Share of Jubilant FoodWorks Ltd surged 3% and hit a 52-week high of Rs 724.90 on Friday, 27 December 2024, after the company announced signing an agreement with Coca-Cola India to buy its line of sparkling beverage products.
This agreement will enable the Indian company to serve Coca-Cola and other US giant products at its franchise restaurant chains, including Domino’s Pizza and Dunkin Donuts.
Jubilant FoodWorks, in an exchange filing, said, “It is hereby informed that Jubilant FoodWorks Limited has entered into a Memorandum of Understanding (MoU) with Coca-Cola India Private Limited, containing the principal terms and conditions for purchase of a portfolio of sparkling beverage products and certain other products from The Coca-Cola Company authorised bottlers, and for conducting marketing activities.”
Jubilant FoodWorks will buy a range of sparkling beverage products and a few other items from the Coca-Cola Company’s authorised bottlers, as specified in the Memorandum of Understanding.
The company will market these products as part of its normal commercial operations, as stipulated in the Memorandum of Understanding. The parties will negotiate a Master Agreement based on the primary terms and circumstances specified in the MoU, which will take effect on 1 April 2025. Additional terms and conditions will be consistent with the scope and size of similar agreements.
Jubilant FoodWorks Limited (JFL Group), which was founded in 1995, is a significant player in the food service industry in developing countries. Jubilant FoodWorks, which has 3,130 stores throughout six countries (India, Turkey, Bangladesh, Sri Lanka, Azerbaijan, and Georgia), has built a solid portfolio of both local and foreign brands. It owns franchise rights for well-known multinational businesses Domino’s, Popeyes, and Dunkin’ in addition to its own brands, which include Hong’s Kitchen, an Indo-Chinese quick-service restaurant in India, and COFFY, a café brand in Turkey.
The largest Domino’s franchisee outside of the US, Jubilant FoodWorks, operates Domino’s Pizza restaurants throughout India in addition to Bangladesh and Sri Lanka through subsidiaries. It also brings its famous New Orleans-style menu to Bangladesh, India, Nepal, and Bhutan as the only developer of Popeyes.
The operations of Dunkin’ Donuts in India, where they serve a selection of doughnuts, coffee, and quick bites, are similarly managed by Jubilant FoodWorks. In 2019, the company made its debut in China with Hong’s Kitchen, a Chinese eatery featuring vibrant décor inspired by Asian street markets.
At 12:43 pm, the shares of Jubilant FoodWorks were trading 0.13% higher at Rs 704.85 on NSE.
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