEW COMPETITOR COX FINALISES MERGER

CARSALES will have a new CEO as it takes on a fresh challenger to its crown as the dominant online car sales portal i...

BUSINESS CONFIDENCE AT A SIX-YEAR HIGH

SMALL and medium businesses have entered 2017 with their confidence at a six-year high, building on strong gains m...

CONSUMERS PESSIMISTIC ENTERING 2017

CONSUMER confidence remains at its weakest point since April 2016, according to the latest Westpac Melbourne Institut...

RISE OF STARTUP SUPPORT PROGRAMS NOT AS ROSY AT IT SEEMS

ENTREPRENEURIAL cultivation companies in Australia are appearing quickly, but questions have been raised about whe...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter