MOVING INTO NIGERIA
Famous Brands* announced a 49% purchase of Mr Bigg’s in Nigeria, making it the biggest player in the rest of Africa. The oddity was that Famous Brands only took 49%, as it usually takes a majority so as to ensure control. Management has had many good reasons as to why but I wonder if it isn’t also about getting access to a central kitchen and distribution network. Sure, it doesn’t own the fast-food franchise, but it will be able to improve it and then plug its other brands into this network. This should give almost immediate better economics for new stores in the country. email@example.com
@SimonPB *The writer holds shares in Shoprite, Famous Brands and Capitec.