Bahrain-based Venture Capital Bank (VCBank) said it has joined hands with Qatar’s Al Sraiya Holding Group and other strategic investors for a strategic partnership with Mado Yasar Dondurma (Mado), Turkey’s largest patisserie and ice-cream café chain franchisor.

Mado, which was established in 1962 as a single ice cream shop, currently employs more than 1,150 staff across more than 310 stores in Turkey and more than 35 locations internationally including Bulgaria, Azerbaijan, Nakhchivan, Cyprus, Iraq, Saudi Arabia, Qatar, the UAE, Kuwait and Bahrain, it said.

In addition to owning the brand’s franchise rights, Mado produces, markets and sells a wide variety of self-branded food products such as ice creams, dairy desserts, sweet pastries, cakes, bakery goods and meals through two primary channels, namely its network of franchise stores and business-to-business (B2B) channels, it added.

"This marks our third major investment in Turkey, a market on which we will continue to focus due to its solid fundamentals and strong economic prospects," said Abdullatif Janahi, the chief executive of VCBank at the signing ceremony held in the presence of Turkish Deputy Prime Minister, Veysi Kaynak, and president of the Union of Chambers and Commodity Exchanges of Turkey M Rifat Hisarciklioglu, in Ankara, Turkey.

"It is among the fastest growing in Europe and provides a strategic position and launch pad for global growth in particular for companies’ active in the country’s food and beverage (F&B) sector, on which we are bullish," he stated.

"The F&B sector is defensive in nature and supported by favourable market dynamics both in Turkey and in neighbouring and global markets. This includes large and young populations in Turkey and other Middle East and North Africa (Mena) markets as well as changing cultural habits that are spurring growth in the cafe and dining culture," observed Al Janahi.

"Having looked extensively at numerous local F&B brands in Turkey, we selected Mado due to the high quality of its products, the strength of its brand as well the global nature of its business," he stated.

“For a number of years, Mado has delivered strong double-digit growth and we look forward to working closely with its highly seasoned management team to build on these foundations through further international expansion,” he added.

Al Janahi said it plans to boost the Turkish patisserie group's presence in the GCC region, followed by other global markets, leveraging its bank’s broad base of shareholders, partners and networks including access to prominent F&B retailers, wholesalers, suppliers and manufacturers on which Mado can capitalise,” he added.

Rashid N Al Kaabi, the vice chairman of Al Sraiya, said: "In partnership with VCBank we are proud to announce this important transaction for our group and our continued efforts to diversify our holdings into key growth markets and segments."

“Our partnership with Mado provides us with exposure to Turkey’s growing economy and in particular its F&B sector, where we see great promise and room for upside potential internationally,” he said.

“With additional resources and support, we expect significant future enhancements and we look forward to working together with Mado to support their strategy for global growth and to ensuring the company meets its vast potential both in Turkey and beyond,” he added.

Mehmet Kanbur, chairman of Mado Group, said the new strategic partnership underscores the strong franchise and brand that its company has built and the ongoing growth prospects for it in both Turkey and international markets.

"Together with VCBank, we especially look forward to expanding our presence in the Middle East, including Saudi Arabia, its biggest market, where demand for the high quality products and dining experiences like those offered by our company continues to grow," he added.-TradeArabia News Service