Reborn Coffee Signs MOU to Acquire Iconic Korean Bakery Brand Bbang Ssaem Bakery
Reborn Coffee (REBN) has signed a Memorandum of Understanding (MOU) to acquire Bbang Ssaem Bakery, a renowned Korean bakery brand with 31 locations in South Korea. This strategic move aims to expand Reborn's footprint in the coffee and bakery sector, enhancing its offerings in the United States and South Korea. Key aspects of the acquisition include:
1. Integration of Bbang Ssaem's retail operations and proprietary dough technology
2. Immediate upgrade of Bbang Ssaem's coffee to Reborn's proprietary roasted coffee
3. Diversification of Reborn's food and beverage categories
4. Potential positive impact on Reborn's financial health through Bbang Ssaem's strong EBITDA
5. Support for future franchise expansions across the US
The acquisition is backed by significant outside investment and is expected to elevate Reborn Coffee's market position and pave the way for new franchise opportunities.
- Acquisition of Bbang Ssaem Bakery expands Reborn Coffee's product offerings and market reach
- Integration of Bbang Ssaem's 31 retail locations in South Korea enhances Reborn's global presence
- Immediate upgrade of coffee quality in Bbang Ssaem locations using Reborn's proprietary roasted coffee
- Acquisition backed by significant outside investment, indicating investor confidence
- Bbang Ssaem's strong EBITDA expected to positively impact Reborn Coffee's financial health
- Acquisition supports future franchise expansion opportunities across the United States
- None.
Reborn Coffee's acquisition of Bbang Ssaem Bakery is a strategic maneuver aimed at diversifying their product offerings and expanding their market reach. This acquisition is indicative of Reborn Coffee's ambition to become a dominant player in both the coffee and bakery sectors.
From a financial perspective, the integration of Bbang Ssaem Bakery's strong EBITDA is expected to bolster Reborn Coffee's profitability and enhance its financial stability. EBITDA, which stands for Earnings Before Interest, Taxes, Depreciation and Amortization, is a measure of a company's overall financial performance and is used as an alternative to net income. The bakery's robust EBITDA implies that it has been operating efficiently, generating substantial cash flows.
For retail investors, this move could signal a positive shift in Reborn Coffee's financial health. The successful integration of Bbang Ssaem's operations into Reborn Coffee's existing framework will be important in determining the long-term financial impact. Potential risks include integration challenges, cultural differences and the effective transfer of Bbang Ssaem's proprietary technology to new franchises in the US.
This acquisition positions Reborn Coffee to capitalize on the growing trend of coffee shops expanding their offerings to include a variety of baked goods. The move aligns with market trends where consumers seek out establishments that provide a comprehensive cafe experience, encompassing both high-quality coffee and an array of bakery items.
Bbang Ssaem Bakery's established brand and loyal customer base in South Korea provide a solid foundation for Reborn Coffee to expand its presence in the Asian market. Additionally, leveraging Bbang Ssaem's proprietary dough technology could streamline operations and maintain product consistency across new franchise locations in the US, appealing to American consumers' increasing demand for diverse and premium bakery products.
However, Reborn Coffee should be mindful of potential market saturation and the competitive landscape within both the coffee and bakery sectors. Maintaining brand differentiation and consistently delivering high-quality products will be key to capturing and retaining market share.
“Expansion into Bakery Sector Marks a New Era of Growth and Innovation for Reborn Coffee Globally”
BREA, Calif., July 16, 2024 (GLOBE NEWSWIRE) -- Reborn Coffee, a leading coffee brand known for its commitment to quality and sustainability, is thrilled to announce the signing of a Memorandum of Understanding (MOU) to acquire Bbang Ssaem Bakery, one of Korea's most iconic bakery brands. This strategic move will upgrade Reborn Coffee's footprint into the coffee and bakery sector, enhancing its offerings and solidifying its position as a premier coffee & bakery franchise in the United States & South Korea.
Bbang Ssaem Bakery has been a household name in Korea for decades, renowned for its dedication to quality, traditional baking techniques, and innovation. Established in 2019, Bbang Ssaem Bakery has consistently delivered top-tier products, earning a loyal customer base and numerous accolades. With 31 locations throughout South Korea, Bbang Ssaem Bakery offers an extensive range of pastries, breads, and cakes made with the finest ingredients, reflecting the rich culinary heritage of Korea. Immediately, Reborn Korea will be upgrading the Bbang Ssaem Coffee to the premier coffee by distributing the Reborn’s proprietary roasted coffee to all the Bbang Ssaem locations in Korea.
Reborn Coffee is set to integrate Bbang Ssaem Bakery's extensive retail operations in South Korea & US. Bbang Ssaem bakery is renowned for their delicious treats and welcoming atmospheres, positioning them as beloved community gathering places. The bakery's proprietary dough technology ensures easy baking, enabling anyone to deliver the bakery's high-quality goods consistently. This technology will be instrumental in supporting Reborn Coffee's future franchise expansions into other states across the US.
This MOU is backed by significant outside investment aimed at expanding Reborn Coffee's capabilities and market reach. By bringing Bbang Ssaem Bakery under its belt, Reborn Coffee will diversify its food and beverage categories, offering customers an enhanced cafe and special bakery experience. This strategic move is poised to elevate Reborn Coffee to new heights, paving the way for future franchise opportunities across the United States. Additionally, the strong EBITDA generated by Bbang Ssaem Bakery is expected to positively impact Reborn Coffee's financial health, contributing to increased profitability and stability.
"We are thrilled to sign this MOU with Bbang Ssaem Bakery," said Jay Kim, CEO of Reborn Coffee. "This agreement marks a significant milestone in our growth strategy, allowing us to offer our customers a broader range of high-quality products."
Reborn Coffee's signing of the MOU with Bbang Ssaem Bakery represents a bold step forward in the company's mission to provide exceptional food and beverage experiences. This agreement enhances Reborn Coffee's product offerings and strengthens its position globally as a leading player in the competitive F&B industry.
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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