Retail Food Group queries latest media reports

Posted by Daniel Palmer on 9th December 2009

Australian retail food brand manager and franchisor Retail Food Group has questioned the validity of recent media reports regarding their Indian expansion plans, labelling them “grossly inadequate”.

“Retail Food Group Limited (ASX:RFG) has become aware of continued media reports indicating that the Company will enter the Indian market in 2010 and anticipates revenues in the order of US$87m from those operations within five years,” the company noted in a statement. “The foregoing report and quotations attributed therein to RFG personnel are grossly inaccurate.”

“As previously indicated to the market, the Company is exploring the potential expansion of its iconic franchise systems into international markets (including India).”

RFG CEO Tony Alford added that they recently participated in a franchise exhibition in India but, while their systems well received, no decisions have been made.

“Given the level of interest in RFG’s presence, the Indian media provided considerable coverage but has unfortunately embellished the Company’s intent and the nature of its participation in the exhibition,” he advised. “The Company remains focused on proliferating its systems and business model in the international market by partnering with robust licensees capable of applying sufficient resources, franchising expertise and resolve to ensure the success of such ventures.”

“It is not the Company’s intention to establish its own managed operations in countries other than Australia and New Zealand.”