MTY Food Group and Keurig Canada Announce Agreement Taking Van Houtte-Branded Café-Bistros into New Era
Public Company Information:
MONTREAL & WATERBURY, Vt.--(BUSINESS WIRE)--MTY Food Group, Inc. (MTY) (TSX: MTY), franchisor and operator of multiple concepts of quick service restaurants, and Keurig Canada Inc., a subsidiary of Keurig Green Mountain, Inc. (Keurig) (NASDAQ: GMCR), a leader in specialty coffee, coffee makers, teas and other beverages with its innovative brewing technology, today announced the companies have reached an agreement regarding the Van Houtte Café-Bistros franchise network. Under the terms of the agreement, Keurig Canada will maintain ownership of the Van Houtte brand, image, and wholesale business, while MTY will own and operate Van Houtte Café-Bistros, taking them into a new era of great food and beverage service.
MTY has acquired certain assets from Keurig used exclusively in connection with the Van Houtte-branded Café-Bistro franchise system, comprised of 50 franchised and one Keurig-owned café-bistro in Quebec, which generated total franchise sales of over $25 million for franchisees in the 12-month period ended September 29,2014 most recent completed fiscal year. As part of the agreement, MTY will offer only Van Houtte® branded coffee, and other Keurig Brewed® products, roasted and packaged by Keurig for sale in Van Houtte-branded Café-Bistros. In turn, Keurig Canada has licensed use of the Van Houtte® brand to MTY in perpetuity. Financial terms of the transaction, which closed November 7th, were not disclosed.
“MTY is very proud to become the trusted business partner of Keurig to own and operate such an iconic franchise network,” said Stanley Ma, CEO of MTY. “The addition of the Van Houtte-branded Café-Bistros will further increase the presence of MTY in the quick service restaurants market, and we are confident the partnership with Keurig will benefit MTY, Keurig and the franchisees of the network.”
“Through this relationship with MTY, Keurig will have the opportunity to continue to focus on roasting, packaging and distributing the quality Van Houtte coffees our consumers love and expect both in their neighborhood Van Houtte-branded Café-Bistros as well as in local stores and offices,” said Stéphane Glorieux, president of Keurig Canada. “We know that MTY’s expertise in operating quick service restaurants will ensure the high-quality expectations associated with the Van Houtte brand and will be well represented at the Van Houtte-branded Café-Bistros going forward.”
About MTY Food Group, Inc.
MTY Group Inc. (TSX: MTY) owns and operates a network of over 30 brands and 2,700 franchised restaurants. With 35 years of experience and a solid reputation on the market, MTY is a leader in the quick service restaurant industry in Canada.
MTY Forward Looking Statements
Certain information in this News Release may constitute "forward-looking" information that involves known and unknown risks, uncertainties, future expectations and other factors which may cause the actual results, performance or achievements of the Company or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. When used in this News Release, this information may include words such as "anticipate", "estimate", "may", "will", "expect", "believe", "plan" and other terminology. This information reflects current expectations regarding future events and operating performance and speaks only as of the date of this News Release. Except as required by law, we assume no obligation to update or revise forward-looking information to reflect new events or circumstances. Additional information is available in the Company’s Management Discussion and Analysis, which can be found on SEDAR at www.sedar.com.
About Keurig Green Mountain, Inc.
As a leader in specialty coffee, coffee makers, teas and other beverages, Keurig Green Mountain (Keurig) (NASDAQ: GMCR), is recognized for its award-winning beverages, innovative brewing technology, and socially responsible business practices. The Company has inspired consumer passion for its products by revolutionizing beverage preparation at home and in the workplace. Keurig supports local and global communities by investing in sustainably-grown coffee and by its active involvement in a variety of social and environmental projects. By helping consumers drink for themselves, we believe we can brew a better world. For more information visit: www.KeurigGreenMountain.com. To purchase Keurig® products visit: www.Keurig.com or www.Keurig.ca.
Keurig routinely posts information that may be of importance to investors in the Investor Relations section of its website, www.KeurigGreenMountain.com, including news releases and its complete financial statements, as filed with the SEC. The Company encourages investors to consult this section of its website regularly for important information and news. Additionally, by subscribing to the Company's automatic email news release delivery, individuals can receive news directly from Keurig as it is released.
About Keurig Canada Inc.
Keurig Canada Inc. (Keurig Canada) is the Canadian business unit of Keurig Green Mountain, Inc. (Keurig). The company offers a wide range of premium coffees in a variety of formats, as well as Keurig® Single Cup Brewers and many Keurig® brewed coffees, teas and other beverages. Consumers can enjoy Keurig Canada products whether they are at home, at work, in a café-bistro and in other points of sale. Keurig Canada markets flagship brands such as Keurig®, Van Houtte®, Timothy’s World Coffee®, Barista Prima Coffeehouse®, as well as Green Mountain Coffee®, Tully’s® and Café Escapes® to highlight a few.
In addition to revolutionizing the Canadian beverage marketplace, Keurig Canada is also a leader in sustainable development thanks to its programs supporting local and global communities, and its initiatives to reduce its environmental footprint.
The company's Canadian principle office, management team, and coffee roasting and beverage packaging plants are located in Montreal, Quebec. Also located in Quebec are Keurig Canada’s subsidiaries, VKI Technologies Inc., and Van Houtte Coffee Services Inc. who together offer innovative beverage service options to away from home customers from branches in 30 cities across Canada. For more information, visit corp.keurig.ca, KeurigGreenMountain.com, Keurig.ca, VanHoutte.com, Timothys.com, baristaprima.ca and vkitech.com.
Keurig Forward-Looking Statements
Certain information in this filing constitutes "forward-looking statements." Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as "believes," "expects," "anticipates," "estimates," "intends," "plans," "seeks" or words of similar meaning, or future or conditional verbs, such as "will," "should," "could," "may," "aims," "intends," or "projects." However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. These statements may relate to: the expected impact of raw material costs and our pricing actions on our results of operations and gross margins, expected trends in net sales and earnings performance and other financial measures, the expected productivity and working capital improvements, the success of introducing and producing new product offerings, the impact of foreign exchange fluctuations, the adequacy of internally generated funds and existing sources of liquidity, such as the availability of bank financing, the expected results of operations of businesses acquired by us, our ability to issue debt or additional equity securities, our expectations regarding purchasing shares of our common stock under the existing authorizations, projections of payment of dividends, the impact of pending shareholder litigation, and the impact of pending antitrust litigation pending against the Company in the United States and Canada. A forward-looking statement is neither a prediction nor a guarantee of future events or circumstances, and those future events or circumstances may not occur. Management believes that these forward-looking statements are reasonable as and when made. However, caution should be taken not to place undue reliance on any such forward-looking statements because such statements speak only as of the date when made. We expressly disclaim any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In addition, forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our Company's historical experience and our present expectations or projections. These risks and uncertainties include, but are not limited to, those described in Part II, "Item 1A. Risk Factors" in our Form 10-Q filed with the Securities and Exchange Commission for the thirteen weeks ended June 28, 2014, and Part II "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" in our fiscal 2013 Annual Report filed on Form 10-K, as amended, and elsewhere in those reports and those described from time to time in our future reports filed with the Securities and Exchange Commission.