ATLANTA, Dec. 3, 2002 (PRIMEZONE) - Cinnabon(R), Inc., a subsidiary of AFC Enterprises, Inc. (Nasdaq:AFCE), announced it has signed an agreement with Sun-Maid(R) Growers of California to license Cinnabon Cinnamon Bread for manufacture and sale in the grocery channel. Terms of the agreement were not disclosed.
"Our strategy is to take Cinnabon from a single product to a consumer brand," said Chris Elliott, Cinnabon interim president. "Licensing allows us to leverage the power of the Cinnabon name, build our brand, and add to our bottom line very efficiently."
Sun-Maid Raisin Bread is the most widely distributed raisin bread in the U.S., according to Information Resources Inc. Cinnabon is the worldwide leader in the cinnamon roll category.
"We know from brand architecture research that our strategic point of distinction is the emotional bond consumers have with our products," said Steve McMahon Cinnabon chief marketing officer. "Cinnabon Cinnamon Bread has similar characteristics as our core bakery menu items and will translate well to the grocery channel."
Cinnabon Cinnamon Bread is made with familiar ingredients such as Cinnabon cream cheese frosting and the brand's proprietary Makara(TM) cinnamon. The bread will be in test markets second quarter 2003. A full product launch is scheduled for the fourth quarter 2003, pending favorable test results.
The breakfast breads category in the US is a $140 million business and is growing six percent per year," said Mike Boggus, Director of Sales and Marketing for Sun-Maid Licensed Products. "We hope to do for Cinnabon Cinnamon Bread what we've achieved for Sun-Maid in the raisin bread category."
Cinnabon is the worldwide leader in the cinnamon roll bakery category. As of November 3, 2002, the company operated and franchised 603 bakeries worldwide. The bakeries are located in 43 states, Puerto Rico and 17 other countries. Founded in Seattle, Wash., in 1985, Cinnabon bakeries are traditionally located in high-traffic venues such as shopping malls, airports, train stations and travel plazas. The bakeries typically are located in 500- to 1,500-square-foot areas. Cinnabon bakeries have built a reputation for serving fresh, aromatic, oven-hot cinnamon rolls made with premium Indonesian cinnamon and topped with sweet, rich, cream cheese-based frosting. Cinnabon had system-wide sales of approximately $205.5 million in 2001 and can be found on the World Wide Web at www.cinnabon.com.
AFC Enterprises, Inc. is the franchisor and operator of 3,911 restaurants, bakeries and cafes in the United States, Puerto Rico and 28 foreign countries under the brand names Church's Chicken(TM), Popeyes(R) Chicken & Biscuits, Cinnabon(R), Seattle's Best Coffee(R) and Torrefazione Italia(R) Coffee. AFC's primary objective is to be the world's Franchisor of Choice(R) by offering investment opportunities in highly recognizable brands and exceptional franchisee support systems and services. AFC Enterprises had system-wide sales of approximately $2.6 billion in 2001 and can be found on the World Wide Web at http://www.afce.com.
Sun-Maid Growers of California is based in Kingsburg, California. Sun-Maid processes raisins produced by its nearly 1,200 California growers and markets them throughout the United States and around the world. Sun-Maid also distributes and markets a full line of dried fruit products, including apricots, peaches, apples, cranberries, and other dried fruit mixtures and blends. The company reported sales of $221.9 million for the fiscal year ending 2002 for its core business. Sales of fully branded licensed products, including baked goods and confectionery items, account for an additional approximately $100 million at retail. Find out more about Sun-Maid at www.sunmaid.com.
Forward-Looking Statements. Certain statements in this release, and other written or oral statements made by or on behalf of AFC or its brands, are "forward-looking statements" within the meaning of the federal securities laws. Statements regarding future events and developments and our future performance, as well as management's expectations, beliefs, plans, estimates or projections relating to the future, are forward-looking statements within the meaning of these laws. These forward-looking statements are subject to a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are the cost and availability of our principal food products, increased energy costs, labor shortages or increased labor costs, our ability to franchise new units and expand our brands, our and our franchisees' ability to successfully operate existing units and open new units, changes in consumer preferences and demographic trends, competition, general economic, political and regulatory conditions and the risk factors detailed in our Annual Report on Form 10-K for the year ended December 30, 2001 and the other documents we file with the Securities and Exchange Commission. You should not place undue reliance on any forward-looking statements, since those statements speak only as of the date they are made.