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Master licence granted in the Middle East

Over the past few days two recommended stocks, Famous Brands and Massmart have announced expansion plans outside of South Africa. It is one of the beautiful things about investing in equities, the world is sometimes your oyster. Companies can search for areas (on your behalf) where there is growth potential, they do the hard yards to get there and as an investor you benefit. Assuming of course that they get it right.


The other announcement from Famous Brands went as follows:


"Famous Brands has established a strong platform for growth in the Middle East and North Africa regions with the signing of a Master License agreement for Saudi Arabia, Lebanon, Morocco, Iran and Egypt.  The agreement applies to the Group's Steers, Wimpy and Debonairs Pizza brands in all of these countries, as well as the Mugg & Bean brand in Morocco and Egypt."



According to the announcement they are not doing going into this alone, they have formed a partnership with Xcelium, a Lebanese food services business who actually got the master licence.


Kevin Hedderwick said the following about the region.


"The demographics of Middle Eastern and North African consumers favour quick service food consumption.  Approximately 25% – 30% of the Middle Eastern population is aged between 15-29 years old and has grown up eating processed foods and dining in Western-style fast food restaurants and coffee shops. 


In addition, women in these regions are now better positioned to build careers and financial independence than previous generations, promoting increased disposable income.  Furthermore, similar to many other emerging markets, as consumers become cash-rich but time-poor, they gravitate towards convenience-food solutions.  Given these factors, we are optimistic about the potential this Master License agreement holds for Famous Brand."



Same theme different region, may it continue.


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