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Formation of Joint Venture to Accelerate Growth of KFC Franchise Portfolio in East Africa
Vivo Energy plc
(Incorporated in England and Wales)
(Registration number: 11250655)
(Share code: VVO)
LEI: 213800TR7V9QN896AU56
ISIN: GB00BDGT2M75
20 June 2019
Vivo Energy plc
LSE:VVO / JSE:VVO
Formation of Joint Venture to Accelerate Growth of KFC Franchise
Portfolio in East Africa
• Vivo Energy has agreed to form a joint venture with Kuku Foods East
Africa Holdings, the owner of KFC franchises in East Africa
• The joint venture will accelerate growth of Kuku Foods’ current KFC
franchise portfolio of 30 restaurants in Kenya, Uganda and Rwanda
Vivo Energy plc (Vivo Energy), the pan-African retailer and distributor of Shell and Engen-branded
fuels and lubricants, has agreed to form a non-fuel joint venture to accelerate the roll-out of KFC
restaurants in Kenya, Uganda and Rwanda.
The 50:50 joint venture will manage and operate the restaurants in the three markets on behalf of
Kuku Foods East Africa Holdings (Kuku Foods), who will remain the local KFC franchisee. Completion
of this transaction is subject to standard legal agreements and regulatory and competition authority
approval.
The restaurants, 22 in Kenya and 8 in Uganda, are located in shopping malls, city centre locations, and
service stations. Kuku Foods plans to open its first KFC restaurant in Rwanda in 2019.
The joint venture will enable a significant increase in the number of KFC restaurants in the portfolio
in the coming years. It is envisaged that many of the new restaurants will be opened at Vivo Energy’s
network of service stations across Kenya, Uganda and Rwanda, which leverages Vivo Energy’s retail
footprint, with more countries to be considered in the future, based on market opportunities.
Commenting on the transaction, Christian Chammas, CEO of Vivo Energy, said: “We are
delighted to be partnering with Kuku Foods to replicate the KFC joint venture model we pioneered
in Botswana and Côte d’Ivoire. Kuku Foods shares our ambition to invest in order to grow the
number of restaurants and give more African customers access to the internationally renowned KFC
brand. This partnership further demonstrates our ambition to continue to offer more convenience to
satisfy the evolving needs of our growing number of African customers.”
Ends
Notes to editors:
Media contacts: Investor contact:
Vivo Energy plc Vivo Energy plc
Rob Foyle, Head of Communications Giles Blackham, Head of Investor Relations
+44 7715 036 407 +44 20 3034 3735
rob.foyle@vivoenergy.com giles.blackham@vivoenergy.com
Tulchan Communications
Martin Robinson, Suniti Chauhan
+44 20 7353 4200
vivoenergy@tulchangroup.com
JSE Sponsor: J.P. Morgan Equities South Africa (Pty) Ltd
About Vivo Energy plc (Vivo Energy):
Vivo Energy operates and markets its products in countries across North, West, East and Southern Africa.
The Group has a network of over 2,100 service stations in 23 countries operating under the Shell and
Engen brands and exports lubricants to a number of other African countries. Its retail offering includes
fuels, lubricants, card services, shops, restaurants and other non-fuel services. It provides fuels, lubricants
and liquefied petroleum gas (LPG) to business customers across a range of sectors including marine, mining,
construction, power, transport, and manufacturing. Jet fuel is sold to customers under the Vitol Aviation
brand.
The Company employs around 2,700 people and has access to over 1,000,000 cubic metres of fuel storage
capacity. The Group’s joint venture, Shell and Vivo Lubricants B.V., sources, blends, packages and supplies
Shell-branded lubricants at plants in six countries.
For more information about Vivo Energy, please visit www.vivoenergy.com
About Kuku Foods East Africa Holdings Limited (Kuku Foods):
Kuku Foods is KFC’s East Africa franchisee in Kenya, Uganda and Tanzania. It was established in 2011 in
Kenya, when it opened its first KFC Restaurant in Nairobi at Junction Mall. The business has expanded over
the last eight years to 35 restaurants across East Africa, having twenty-two in Kenya, eight in Uganda and
five in Tanzania. (Kuku Foods in Tanzania is not part of this transaction.) In 2019, Kuku Foods will be
opening its first restaurant in Rwanda and continues with its expansion drive in Kenya and Uganda. Upon
formation of the joint venture, Kuku Foods will retain ownership of the local KFC franchises.
The company has achieved numerous awards and accolades including Delivery Operator of the Year 2018,
Franchisee of the Year 2016 and KFC in Kenya was voted the most loved fast food brand in the 2015
coveted Taste Awards, People’s Choice category.
Its success in East Africa is attributed to a strong local management team and skilled workforce who are
qualified and dedicated to providing outstanding customer service, interacting with customers in a
meaningful way and helping the company grow. Kuku Foods employs over 1,000 well-trained team
members at both its restaurants and head office level across the region. It continuously invests in developing
its people and provides numerous learning and growth opportunities for each of them.
Forward-looking statements
This announcement includes forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties,
many of which are beyond the Company’s control and all of which are based on the Directors’ current beliefs and expectations about future events.
Forward-looking statements are sometimes identified by the use of forward-looking terminology such as: “believe”, “expects”, “may”, “will”, “could”,
“should”, “shall”, “risk”, “intends”, “estimates”, “aims”, “plans”, “predicts”, “continues”, “assumes”, “positioned”, “anticipates” or “targets” or the
negative thereof, other variations thereon or comparable terminology. These forward-looking statements include all matters that are not historical
facts. They appear in a number of places throughout this report and include statements regarding the intentions, beliefs or current expectations of
the Directors or the Group concerning, among other things, the future results of operations, financial condition, prospects, growth, strategies of the
Group and the industry in which it operates.
No assurance can be given that such future results will be achieved; actual events or results may differ materially as a result of risks and uncertainties
facing the Group. Such risks and uncertainties could cause actual results to vary materially from the future results indicated, expressed, or implied
in such forward-looking statements.
Such forward-looking statements contained in this report speak only as of the date of this report. The Company and the Directors expressly disclaim
any obligation or undertaking to update these forward-looking statements contained in the document to reflect any change in their expectations or
any change in events, conditions, or circumstances on which such statements are based, unless required to do so by applicable law.
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