Reborn Coffee Closes Master License Agreement for UAE
Reborn Coffee (Nasdaq: REBN), a specialty coffee retailer based in California, has announced a master licensing agreement to expand into the UAE market. The partnership with Reborn UAE, led by CEO Mahmood Arjomand, plans to open over 20 stores, including a flagship location in Jumeirah, Dubai. This strategic move aims to establish a significant presence in the Middle East, with additional plans for a distribution center and roasting and warehouse facilities. The collaboration seeks to introduce Reborn Coffee's high-quality products and sustainable practices to the UAE's evolving coffee culture.
- Reborn Coffee has secured a strategic partnership to expand into the UAE market.
- Plans to open over 20 stores in the UAE, starting with a flagship location in Jumeirah, Dubai.
- Establishment of a distribution center and roasting and warehouse facilities in the Middle East.
- The collaboration brings local expertise from Reborn UAE, enhancing market penetration.
- Commitment to sustainable growth and ethical business practices.
- None.
Insights
Reborn Coffee's expansion into the UAE through a master licensing agreement marks a strategic move into a lucrative market. The UAE has seen a rapidly growing coffee culture, particularly in Dubai, known for its affluent population and high consumer spending. Opening a flagship store in Jumeirah, a prime location, could significantly elevate the brand's visibility.
This move also aligns with the global trend towards specialty coffee, which commands higher margins compared to traditional coffee offerings. The partnership with Reborn UAE, which has local expertise, can potentially minimize operational risks and enhance market penetration. However, retail investors should be aware that such international expansions often come with higher initial costs and longer timeframes to reach profitability.
Additionally, the plan to open 20-plus stores indicates a long-term commitment to the region, suggesting sustained revenue streams if the brand is well-received. The emphasis on sustainable practices also taps into the increasing consumer demand for ethical brands, potentially adding to Reborn's competitive edge.
From a financial perspective, licensing agreements like the one Reborn Coffee has entered into are generally favorable. They allow a company to expand its footprint with relatively lower capital expenditure compared to direct ownership of stores. This strategic move could improve Reborn Coffee's revenue without significantly impacting its balance sheet.
However, investors should scrutinize the financial terms of the agreement, particularly the revenue-sharing aspects. The profitability of such ventures often depends on local market conditions and operational efficiencies. The UAE market, while lucrative, is also competitive with many established coffee brands. Hence, achieving significant market share could be challenging in the short term.
In terms of long-term financial health, the ability to establish a stable and profitable operation in the UAE could lead to substantial revenue growth. This would be particularly true if Reborn Coffee can replicate its business model in other Middle Eastern countries, leveraging the UAE as a regional hub.
Strategic Partnership Plans to Open 20-Plus Stores in the UAE, Including a Flagship Location in Jumeirah, Dubai
BREA, Calif., June 27, 2024 (GLOBE NEWSWIRE) -- Reborn Coffee Inc. (Nasdaq: REBN), ("Reborn", or the "Company"), a specialty coffee retailer based in California, announced today a master licensing deal that will facilitate Reborn Coffee's dynamic entry into the vibrant UAE market, with its first flagship location set to open in Dubai, UAE.
This partnership between Reborn Coffee and Reborn UAE, led by CEO Mahmood Arjomand, marks a significant step in expanding Reborn Coffee's footprint beyond its current boundaries. Under this licensing agreement, Reborn Coffee Licensor and Reborn UAE Licensee will collaborate to establish Reborn Coffee outlets, a distribution center for the Middle East, and roasting and warehouse facilities. The aim is to establish flagships store within one year, with Jumeirah, Dubai, as the first location. Additionally, the plan includes opening 20 more stores across the UAE to solidify Reborn Coffee's presence in the region.
Reborn UAE brings a wealth of local knowledge and expertise to this collaboration, providing an ideal foundation for Reborn Coffee's expansion efforts. This partnership aims to introduce Reborn Coffee's premium products to a broader audience and contribute to the region's thriving coffee culture. Reborn Coffee will bring specialty premium coffee technology to the Middle East, catering to the region's demand for high-quality coffee and the latest trends.
"We are truly honored to join forces with Reborn UAE in Dubai," said Jay Kim, CEO of Reborn Coffee. "Together, we aim to elevate the coffee experience in the UAE by delivering Reborn Coffee's exceptional quality, innovation, and sustainability.”
As part of this strategic alliance, Reborn Coffee and Reborn UAE are committed to fostering sustainable growth and ethical business practices in the UAE's coffee industry. The collaboration will emphasize responsible sourcing of coffee beans and environmentally friendly roasting processes, aligning with global sustainability trends.
The coffee culture in the UAE is rapidly evolving, with a growing appreciation for specialty coffee. The region's new coffee trend focuses on unique brewing techniques and high-quality beans, aligning perfectly with Reborn Coffee's offerings. This partnership represents a significant occasion for Reborn Coffee and Reborn UAE and a significant milestone in the UAE's coffee scene. As both parties embark on this exciting journey, they look forward to serving unique coffee experiences and contributing to the region's thriving café culture.
About Reborn Coffee
Reborn Coffee, Inc. (NASDAQ: REBN) is focused on serving high quality, specialty-roasted coffee at retail locations, kiosks, and cafes. Reborn is an innovative company that strives for constant improvement in the coffee experience through exploration of new technology and premier service, guided by traditional brewing techniques. Reborn believes they differentiate themselves from other coffee roasters through innovative techniques, including sourcing, washing, roasting, and brewing their coffee beans with a balance of precision and craft. For more information, please visit www.reborncoffee.com.
Forward-Looking Statements
All statements in this release that are not based on historical fact are “forward-looking statements.” While management has based any forward-looking statements included in this release on its current expectations, the information on which such expectations were based may change. Forward-looking statements involve inherent risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements, as a result of various factors including those risks and uncertainties described in the Risk Factors and Management’s Discussion and Analysis of Financial Condition and Results of Operations sections of our recent filings with the Securities and Exchange Commission (“SEC”) including our Form 10-Q for the first quarter of 2023, which can be found on the SEC’s website at www.sec.gov. Such risks, uncertainties, and other factors include, but are not limited to, the Company’s ability to continue as a going concern as indicated in an explanatory paragraph in the Company’s independent registered public accounting firm’s audit report as a result of recurring net losses, among other things, the Company’s ability to successfully open the additional locations described herein as planned or at all, the Company’s ability to expand its business both within and outside of California (including as it relates to increasing sales and growing Average Unit Volumes at our existing stores), the degree of customer loyalty to our stores and products, the impact of COVID-19 on consumer traffic and costs, the fluctuation of economic conditions, competition and inflation. We urge you to consider those risks and uncertainties in evaluating our forward-looking statements. We caution readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.
Contacts
Investor Relations Contact:
Chris Tyson
Executive Vice President
MZ North America
REBN@mzgroup.us
949-491-8235
Company Contact:
Reborn Coffee, Inc.
ir@reborncoffee.com
FAQ
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