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

 

Media: Fairfax Moves To Create Modern Newsroom

Fairfax Media New Zealand continues its newsroom transformation this week, with a proposal to further organise its editorial operations into focused, local teams and specialist national topic areas. More>>

ALSO:

Dairy: Fonterra Forecast For 2015/16 Season

Fonterra Co-operative Group Limited has today reduced its forecast Farmgate Milk Price for the 2014/15 season to $4.40 per kgMS. Along with its previously announced forecast dividend range of 20-30 cents per share, the change amounts to a forecast ... More>>

ALSO:

BusinessDesk: SkyCity Lifts Minimum Convention Centre Investment To $430M

SkyCity Entertainment Group, the casino operator, has lifted the minimum it will invest in the Auckland International Convention Centre to $430 million and said total costs including land may be $450 million to $470 million. More>>

Statistics: Drop In Dairy Prices Leads Fall In Exports

Total goods exports fell $240 million (5.5 percent) to $4.2 billion in April 2015 compared with April 2014, Statistics New Zealand said today. More>>

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>


BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>

Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>

BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news