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famous brands Java Lava stake bought for R7.3m

June 27 2012 at 05:00am

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Famous Brands had bought a 60 percent stake in Java Lava Beverage Manufacturers, a privately owned coffee roasting and packaging business, for R7.3 million, the JSE-listed restaurant group said yesterday. Java Lava supplies filter coffee, espresso beans, hot chocolate and milk powders to food service firms and retailers. The deal, effective next month, will be settled from cash reserves. Famous Brands chief executive Kevin Hedderwick said the acquisition was in line with its strategy to expand its manufacturing capability. The short-term intention is to overlay Famous Brands’ business model on the existing Java Lava operation and to extract obvious synergies with Java Lava becoming a focused manufacturing facility. The longer-term goal is to create a specialist coffee firm that will supply coffee and related hot beverage products to the group’s franchise network. Famous Brands owns a portfolio of established fast-food chains including Milky Lane, Wimpy, Mugg & Bean, tashas, Vovo Telo and Juicy Lucy. Its stock rose 0.6 percent to R56.61 yesterday. – Samantha Enslin-Payne


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