London, United Kingdom: Costa Coffee, the UK-based coffee shop company with nearly 4,000 locations in more than 32 global markets, and Alghanim Industries, one of the largest privately-owned companies in the Gulf region, has today announced an expansion of their successful partnership. Moving forward, Alghanim Industries will have development rights to Costa Coffee not just in Kuwait but also in Saudi Arabia, Oman, and Qatar, making Alghanim the largest franchisee by territory. The Costa Coffee-Alghanim partnership has flourished since its 2013 formation, growing to more than 75 stores today. 35 of these shops opened in less than a year, including in top-tier locations such as Al Hamra Tower and Kuwait International Airport. The growth is driven by the companies’ shared commitments to delivering outstanding handcrafted coffee, credible healthy menu choices and exceptional customer service. Costa Coffee and Alghanim Industries have revamped the Kuwait menu to reflect local tastes and preferences, including local specialties, such as the sweet and rich Spanish Latte, in addition to the cardamom–infused Turkish latte, a Middle-Eastern twist on a classic drink. Together both companies have recently introduced a number of sustainability initiatives, switching from plastic to paper straws and offering discounts to those customers who bring a reusable cup into store. In addition, they established a barista training center, arranged pastry collaborations with celebrity chefs, upgraded store design and interiors, and opened a concept store at Al Hamra Tower, where customers can enjoy specialty coffees and an expanded food offer. Put together, these forward-looking strategies will power Costa-Alghanim’s expansion efforts in Saudi Arabia, Oman, and Qatar. “Three traits are critical to success in the food and beverage sector,” said Kutayba Y. Alghanim, Executive Chairman, Alghanim Industries. “You must have a patient, long-term outlook, you must act decisively when opportunity arises, and above all, you must put the customer at the heart of your business. We share these values with Costa Coffee, a world-class brand, which will grow even stronger following its acquisition by Coca-Cola. These shared values are the foundation of our work together, and the reason we look forward to an enduring, prosperous partnership.” “Coffee is a Middle Eastern creation. As far as historians can tell, drinking coffee traces back to the 15th century in our region,” said Omar K. Alghanim, Group CEO, Alghanim Industries. “It comes as no surprise that most people in this region have a deep appreciation for good coffee. And that’s why we’re thrilled to grow with Costa Coffee, and to build on our success in Kuwait. We’re ready to hit the ground running in Saudi Arabia, Oman, and Qatar, bringing world-class hand crafted coffee to some of the most sophisticated consumers in the world.” “Today marks another exciting new chapter for Costa Coffee in the Middle East”, said Dominic Paul, CEO of Costa Coffee. “Our vision is to inspire the world to love great coffee and in Alghanim Industries we have an innovative and exciting partner who will help us unlock the next phase of growth in the Middle East, bringing further investment and job creation across a number of countries where demand for Costa Coffee is growing.” Alongside Costa Coffee, Alghanim Industries has forged successful partnerships with American quick-service restaurant brands Wendy’s (2015) and Slim Chickens (2017). Alghanim Industries expects to open its first store outside Kuwait in Saudi Arabia by the fourth quarter of 2019. For any questions and inquiries, please contact the Alghanim Industries team at costacoffee.info@alghanim.com. -Ends- About Alghanim Alghanim Industries is one of the largest, privately-owned companies in the MENA region. Founded at the turn of the century, in Kuwait, the company today employs more than 15,000 people in 30 businesses across 40 countries in the Middle East, North Africa, Eastern Europe and Asia. Alghanim Industries is a market leader in almost every major sector of its operations, which include: engineering, retail, automotive sales and service, insulation and pre-engineered steel building structures, logistics and warehousing, fast moving consumer goods, food & beverage, office automation, advertising, insurance, consumer credit and travel. The company is actively growing its brand portfolio, with a focus on top-tier global partners. Among them: Avis, British Airways, British Petroleum, Cathay Pacific, Daewoo, Honda, Saint-Gobain and Toshiba. Additionally, Alghanim Industries has created a number of successful regional businesses, including X-cite (consumer electronics), and Safat Home (lifestyle and home furniture). About Costa Coffee Founded in London by Italian brothers Sergio and Bruno Costa in 1971, Costa Coffee operates over 2,600+ coffee shops in the UK and more than 1,300+ in 32 international markets we are the fastest growing coffee shop business in the UK and are proud to be the UK’s favourite coffee shop, having been awarded “Best Branded Coffee Shop Chain in the UK and Ireland" by Allegra Strategies for nine years running (2010, 2011, 2012, 2013, 2014, 2015, 2016, 2017, 2018). Making a positive contribution to the communities we are part of is extremely important to us, both in the UK and across the world. That’s why we established The Costa Foundation, a registered charity with the aim of improving the life chances of children in coffee growing communities by helping them access a safe, quality education. So far, the Costa Foundation has funded over 80 school projects and changed the lives of more than 75,000 children. We also have a UK-wide Community Programme, which enables our teams to volunteer their time to good causes locally and to invite community groups to make use of our welcoming space in store. In 2011 Costa Coffee purchased Coffee Nation rebranding it to Costa Express. Today, Costa Express operates over 8,500+ coffee bars in five international markets and proudly serves the same famous Mocha Italia blend found in stores, combined with fresh milk to create a delicious and warming cup of coffee on the go. © Press Release 2019

