Asia's demand for safe and secure food sources has driven Asian investors to team up with Perth-founded coffee franchise Muzz Buzz.
Muzz Buzz has established two joint venture agreements – one to create the Muzz Buzz Japan business, which will operate drive-thru stores and sell Muzz Buzz-branded products in supermarkets, and another agreement for expansion into China.
In one deal, two Japanese investors - Takuya Hara and Kazu Tohda - will own 64 per cent and 11 per cent respectively of the Muzz Buzz Japan business.
That business will hold all the exclusive rights to the Muzz Buzz drive-thru and walk-up coffee franchising business operations, including warehousing and distribution, brand merchandising and other brand offerings.
Mr Tohda, who is to become managing director of Muzz Buzz Japan, said he and Mr Hara had been researching the Muzz Buzz brand for more than seven years.
“We are attracted to it because of its strong character, high-quality products and its brand values of fun and entertainment,” Mr Tohda said.
“Our goal is to have the Muzz Buzz products in every family home and office and on sale in every supermarket chain in the country.
“Offering Japanese consumers food made from Australian ingredients will be a strong attraction and a unique selling proposition for our products.”
Muzz Buzz Australia, which is headed by Warren Reynolds, will own the remaining 25 per cent of the Muzz Buzz Japan business.
Mr Reynolds said the agreement was a game changer for the company, which he founded in 2004.
“This deal effectively turbo-charges our growth throughout the Asia-Pacific region and will enable our brand to continue its exponential growth in the years ahead,” he said.
“Our Japanese partners are very experienced at bringing international brands to the Japanese markets and are personally invested in the long term success of the Muzz Buzz brand in Japan.”
Muzz Buzz Australia has also entered into a joint venture with Trans Holding Australia to establish franchises in China.
Principal of the Hong Kong-based group, Jimmy Wong, is expected to open the first two stores in the Chinese cities of Shenzhen and Guangzhou within the next six months.
