BOUCHERVILLE, QUÉBEC, Apr. 13, 2015 /CNW/ - Colabor Group Inc. (TSX:GCL) ("Colabor" or the "Corporation") today announced the early renewal and extension of its long-term distribution and supply agreement (the "Agreement") with Cara Operations Limited (TSX:CAO) ("Cara"), Canada's largest full-service restaurant company and the third largest restaurant operator in the country, based on 2013 sales. The Agreement, which calls for Colabor to supply Cara brands in Ontario and Quebec, extends the long standing relationship through the end of 2022 and provides Colabor with the opportunity to supply restaurants operating under any new brands which may be acquired or developed by Cara, or any of its affiliates, in Ontario and Quebec.
"Colabor is proud to further extend its solid, enduring relationship with Cara, a fast-growing company with highly recognized brands and a proven business model. The renewal of this Agreement attests to Colabor's ability to provide a comprehensive product and service offering in a highly competitive market. More importantly, we have broadened the scope of the relationship by including the supply of additional well-known brands, while also allowing Colabor to further grow its business volume should Cara expand its reach in our existing markets," said Claude Gariépy, President and Chief Executive Officer of Colabor.
"Cara is excited to continue our long standing partnership with Colabor. Our new Agreement will provide value to our Franchisees while ensuring a high level of service is maintained," said Bill Gregson, Chief Executive Officer of Cara.
Colabor is a distributor and wholesaler of food and non-food products serving the foodservice market (cafeterias, restaurants, hotels, restaurant chains) in Québec, Ontario and the Atlantic provinces, as well as the retail market (grocery stores and convenience stores).
Cara is Canada's largest full-service restaurant company and third largest restaurant operator based on 2013 sales. The Company is over 130 years old and operates some of the most recognized brands in the country, including Swiss Chalet Rotisserie & Grill®, Harvey's®, Milestones Grill & Bar®, Montana's BBQ & Bar™, Kelsey's ®, East Side Mario's®, Casey's®, The Landing Group™, Fionn MacCool's®, D'Arcy McGee's®, Paddy Flaherty's®, Tir nan Óg® and Bier Markt®. As at December 30, 2014, Cara had 837 restaurants across Canada, 89% of which are operated by franchisees. Cara is a consolidator of brands in the restaurant industry and currently has a portfolio of 10 distinctive brands, including iconic brands that resonate with Canadians.
This news release contains certain statements that may be deemed forward-looking statements reflecting the opinions or current expectations of Colabor Group Inc. concerning its performance and business operations and future events. These statements are subject to risks, uncertainties and assumptions and are not guarantees of future performance and actual results, realities, or events may differ materially. Except as required by law, the Corporation undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates, or opinions or other factors should change.