Marka acquires Morelli’s Gelato for Dh31m
Dubai: Marka, a retailer operating in the UAE fashion and food and beverage sectors, said Wednesday it has acquired the Middle East franchise operations of Morelli’s Gelato for Dh31 million.
The UK-based ice-cream brand, which has been franchised in the Middle East through Gourmet Gulf Food, has five outlets in the region, one each in The Dubai Mall, The Beach mall in Dubai’s JBR (Jumeirah Beach Residence), Bahrain City Centre, The Avenues mall in Kuwait and Mall of Dhahran in Saudi Arabia. The outlets will join Marka’s food and beverage division, Marka Hospitality.
Dubai-listed Marka said it plans to open 17 additional Morelli’s Gelato outlets in the Middle East and North Africa region by 2020, including new markets like Lebanon, Egypt, Oman and Qatar. One of the new outlets set to open will be located in Dubai’s Mall of the Emirates.
“Morelli’s Gelato is an important addition to Marka’s hospitality portfolio. It is a renowned and profitable brand with a solid growth trajectory and an experienced and entrepreneurial management team. Morelli’s has an enviable operational and financial reputation and is a perfect fit with Marka’s next phase of growth and expansion,” Nick Peel, chief executive of Marka, said in a statement.
Morelli’s also has a presence in the US, Monaco, Georgia, Malaysia, Philippines and Gabon, according to its website. It offers gelato ice-cream, sundaes, Kilimanjaro coffee, milkshakes, frappes and cakes.
Acquisitions in the UAE food and beverage industry is an emerging trend. In May, Marka bought restaurant chain Reem Al Bawadi for Dh315 million, and last month, Dubai-based investment bank Audacia Capital acquired a 30 per cent stake in Al Safadi, a restaurant chain serving Lebanese cuisine. More recently, Al Masah Capital’s food and beverage unit, Diamond Lifestyle, bought Al Faris Restaurant, the owner of the Johnny Rockets franchise in the UAE and Oman.
“Over next five years, consumer food service is expected to add over 15 billion dirhams in value sales growing by an average 6 per cent annually. To capitalise on projected growth, companies are increasingly turning to acquisitions as the availability of prime locations is low and entry barriers for new developments are high,” said Nikola Kosutic, research manager at the research firm Euromonitor International.
Marka’s shares were down 1.54 per cent from the previous closing to Dh1.28 on Wednesday, according to the Dubai Financial Market (DFM) website.
