SPC expands into Middle East with Galadari Brothers

SPC Group Executive Vice President Hur Jin-soo, right, shakes hand with Mohammed Galadari, chairman of Galadari Brothers Group, at Fairmont Riyadh in Saudi Arabia, Sunday, after signing a memorandum of understanding for a joint venture partnership to expand Paris Baguette's markets into the Middle East. Courtesy of SPC

Paris Baguette has signed a partnership with Saudi Arabia's Galadari Brothers Group, a major business group in the Middle East, to expand its bakery shops into the region for the first time, Korea's largest bakery franchise said Monday.

Hur Jin-soo, executive vice president of SPC Group, which operates Paris Baguette, met Mohammed Galadari, chairman of Galadari Brothers, at Fairmont Riyadh in Saudi Arabia, Sunday, and signed a memorandum of understanding (MOU) for a joint venture partnership to expand Paris Baguette's consumer markets into the region.

Under the deal, the two companies will establish a joint venture the following year and launch new Paris Baguette shops in 12 countries in the Middle East and Africa including Saudi Arabia, UAE, Qatar, Kuwait and Bahrain by 2033.

A factory under construction in Malaysia's Johor Bahru, due for completion in 2024, will make and purvey products for the new markets. The Korean firm launched the Malaysian factory to introduce certified halal products to a potential market of 1.9 billion Muslims.

Galadari on Sunday recognized Paris Baguette's global network of shops in North America, Europe and Southeast Asia. He said his company's significance in the Middle Eastern markets and operational experience in the region will generate business synergy in cooperation with the Korean bakery's global brand power.

Hur said halal markets in the Middle East are strategically critical to his company's global expansion. "With close cooperation with Galadari Brothers Group and our aggressive investment, Paris Baguette will keep expanding its consumer markets to worldwide," he said.

Founded in 1961 in the UAE, Galaradi Brothers operates media, car and food businesses in Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE as well as the U.K., Australia and Sri Lanka. The international company runs about 1,000 restaurants in the Middle East.

The deal came as Hur joined the Korean delegation of President Yoon Suk Yeol, which includes government officials and business representatives who paid a state visit to Riyadh on Sunday.

Paris Baguette's overseas operation opened its 500th store earlier this week. Last year, the company's overseas branches registered over 600 billion won ($443 million) in sales.