Spur bags stake in Bravis Fine FoodsComment on this story
Johannesburg - Spur Corporation had acquired a 30 percent stake in meat-processing business Bravis Fine Foods to secure the supply of ribs for its franchises, the restaurant chain franchisor said yesterday.
The company said this was part of its supply-chain solution strategy and would enhance pork ribs supply, which was the core of its business.
Spur, whose brands include Spur Steak Ranches, John Dory’s, Panarottis Pizza Pasta, Captain DoRego’s and Hussar Grill, will invest R36 million in the form of equity and shareholders loans.
Spur chief executive Pierre Van Tonder said the 30 percent stake would be part of the R120m meat-processing plant that was currently being built and would begin production by December.
The facility would be able to supply meat to the 272 franchised Spur Steak Ranch restaurants, but export markets would also be explored.
“We are now in a position where we can get consistent quality ribs in South Africa to sell to our franchisees, at the same time Bravis Fine Food is a big company which will also sell ribs into the open market,” he said.
Before the deal Spur, which only uses imported ribs from Europe, sourced ribs from four local importers.
Van Tonder said the company would continue using these importers.
“The deal is expected to contribute to greater pricing stability for our franchises, afford them consistent quality of supply and keep menu prices accessible for our customers.”
He added that with ribs being sourced from Europe, pricing was subject to global demand and exchange rate fluctuations.
“This was just [to] make sure that from the supply chain point of view that we have an opportunity to source on a continuous basis a product from overseas to supply our franchises in a group format.”
The new 6 000m2 facility will employ over 50 people and will have capacity to process 700 tons of meat products a month.
“The highly advanced technology of the facility, coupled with the expertise of the other shareholders, will maximise efficiencies within the supply chain. It will also ensure that the highest standards of quality and food safety are observed,” Van Tonder said.
The local pork ribs market was not only small, but its rib cut size was small.
“At the same time the local market was a bit small to facilitate the volume of pork ribs that are used in South Africa,” he explained.
In order to strengthen its supply-chain strategy, Spur commissioned its new sauce bottling plant and also completed its central kitchen facility last year.
Van Tonder said the group was looking into other possible deals going forward, but would not elaborate.
Spur fell 2.71 percent to close at R28.70 yesterday. - Business Report