A stalwart in the Australian food industry will be put up for sale after weighing down its parent company to the tune of more than $12 million last financial year.
Retail Food Group announced its 2024-25 financial results this morning, revealing it had lost $14.9 million – a far cry from the $5.8 million net profit after tax the year before – and that it is looking to sell Brumby’s Bakery.
The group announced in a letter to stakeholders that a divestment process is under way for the bakery chain, but there were ”no guarantees it will result in an acceptable offer”.
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The company plans to focus on expanding other brands under the RFG umbrella, after revealing the long-term decline of the Brumby’s brand had cost the company $12.2 million last year.
Brumby’s opened its first store in Melbourne’s east in 1975 and has hundreds of franchises across Australia and New Zealand.
It was acquired by RFG in 2007.
“Based on a review of our strategic growth pillars, we have announced that we are exploring options for the sale of the Brumby’s Bakery business and are shifting the focus of our company store operations towards Beefy’s Pies and Firehouse Subs to support their rapid expansion,” RFG chief executive Matt Marshall said.
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The group announced in February 2025 it would launch US sandwich brand Firehouse Subs in the Australian market within the next 12 months, with the hope to exceed 165 stores in the long term.
Australia’s largest multi-brand retail food and beverage franchise owner, RFG owns several Aussie chains including Gloria Jeans, Donut King, Beefy’s Pies and Crust Gourmet Pizza.
It also used to run the Michel’s Patisserie brand, but in February announced it was shuttering all stores and converting the remaining cafes in Gloria Jean’s or Donut King outlets.
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