Prepared Foods September 19, 2005 eNewsletter
Poore Brothers Inc. announced it has signed a licensing agreement with Panda Restaurant Group Inc. for the development, manufacture and sale of snack food products under the Panda Express brand name.
Thomas W. Freeze, Poore Brothers' president and chief executive officer, commented, "We're very excited about the licensing partnership with Panda Restaurant Group. We share a common enthusiasm for the rapidly growing Asian food market. Panda Express is recognized as the nation's leader in Chinese quick-service restaurants and as an innovator of fresh, new Chinese taste sensations. We believe we can develop a variety of salted snack products with unique flavor profiles and textures which leverage the popular recipes used in Panda Express restaurants."
"We are very enthusiastic about our new partnership with Poore Brothers," commented Tom Davin, president and chief operating officer of Panda Restaurant Group. "Their innovative brand marketing and product development capabilities, along with access to a broad distribution network make them an ideal partner for us as Panda Express continues its rapid expansion nationwide. Our guests trust our reputation and will be open to trying new things."
Poore Brothers plans to develop product prototypes in conjunction with Panda Restaurant Group, and thereafter conduct concept, product and consumer tests on a variety of snack food products. Currently, Poore Brothers plans to commence market testing some of these products under the Panda Express brand name during the first half of 2006. The agreement provides for an initial test market term after which the company may exercise an option for an additional five years with a renewal term thereafter. Panda Restaurant Group has granted Poore Brothers exclusive Panda Express brand licensing rights for certain salted snack food categories. In addition, the parties have agreed to evaluate having the products sold at Panda Express restaurants nationwide. Other terms of the agreement were not disclosed.
"We believe that Panda Express is an excellent fit for our diversified line of salted snack foods, and is continued evidence of our commitment to innovation and to building a family of Intensely Different national food brands," concluded Freeze.