MInor's food unit, listed Singapore group sign pact for BTM Thailand
Minor Food Group (MFG), a business unit under Minor International (MINT), together with the BreadTalk Group, a listed company in Singapore, have signed an agreement to establish a 50:50 joint-venture company, BTM Thailand, to operate a bakery business under the BreadTalk brand in Thailand.
This marks the first collaboration between the two since MFG’s 11-per-cent investment in BreadTalk Group in Singapore last year. MFG’s total investment is Bt103 million for the 50-per-cent stake in BTM Thailand. Subject to customary conditions precedent, the joint venture is expected to be established by September 30.
The BreadTalk Group first entered Thailand in 2005. It now has 23 company-owned bakery outlets under the BreadTalk and Toast Box brands as well as two franchised Din Tai Fung outlets and three self-operated Food Republic food atriums.
While the BreadTalk Group will support BTM Thailand as brand owner and provide technical know-how, the new entity will leverage on MFG’s established platform in Thailand, such as supply-chain management, legal, franchising, outlet expansion and property management. BTM Thailand therefore sees good growth potential over the next few years with outlet expansion, initially with the company-owned business model and later with franchises.
William Heinecke, chairman and group chief executive of MINT, said: “We are honoured to have the opportunity to strengthen our partnership even further with BreadTalk. The investment adds a new brand, BreadTalk, to MFG’s ever-growing Thailand hub. I hope that this initial step in our collaboration with BreadTalk will blossom into many others in the coming years.”
Paul Kenny, CEO of MFG, added: “We are pleased to welcome one of the most exciting bakery brands into our Thai portfolio. We look forward to working with BreadTalk to successfully grow the operation in Thailand, a market in which we are confident that immense growth potential exists for the bakery business.”
George Quek Meng Tong, chairman of BreadTalk Group, also said: “With MFG as our strategic partner, we will be able to accelerate BreadTalk’s store growth in Thailand. The partnership will enhance operational excellence and further extend our brand presence with MFG’s strong F&B [food and beverage] expertise and local network.”