Retail Food Group, parent company of Gloria Jean’s, is acquiring boutique coffee franchise CIBO Espresso for $2.7 million to “accelerate the group’s growth in South Australia”.
Retail Food Group will gain immediate access to the 22 retail locations across Adelaide from Retail Zoo, including four company owned outlets, with plans to transition the network into Gloria Jean’s stores.
The company expects to invest an estimated $1.3 million to provide “compelling incentives” – including capital commitments – for CIBO Espresso franchise partners.
These incentives include the brand’s cold beverages such as the Tim Tam Chiller, food offerings such as açaí, a larger core brand with a global presence and materially larger marketing fund, and an upfront capital commitment for rebranding and equipment
The transaction is expected to be finalised by mid FY2025.
“This acquisition aligns perfectly with our strategic goal to grow our core brands in the café, coffee, bakery (CCB) channel and is an important step to deliver Gloria Jean’s bold ambition to become the most visited beverage destination in the world,” says Matt Marshall, Retail Food Group CEO.
Currently, the six Gloria Jean’s outlets in South Australia generate annual network sales of approximately $5 million, while the CIBO Espresso network has annual sales of approximately $20 million.
Founded more than 23 years ago, CIBO Espresso now joins brands such as Gloria Jean’s, Donut King, Michel’s, Brumby’s Bakery under the Retail Food Group banner.
