BASKIN ROBBINS AUSTRALIA - ICE CREAM PRICE NOW UP 30% IN TWO MONTHS!

ALLIED BRANDS ISSUED THE MEMO/DIRECTIVE ON DECEMBER 30, 2008.

FOR THE FIRST TIME IN HISTORY, FRANCHISEES ARE NOW BEING FORCED TO ASSUME THE FULL RISK OF CURRENCY FLUCTUATIONS FOR BASKIN ROBBINS PRODUCT SOURCED FROM AMERICA.

THIS WAS NOT THE CASE WHEN BASKIN ROBBINS INTERNATIONAL DISTRIBUTED THE ICE CREAM TO AUSTRALIA.  THIS IS ONLY NOW THE CASE WITH ALLIED BRANDS LTD.

THIS ACTION WILL HAVE THE AFFECT OF CLOSING AT LEAST 1/2 OF THE CURRENT NUMBER OF BASKIN ROBBINS STORES IN AUSTRALIA THAT ARE ONLY MARGINALLY PROFITABLE NOW.  AND ULTIMATELY WHO WANTS TO BUY A BUSINESS WHERE YOUR FORCED, SOLE SOURCE OF PRODUCT HAS A PRICE THAT FLUCTUATES FROM MONTH TO MONTH UNLIKE ANY OF YOUR COMPETITORS?

IT SHOULD ALSO BE NOTED THAT ALLIED BRANDS LTD CONTINUES TO PAY A DIVIDEND TO THEIR SHAREHOLDERS (MUCH OF THE STOCK IS HELD BY MANAGEMENT ANYWAY).