December 27, 2024
New Delhi, India
Jubilant-Coca-Cola
Jubilant FoodWorks Ltd (JFL), a leading player in the food service industry, announced the signing of a memorandum of understanding (MoU) with Coca-Cola India. This partnership aims to procure sparkling beverage products and other select items from Coca-Cola’s authorized bottlers, further enhancing JFL’s consumer offerings.
Key Highlights of the MoU:
- Product Procurement: JFL will purchase a portfolio of sparkling beverages and other products from Coca-Cola’s bottlers.
- Marketing Activities: The company will also conduct marketing initiatives for these products, as defined in the MoU.
- Master Agreement Timeline: The agreement is set to commence on 1 April 2025, based on the terms outlined in the MoU.
Strategic Significance:
The collaboration aligns with JFL’s strategy to expand its beverage offerings across its extensive restaurant network, which spans six markets, including India, Turkey, Bangladesh, Sri Lanka, Azerbaijan, and Georgia. With 2,199 stores in India as of September, the move strengthens its competitive edge in the quick-service restaurant sector.
This partnership follows Jubilant Bhartia Group’s recent investment in Hindustan Coca-Cola Holdings Pvt. Ltd., acquiring a 40% stake in Coca-Cola’s largest Indian bottler, Hindustan Coca-Cola Beverages Pvt. Ltd.
Competitive Context:
In 2018, JFL’s Domino’s Pizza chain partnered with rival PepsiCo to offer beverages like Pepsi, Mountain Dew, 7Up, and Mirinda. The new deal with Coca-Cola signifies a strategic shift, providing customers with access to popular Coca-Cola brands such as Coca-Cola, Thums Up, Sprite, Minute Maid, Maaza, and more.
Company Overview:
JFL operates a diversified portfolio of quick-service restaurants, holding franchise rights for global brands such as Domino’s, Popeyes, and Dunkin’ Donuts. It also manages Hong’s Kitchen, an Indo-Chinese QSR brand in India, and COFFY, a cafe brand in Turkey.
For Q2 FY2024, JFL reported a 26.4% decline in net profit to Rs 71.5 crore, despite a 42.8% surge in revenue to Rs 1,954.7 crore compared to the previous year.
Jubilant FoodWorks shares gained 2.56%, to reach an intraday high of ₹722, following the announcement of a memorandum of understanding (MoU) with Coca-Cola India. This agreement enables Jubilant FoodWorks to procure sparkling beverages from Coca-Cola’s authorized bottlers, enhancing its beverage offerings across its restaurant network.
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