28 Mar 2014 Famous Brands takes a big bite of Wakaberry
Famous Brands has acquired a 70% stake in the Wakaberry Frozen Yoghurt Bar business, a leader in the hot frozen yoghurt category in South Africa.
Established in 2011 in Durban, the self-serve frozen yoghurt brand is the brainchild of husband and wife team, Ken and Michele Fourie, and their business partner, David Clark. The company currently comprises 33 franchised stores across eight provinces.
Famous Brands chief executive, Kevin Hedderwick, says: “Over the past two years the food services industry has witnessed the emergence of frozen yoghurt as a robust new category in South Africa. This fast growing global phenomenon with its roots in the USA and Europe, is quickly gaining momentum locally.
“Wakaberry pioneered this category in South Africa and as a result of its first-to-market, self-serve, pay-per-weight system and 100% real yoghurt, has established a remarkable reputation in a short space of time.
“We are delighted to have the opportunity to participate in this new and rapidly growing food services sector with a partner which has set the benchmark and still has vast expansion potential in this country.
“There are a number of compelling reasons why we are so excited about this acquisition. Wakaberry is best in its class, which aligns with our group’s brand development growth strategy. In addition, the brand is highly sought after by landlords, and given its low set-up and running costs, is an attractive business proposition for potential franchisees.”
“Furthermore,” he says, “in the short-term we have the ability to significantly ramp up growth of the brand across the South African landscape given our regional structures, thereby rapidly entrenching Wakaberry’s leadership position in the category.
“In the longer term, we have the capability to extend the brand into the rest of Africa region, achieving first-mover status, because of our existing structures within these markets.”
“A key factor underpinning this acquisition is the opportunity to fully integrate the Wakaberry brand into the Famous Brands business,” he notes.
Hedderwick says Wakaberry has the potential to become a “Superbrand” in South Africa. The brand already has in excess of 175 000 Facebook followers, which he says is astonishing given its short history and low retail density across South Africa.
He adds “Wakaberry’s popularity is a reflection of the brand’s powerful appeal and relevance amongst its core LSM 8 – 10 consumer base.”
Wakaberry co-founder, Michele Fourie, says: “We received offers from a number of potential buyers, but are pleased to have selected Famous Brands as our partner because we recognise the value that the group can add to our brand.
“Our strategic intent is to unlock the massive potential of Wakaberry, bringing our ‘bowls of happiness’ to all corners of South Africa. Famous Brands provides the proven and successful business model to make this a reality for us.”
It is anticipated that by June the total network will comprise 40-plus restaurants, with further openings scheduled for the balance of the year.
Source: Business Report, Hotel & Restaurant