SINGAPORE (July 5): ST Food Industries (ST Group) has entered into a master franchise agreement with Hyein Foods Co for the exclusive rights to the ‘NeNe Chicken’ brand in New Zealand.
In an SGX filing on July 4, ST Group announced that the agreement was set to have an initial term of 10 years, with an option for a further 10 year renewal.
Prior to securing this agreement, ST Group has already secured a presence in New Zealand with 15 outlets under the ‘PappaRich’, ‘Gong Cha’ and ‘Hokkaido Baked Cheese Tart’ brands - comprising nine group-owned outlets and six outlets owned and operated by its sub-franchisees.
In addition, ST Group Food has 26 existing NeNe Chicken outlets in Australia and Malaysia - seven of which are company-owned outlets and 19 are owned by sub-franchisees and sub-licensees.
Saw Tatt Ghee, executive chairman and CEO of ST Group, says,“The Master Franchise Agreement is part of our strategy to expand our business in New Zealand where we already have businesses under the “PappaRich”, “Gong Cha” and “Hokkaido Baked Cheese Tart” brands. Leveraging on our knowledge of the market as well as our established business relationships, we are confident in our ability to make “NeNe Chicken” a success in New Zealand.”
Shares in ST Group last traded at 27.5 cents.
