Paris Baguette to enter Middle Eastern halal market

Paris Baguette, the bakery franchise owned by South Korea's SPC Group, said on Monday it has signed a memorandum of understanding (MOU) with UAE-based Galadari Brothers Group for expanding into the Middle Eastern halal market in Saudi Arabia. 

SPC Group executives are visiting the Middle Eastern country as a member of the business delegation accompanying South Korean President Yoon Suk Yeol during his state visit to Saudi Arabia. The MOU ceremony was held in Fairmont Riyadh. SPC Group President Hur Jin-soo and Chairman of Galadari Brothers Group Mohammed Galadari attended. 

This deal aligns with the SPC Group’s goal of tapping into the $2 trillion global halal market. In June last year, The group broke ground a new factory for halal-certified foodstuffs in Johor Bahru, Malaysia.

Founded in 1961, Galadari Brothers Group is a global conglomerate with media, automotive, and food businesses. The group has operations in the Middle East, including Saudi Arabia and Qatar, as well as in the UK, Australia, and Sri Lanka. Especially, the group has more than 1,000 restaurants in Middle Eastern countries.

SPC Group plans to form a joint venture with Galadari Brothers in next year and open Paris Baguette’s stores in 12 countries in the Middle East and Africa by 2033, including Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, and Bahrain. The products in stores will be supplied in its halal-certified plant in Johor Bahru, Malaysia, which is scheduled for completion next year.

Paris Baguette has been expanding its business overseas since 2004, starting with China. It operates more than 500 stores in 10 countries including the US, France, the UK, Canada, Singapore, Vietnam, Cambodia, Indonesia, and Malaysia. Paris Baguette's overseas sales exceeded 600 billion won ($44.32 million) last year.

Write to Kyeong-je Han at hankyung@hankyung.com