Malaysian F&B group, Secret Recipe Cakes & Café renowned for its award-winning cakes and fusion culinary delights has joined forces with Fosun International Limited to further expand their China market.
During a press conference held in Shanghai, Fosun Group announced the strategic partnership agreement in building a comprehensive collaboration with Secret Recipe to expand its outlets in China. Fosun Group has invested a total of RMB210 million as a minority stakeholder in Secret Recipe. The partnership and development agreement will mark a significant new milestone for both companies where Secret Recipe will be able to leverage on Fosun’s advantages in China, while Fosun Group will be able to invest into the Asean market via the business venture.
Fosun Group established in 1992, is one of the largest private-owned conglomerate in China, incorporated in Hong Kong and headquartered in Shanghai. On 16 July 2007, Fosun International (00656.HK), the parent company of Fosun Group, was listed on the Main Board of the Hong Kong Stock Exchange. As of today, Fosun has established a development model powered by four growth engines comprising “insurance, industrial operations, investments and assets management”, and through implementation of its philosophy of value investment, Fosun is making strides towards its vision of becoming “a premium insurance-oriented investment group with a focus on China’s growth momentum”. Currently, Fosun mainly invests in sectors that would significantly benefit from China’s growth momentum, such as consumption and consumption upgrade, financial services, resources & energy, and manufacturing upgrade, with a view to participating in the rapid development of China’s economy.
As the largest lifestyle café chain in Asia, Secret Recipe has started to expand in China since year 2007 and has more than 50 full service café and café kiosks to date. Secret Recipe expects its future expansion plan in China to be strengthened and further accelerated by Fosun’s involvement and its expertise in the retail business and resource expansion.
During the press conference in Shanghai, China, Mr Guo Guangchang, Chairman of Fosun Group said “Fosun is optimistic towards the prospect of the lifestyle café industry and Secret Recipe is a great representation in this particular industry. In October 2013, China’s President Xi Jin Ping, held talks with Malaysia Prime Minister Datuk Seri Najib Tun Razak. They decided to upgrade bilateral relations to a comprehensive strategic partnership and signed a 5 years agreement to realize the goal of USD160 billion for the 2017 bilateral trade volume. With strong bilateral relations between China-Malaysia, it is believed that Fosun and Secret Recipe will create a win-win situation.”
According to relevant statistic, from year 2004 – 2012, China retail business revenue has grown from RMB 6.04 billion to RMB 23.448 billion. With China urbanization and consumer consumption growth, China F&B industry is expected to keep up the growing rate at 10-15%.This strategic alliance between Fosun and Secret Recipe is mutually beneficial, Fosun is able to expand into the Asean market and we will be able to offer our competitive advantages for Secret Recipe to expand in the China market, bringing this well-known Malaysia brand to the Chinese consumers. ”
“Secret Recipe has attained very strong brand positioning in Malaysia being notable in Euromonitor International 2013 research, as within the Top 3 Most Valuable F&B Brand in Malaysia. We believe we can bring other markets to similar levels and will strive to work and achieve with strong partners like Fosun Group in our market expansion. We firmly believe that the collaboration between Secret Recipe and Fosun will not only provide Chinese consumers with high quality food and dining experience, but also allow stakeholders to tap into China’s growth opportunities. Ｗe believe Fosun Group, being one of the largest conglomerate in China, with its extensive expertise in investmens, developments and retail, will be the best choice to catapult Secret Recipe to greater heights in China.” commented Secret Recipe Group CEO, Dato’ Steven Sim at the press conference, organized by Fosun Group.
The partnership between Secret Recipe and Fosun International Limited, is estimated to be able to develop the China market immensely, and will be able to contribute 50% to Secret Recipe China’s total group revenue in year 2015, with more than 100 outlets planned.