Embattled Australian food brand Retail Food Group Limited (ASX: RFG) has pinned its hopes on a wholesale push under the Di Bella coffee brand to boost its troubled franchise operations, according to an article in The Financial Review.
According to the report, Retail Food Group has plans to bring together four wholesaling coffee brands – Di Bella Australia and US, Roasting Australia and Evolution Roasters to increase operational diversity and play to the coffee-roasting market.
Retail Food Group's shares have bottomed out in the last 12 months, down 90% from its $4.52 share price at this time last year to land at a July 10 close of 45c per share – plagued by reports franchisees were mistreated.
But despite its cheap price, it is hard to hold too much confidence in the stock just yet given its debt problems, and those looking for bargain basement prices should perhaps do some due diligence on the likes of beaten down shares like sports analytics company Catapult Group International Ltd (ASX: CAT) or private hospital owner Ramsay Health Care Limited (ASX: RHC).
