Pie Face Announces International Territory Deals As Part of Growth Strategy

PIE FACE ANNOUNCES INTERNATIONAL TERRITORY DEALS AS PART OF GROWTH STRATEGY

As part of the expansion of its International business Pie Face today announces completion of significant territory deals in South Korea and the Philippines led by Wayne Homschek, global CEO.

Pie Face has signed a definitive agreement with Gadamsa Co Ltd company of South Korea. The deal involves the development of 100 stores over the next 8 years with the first store expected to open in Seoul in quarter 1, 2015. Construction has commenced on a CKF (central kitchen facility) that will be able to service all stores with proprietary, high quality products.

Pie Face has also signed a definitive agreement with GA Foods Ltd company of the Philippines in a deal that involves the development of 40 stores over the next 6 years, with the first store expected to open in Makati city in quarter 1 2015.

Both territories will market a range of iconic Pie Face savoury and sweet pies, pastries and cakes. They also plan to create new products based on 'local favourites' to further expand consumer appeal and in doing so take maximum advantage of the vertically integrated supply chain strategy.

In addition both territories will market a premium espresso style coffee offering. It is this unique combination of high quality, proprietary baked goods and premium coffee that has attracted these sophisticated partners to the Pie Face brand. 'I'm delighted that our international partners have seen the unique opportunity the Pie Face brand represents in combining proprietary baked goods and premium coffee as a competitive advantage in the market' said Andrew Lyme Commercial Manager, who negotiated the deals.

As announced previously the Pie Face brand is driving a three pronged growth strategy - Australian domestic franchising - Australian domestic wholesaling and - International Expansion. The announcement of the South Korea and Philippines deals builds on previous announcements covering New Zealand, Singapore/ Malaysia and the Middle East (UAE, Kuwait, Qatar, Bahrain, Saudi Arabia). Discussions are underway with other major international territories and will be announced in due course.

Pie Face MENA (Landmark) are also on track to have four Middle Eastern stores opened by end 2014, with the first store scheduled to open at Yas Mall, Abu Dhabi in November 2014.

Pie Face Singapore is set to open 3 stores by end 2014 with the first flagship store to open at Bugis Village in Singapore during October.

The total number of stores expected to be opened outside Australia by all international franchise partners and over the term of these contracts is greater than 350, with each territory also opening its own CKF. All territory deals involve an initial territory fee, a royalty on sales and a fee for each store opened.