Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Cooks’ growth through acquisition

23 April 2014

Cooks’ growth through acquisition

Canadian purchase seals global IP objective

To paraphrase a 1980s advertisement, “they liked it so much they bought the company” [1]. No, not an American shaver company, but a Canadian coffee business that was “their” previous owner.

The “they” in this story are New Zealand brothers Stuart and Lewis Deeks who started an Esquires coffee franchise here in 2002, now they have bought their owner.

From a single store, the Deeks brothers built Esquires in to a nationwide chain of 49 coffee houses before going global. Then they sold off the New Zealand and Australian stores before backing the global Esquires business in to listed Cooks Global Foods.

And this week the story goes full circle with Cooks announcing it has completed the formalities to acquire the Esquires Canadian intellectual property rights, the original Esquires franchisor founded in 1993.

Cooks now licenses back to Esquires Canada the right to use the IP to nine Esquires Coffee Houses stores in British Columbia and also for the purpose of a Master Franchise Agreement for Alberta.

The existing outlets will at least in the short term continue to report to the original owners under a licence agreement; whilst Cooks plans to focus on aggressive growth nationwide which will include the construction of a number of new corporate flagships this year and expansion into other Canadian provinces.

Cooks chairman Keith Jackson says the deal means Cooks who already owned the global IP for Esquires now have established businesses in the UK and Ireland, throughout the Middle East and China as well as in Canada. Currently only New Zealand and Australia are excluded.

“Our strategic objective for Cooks in entering this arrangement is to expand into Canada on our own account building a presence across that market, including in new provinces and territories.

“Because Esquires was founded in Canada, we have excellent brand recognition already in that market so we are keen to capitalise on that by growing the numbers of franchisees,” Jackson says.

Cooks executive director Stuart Deeks says it is extremely pleasing” to clinch the Canadian purchase.

“It’s not only a symbolic step for Cooks; it’s also a milestone as we have successfully concluded our plan to tidy up the international IP outside of Australasia,” he says.

“Internationally we have concluded the planned acquisitions of Esquires businesses outside of Australasia and we can now get on with growing the business as a world class franchisor which is exactly what we intend to do” he smiles.

Following the opening this month of four franchisee-owned stores in the Middle East, The Cooks Esquires outlets will number 81 outside of Australasia. There are currently plans to announce two very significant new agreements during the coming few months as well as significant organic growth from within the system.

According to the Coffee Association of Canada the food service sector coffee market is estimated at around C$4 billion. It says there are between four and five thousand independent cafes and coffee shop owners and several thousand franchise owner-operators.

[1] The phrase is attributable to an American advertisement for Remington shavers that quoted business owner Victor Kiam saying “I liked the shaver so much I bought the company”, one of the more memorable advertising slogans of the 1980s.

About Cooks Global Foods
Cooks Global Foods operates in world markets and is listed on the New Zealand Stock Exchange under the code CGF. It owns the intellectual property and master franchising rights to Esquires Coffee Houses worldwide excluding New Zealand and Australia. Esquires currently operates 81 coffee houses in Canada, the United Kingdom and Ireland, the Middle East and China. The supply division of CGF supplies both Esquires stores and other third party customers. Related businesses within the group include New Zealand-based subsidiaries Progressive Processors Ltd and Scarborough Fair.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Fruit & Veg Crackdown: Auckland Fruit Fly Find Under Investigation

The Ministry for Primary Industries (MPI) is investigating a find of a single male Queensland fruit fly in a surveillance trap in the Auckland suburb of Grey Lynn... MPI has placed legal controls on the movement of fruit and some vegetables outside of a defined circular area which extends 1.5km from where the fly was trapped in Grey Lynn. More>>

ALSO:

Scoop Business: Westpac NZ Reaches $2.97M Swaps Settlement

Westpac Banking Corp’s New Zealand unit has agreed to pay $2.97 million in a settlement with the Commerce Commission over the way the bank sold interest rate swaps to farmers between 2005 and 2012. More>>

ALSO:

Going Dutch: Fonterra Kicks Off $144M Partnership With Dutch Cheese Maker

Fonterra Co-operative Group, the world’s largest dairy exporter, has commissioned a new dairy ingredients plant in Heerenveen, in the north of the Netherlands, its first wholly-owned and operated ingredients plant in Europe. More>>

ALSO:

Scoop Business: NZ Retail Sales Beat Estimates

New Zealand retail sales rose more than expected in the fourth quarter, led by vehicle-related transactions, food and beverages, adding to evidence that cheap credit and a growing jobs market are encouraging consumers to spend. More>>

ALSO:

Delivery Cuts Go Ahead: 'Government Money Grab' From NZ Post

"It's a money grab by the Government as the shareholder of New Zealand Post" says Postal Workers Union advocate Graeme Clarke about the changes announced by NZ Post. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news