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biz.yahoo.com
Thursday March 6 8:31 AM EDT
Java Centrale Announces 111 Cafe License Agreement in Korea
SACRAMENTO, Calif., March 6 /PRNewswire/ -- Java Centrale Inc announced today that it has signed a licensing agreement with
Land D&C Co., Ltd., a land development and construction company. Land D&C has formed a separate operating company, Java
Centrale Korea Co., Ltd., to develop the cafes and to distribute Java Centrale products at wholesale in Korea. Land D&C Co., Ltd.
will have an exclusive right to own and operate a minimum of 111 Java Centrale cafes and coffee bars under a phased
development schedule over approximately five years. The first three retail cafes scheduled in 1997 will be located in Seoul, and
the remaining locations are expected to be primarily in the cities of Pusan, Taegu, Taejon, Kwangiu and Inchon.
In return for the licensing rights, Land D&C Co., Ltd. there will be a one time licensing fee and ongoing royalties. In addition, Java
Centrale will be the exclusive supplier of coffee under the agreement.
Java Centrale, Inc. president, Gary Nelson, stated that, "The Land D&C Co., Ltd., is a strong Korean company pursuing the
lucrative gourmet coffee industry. By teaming up with Java Centrale, the cafes can be developed very quickly."
Nelson further stated that, "The Korean license is the first venture outside of the United States for Java Centrale, Inc."
Land D&C Co., Ltd. is one of 12 affiliated companies of Land D&C Group whose combined annual sales are in excess of $1
Billion. Land D&C Group's Chairman, Mr. Geun-Bai Gill, has expressed his appreciation to Java Centrale for its efforts in helping
his company to create a gourmet coffee business in Korea. He further expressed his confidence that Java Centrale will be very
successful in his country.
Charlie Cho, Director of Land D&C Group and head of international business development, has informed Java Centrale that Java
Centrale Korea Co., Ltd. will have separate capitalization and its own management team along with the support of its parent Land
D&C Group.
The market for imported coffee in Korea is growing dramatically. Since 1989, coffee imports have increased at more than 100%
per year. The years 1994 and 1995 showed increases of 195% and 142% respectively.
Java Centrale currently franchises 34 cafes and espresso carts nationwide, with new locations scheduled to open in Hermosa
Beach, Long Beach, Placentia and Redondo Beach, California. In addition, there are numerous locations now in the site selection
process across the United States.
The Java Centrale's subsidiary, Paradise Bakery & Cafe currently has a total of 52 cafes, of which 17 are Company-owned and 35
franchises operating in the states of Arizona, California, Colorado, Hawaii, Oklahoma, Oregon, Texas and Washington. New
Paradise Bakery & Cafe locations are scheduled to open in Sacramento, San Diego and San Mateo, California and Honolulu,
Hawaii. SOURCE Java Centrale Inc. |
