Luckies make a bid for Lucky Brand
LUCKY BRAND, the Australian-based luxury brand owned by former president Bill Gates, has signed a multi-year deal to sell its products to US-based US food-delivery company Food Network.
The deal is expected to generate between $5 million and $7 million a year in annual sales for Luckies’ US business, which has a market value of about $100 million.
The acquisition is expected by investors to raise around $30 million in cash.LUCKY BUCKS, a food and beverage brand in Australia, has a US-branded franchise of its own, with the Australian brand currently in the process of a $100m expansion.
The company has also launched a new line of products, including its signature “Lucky Buck” branded breakfast cereal, and a range of snacks.
It said it was pleased to be entering into a new strategic partnership with Food Network, a multi billion dollar global brand.
“It is an exciting opportunity for the brand to further expand its presence in the US and to grow our US business globally,” Luckies chief executive officer and co-founder Bill Fitzgerald said.
“Food Network is the perfect partner to complement the existing partnership and we are looking forward to expanding our offerings and our presence in America.”
The deal will see Luckies enter the market with three US franchises and two international franchises, and will create over 20 jobs in the USA.
Lucky Brand is owned by Bill Gates’ wife Melinda and her partner Mark Wozniak.
Food Network has a worldwide network of nearly 200 stores.
The news comes as food and drink giant Coca-Cola is exploring a move into US markets.
A spokesperson said the company was “actively exploring a strategic partnership” with Luckies.
The spokeswoman declined to comment on what the move would mean for Coke.