Segafredo Zanetti Espresso is very pleased to start a cooperation with La Chapelle Fashion Co Ltd one of the largest fashion apparel companies in the People's Republic of China (PRC) with 7,893 retail points located in approximately 2,500 physical locations across all 31 provinces
La Chapelle, through its wholly-owned subsidiary LaCha Fashion 1 Limited, signed a cooperation agreement with TNPI HK Co., Limited, that has the franchise right of Segafredo Zanetti Espresso Café in South Korea and the PRC (including Hong Kong) commanding an investment of USD3.75 million. Upon completion of the transaction, La Chapelle is to directly hold 20.75% of the shares of TNPI
This transaction launches the cooperation between La Chapelle and Segafredo, which can facilitate the expansion of Segafredo in the PRC, increase our brand awareness, and another important step in our business development.
By introducing the Segafredo brand, La Chapelle will open Segafredo coffee shops within its apparel stores, adding the leisure elements of tasty food, trendy items and daily living products, so customers can appreciate a quality visit when shopping.
We are very proud to have been chosen by La Chapelle, and with to the strong relation we have with our franchisee. We look forward to start this new cooperation!
Mr. Wang Yong, Executive Vice President of La Chapelle, said, "The need to consolidate industry resources is pressing along with the more intense market competition. Apparel retailers must capture the first-mover advantage and expand market share by enhancing the shopping experience and adding value to the products in order to stand out among the competition. We have launched the branded lifestyle stores on a timely basis after spotting the growing middle class demographic segment and rising per capita disposable income in China. Through this initiative we are able to leverage the advantages and bright prospects of resource consolidation of the apparel and catering industries, as well as the development strategies of Segafredo in Asia and China. We believe the investment in Segafredo will generate synergies for the Group's overall business and facilitate our long-term rapid growth and can substantially improve the Group's revenue.
About Massimo Zanetti Beverage Group
Massimo Zanetti Beverage Group is a world leader in the production, processing and marketing of roasted coffee and other selected categories of colonial products, distributed in about 110 countries. The Group manages the different activities, from procurement to consumption, operating 18 facilities across Europe, Asia and the Americas, and through a global network of about 400 coffee shops in 50 countries. Moreover, MZBG completes the range of its products through the sale of coffee makers and complementary products, such as tea, cocoa, chocolate and top quality spices
About Shanghai La Chapelle Fashion Co. Ltd. (6116.HK)
Founded in 1998, Shanghai La Chapelle Fashion Co. Ltd. ("La Chapelle", or the "Group") is a fast-growing multi-brand fashion group in the PRC, which designs, markets and sells apparel products with a focus on mass-market ladies' casualwear. The Group strives to offer customers the latest fashions at competitive prices through a wide range of apparel products under 10 brands, namely La Chapelle, Puella, UlifeStyle, 7m, Candie's, La Babité, Vougeek, Pote, MARC ECKŌ, La Chapelle Kids, and 6 brands that the Group has invested in, including OTHERMIX, OTHERCRAZY JACK WALK, O.T.R, SiaStella and tanni. The Group directly sells products to retail customers through offline retail points and online operating platforms. All retail points are directly controlled and operated by the Group. As at 31 December 2015, the Group's retail network comprised 7,893 retail points located in approximately 2,500 physical locations across all 31 provinces, autonomous regions and municipalities in China.
About TNPI HK Co., Limited
TNPI HK Co., Limited ("TNPI") was established in Hong Kong in 2012. In October 2014, TNPI signed a General Franchise Agreement with Segafredo, thereby obtaining the franchise right of Segafredo in the PRC (including Hong Kong) and South Korea. Segafredo is a renowned coffee brand in Italy and opened the first coffee shop in 1988.