Neo Group buys over bakery chain PrimaDeli’s operations for undisclosed sum

[SINGAPORE] Caterer Neo Group has bought over the business operations of home-grown bakery chain PrimaDeli from Prima Food for an undisclosed sum.

Established in 1992, PrimaDeli is Singapore’s first bakery franchise and the longest-running food franchise in the Republic, according to its website. PrimaDeli is managed by Prima Food, the food-manufacturing arm of flour supplier Prima Ltd.

Neo Group did not acquire any shares from Prima Food.

In response to queries from The Business Times, Prima Food’s executive director Tony Loke said that it was “timely” for the group to “exit the downstream industry”, having “accomplished PrimaDeli’s mission to transform and upgrade the local bakery industry”.  (* see amendment note below) 

He added that Prima Ltd will concentrate on further developing its upstream flour-milling business to better serve the local flour-based industry.  (* see amendment note below) 

In a separate joint media statement on Tuesday (Jun 10), Neo Group and PrimaDeli said: “This strategic move heralds a new era of growth and innovation for Singapore’s first home-grown bakery franchise.”

PrimaDeli will now be fully operated by Neo Group Bakery, a new business entity under Neo Group that was created to oversee the group’s bakery-related businesses.

PrimaDeli’s outlets will continue to operate under its existing brand, with all its employees to be retained by Neo Group Bakery.

Neo Group Bakery will look for more strategic partners and franchisees to grow the PrimaDeli brand. It will also continue to maintain partnerships with existing franchisees of PrimaDeli.

Said both parties: “This transition offers a unique opportunity to blend PrimaDeli’s established brand equity with Neo Group Bakery’s innovative approach and operational excellence, delivering an even more enriching experience for our customers.”

George Lim, general manager of PrimaDeli, noted: “We believe Neo Group Bakery is well-positioned to elevate PrimaDeli to greater heights while preserving its legacy as Singapore’s pioneering bakery franchise brand.”

He added that he was confident PrimaDeli would further strengthen its offerings and presence with Neo Group’s “expertise, robust infrastructure and cutting-edge technology”.

Sally Liew, executive director of Neo Group, said: “We are eager to build upon this strong foundation and drive PrimaDeli’s growth in the years ahead, ensuring it remains a cherished part of celebrations and daily treats across Singapore.”

Neo Group was delisted from the Singapore Exchange in June 2021. The group has an extensive portfolio of catering brands, including Neo Garden, How’s Catering and Chilli Manis. It also operates quick-service and restaurant dining concepts, with more than 20 retail outlets in Singapore.

*Amendment note: Prima has clarified that Loke was referring to Prima Ltd as a group in his statement, instead of the subsidiary Prima Food.