Mohammad Hamad Al Mana Group has entered into an agreement with Alghanim Industries, granting them the sub-franchise rights of Wendy’s restaurants in Qatar. The companies are two of the largest privately-owned companies in the Mena region, according to a statement. The agreement will enable Mohammad Hamad Al Mana Group to open a series of Wendy’s restaurants in Qatar, with the first restaurant opening today (June 1) in Doha, at Andalus Petrol Station (C-Ring Road). The employees at Wendy’s Qatar received a comprehensive training programme equipping them with the required skills and expertise to provide an exceptional dining experience to customers in Qatar. Abdel Rahman al-Mana, managing director of Mohammad Hamad Al Mana Group said: “We are pleased to have this opportunity with Wendy’s, which is one of the leading restaurant companies in the world, and renowned for its high-quality food and service. We would like to reiterate our commitment to bringing an exciting new restaurant brand to Qatar, and we are confident that this new agreement will add value to the food market in the country.” Adnan Zahra, head of Wendy’s Qatar said: “Wendy’s is not just a fast food restaurant, it is a symbol of freshness and high-quality products. The American restaurant brand is a global system of more than 6,600 restaurants across the world, and Qatar represents a new dynamic market.” Mohammad Hamad Al Mana Group is one of the leading business conglomerates in Qatar that deals with different sectors including automobiles, real estate, public services as well as food and beverage. Alghanim Industries, Wendy’s regional master franchisee, is one of the largest privately-owned companies in the Mena region. Founded over a century ago, in Kuwait, the company today employs more than 15,000 people in 30 businesses across 40 countries in the Middle East, North Africa, Eastern Europe and Asia.

Global burger chain Wendy’s, which has 17 restaurants currently operational in the Middle East and North Africa region, is planning to open 150 outlets over the next 10 years. The expansion is being carried out by regional partner Kuwait-based Al Ghanim Industries, which sealed a franchise deal for the brand in February last year. Al Ghanim acquired the MENA rights for Wendy’s restaurants from Alamar Foods, a Saudi-based company owned jointly by Al Jammaz Group and the Carlyle Group for an undisclosed sum. The Kuwaiti company spent the last year refurbishing stores, retraining staff and “getting the food right” and is now setting its sights on rapid growth, according to Al Ghanim’s vice president of food and beverage Phil Broad. “When we took it over, although the fundamentals of the brand are very strong, here they opened up in locations you wouldn’t know existed and they hadn’t been operated particularly well – at least not up to the Al Ghanim standards,” he said. “And so we looked at the whole team – everyone has gone through a new induction programme to understand what they are doing, we reviewed all the pay rates, we put in new uniforms etc. “We also looked at our products. At the start we were viewed as being expensive, but now we have introduced many value propositions, improved quality and also launched breakfast – which has proved very popular. “Fundamentally we have reached a stage where we have turned the business around and are now in a position where we want to be. Now that we have got it right, we will focus on growth,” he explained. According to Broad, the impact of the changes have already been felt. The existing stores have all experienced “positive growth” in the market, which they were not seeing in the past. Currently, the brand’s 17 regional restaurants are in the UAE, but Wendy’s plans to enter Kuwait this year and Saudi Arabia next year. There are also plans to open a new high-profile store in Dubai in the near future. “It’s more about the visibility and the location – which is almost like free marketing for us. We are not going to move our prices. It is about bringing more people through our doors now because they haven’t seen us and about positioning the brand in the right way. All our competitors have that,” Broad said. Despite growing competition – there are estimated to be nearly 50 burger store operators in Dubai alone – Broad said Wendy’s had the advantages of size and scale and could offer value for its products. “In terms of our pricing strategy, I don’t think we will go lower – it’s a big risk for our business.” He is also confident that the food and beverage market will emerge from the current slowdown in the economy. “I think you have got to be very optimistic in the F&B business because there are have been ups and downs ever since food was invented. And I have seen downturns – I was in Dubai in 2008. People who did a very good job at that time and offered value are still here today. People who were in it for a quick buck and who thought it’s very easy to make money have gone. “And so we are in it for the long term. If you get the foundation right and make sure the model works, you can get through the ups and downs,” he added.