May 21, 2008

Famous Brands plans to re-enter chicken market
 

South African company Famous Brands plans to re-enter the chicken market after its revenue exceeded ZAR 1 billion (US$130.5 million) for the first time.
 

Operating profit was up 52 percent to ZAR 210 million (US$27.4 million) while earnings per share increased 37 percent to ZAR 1.37 (US$0.18)

The company's obvious gap is that it is not in the chicken business, which is important as it's a strong growth area in South Africa and is connected to healthiness, according to Kevin Hedderwick, chief operation officer of Famous Brands.

It is not clear whether Famous Brands would expand its menus to offer more chicken meals or to launch an acquisition, but Hedderwick said the company would explore all options.

Famous Brands tried its hands on the chicken business five years ago, signing a licence agreement with US-based AFC International to open Church's Chicken stores in South Africa and 18 African countries over five years. However, Famous Brands left the agreement one year after launching 12 stores in the country at a cost of ZAR 5 million (US$652,741).

Famous Brands is a quick-service restaurant franchiser and supplier of retail and catering food products with 1078 national stores and 87 international stores.