Dom. Brew, move into food chain

Press, 19 February 1983, Page 18

Dom. Brew, move into food chain

PA Auckland Dominion Breweries. Ltd. has expanded into the food chain business, with a partnership in a chain of medium-priced licensed steak and seafood restaurants.

DB's managing director. Mr J. R. Fletcher, said that DB would acquire 30 per cent of the shares of Auck-land-based Keg Restaurants (N.Z.). Ltd. for an undisclosed sum.

The listed investment company. Chase Corp. Ltd. will also hold 30 per cent. Keg’s New Zealand founder. Mr T. R. Buckley, will hold 30 per cent, with the managing director. Mr D. J. Ritchie, owning the other 10 per cent.

Keg currently operates two medium-priced restaurants in Epsom and Hender-

son. It will open two more soon in Hamilton and Pakuranga and has plans for others in Auckland, and ultimately intends to have a nationwide chain. Its two existing restaurants in Auckland are now serving 160.000 meals a year, he said.

The concept of Keg restaurants was developed in Canada and the company operates some 80 restaurants in North America. The New Zealand company operates under a franchise arrangement with Keg Canada and this will continue. Mr Buckley said the involvement of DB and the Chase Corporation would give the company a new range of skills from the liquor, hotel, and investment fields, and would assist its expansion plans. Mr Fletcher said discus-

sions leading to the acquisition had taken place during some months, and both DB and Chase were satisfied that Keg. already successful in Auckland, had considerable potential. The managing director of the Chase Corp.. Mr C. W. Reynolds said that his company's interest in Keg was the logical extension of the property development role it had been providing Keg. “We are essentially an investment company and our association with Keg to date has convinced us it is placed in the correct segment of the food and restaurant market in New Zealand. It's poised to grow rapidly." DB's main focal competitor. Lion Breweries, operates the Cobb and Company nationwide restaurant chain. It has also opened a Cobb and Company in Sydney.