Philippine fastfood giant Jollibee Foods Corp (JFC), and its partner Viet Thai International Joint Stock Company (VTI), have completed a key step in their plan to list their joint venture company SuperFoods Group on Vietnam’s Stock Exchange.
This will adjust the ownership interest in the SuperFoods Group to 60 per cent JFC and 40 per cent VTI from its previous 50-50 ownership share. This step is in line with the partners’ agreement dated November 18, 2016 that was disclosed to the Philippine Stock Exchange on the same date to make SuperFoods a public company by July, 2019.
SuperFoods is a wholly-owned subsidiary of Jollibee’s JSF Investments Pte Ltd (JSF), and VTI, which has business mostly in the Socialist Republic of Vietnam.
The SuperFoods Group owns and operates the brands Highlands Coffee and Pho 24 and is a franchisee of Hard Rock Café in Vietnam, Macau, and Hong Kong.
SuperFoods Group aims to offer Asian consumers high quality coffee and café experience at affordable prices through the Highlands Coffee shops and the Highlands Coffee packaged products. It also plans to serve consumers in Asia and key cities in the world high quality and healthy Vietnamese food at affordable prices through the Pho 24 brand.
As of March 31, 2017, Highlands Coffee had 180 outlets, Pho 24 had 33 outlets and Hard Rock Café had three outlets. Highlands Coffee serves Vietnamese coffee and light meals in trendy coffee shops. It also sells packaged coffee through retail outlets. Pho 24 serves traditional Vietnamese dish with rice noodles as its core products.
For the next three years, the SuperFoods Group plans to open 485 stores, mostly in Vietnam. It also plans to expand the brands through franchising in other parts of Asia and in Australia.
Highlands Coffee currently has presence in Vietnam (164 stores) and the Philippines (16) while Pho 24 has presence in Vietnam (16), Indonesia (13), Cambodia (2), Korea (1), and Australia (1).
“To help fund the SuperFoods’ expansion plans, Jollibee Foods Corporation, will henceforth take the lead in the capital raising activities for the joint venture and will work with various financial institutions in Vietnam and other parts of Asia in this undertaking,” Jollibee added.
The SuperFoods joint venture, which generated system wide sales of $58 million in 2016, is one of the fastest growing businesses in the JFC Group, growing by 46 per cent in 2016 with Highlands Coffee growing by 73 per cent over the same period in the previous year.
As owner of 60 per cent of the SuperFoods Group, JFC will henceforth, include the SuperFoods Group in its financial consolidation.
Jollibee’s last trading price on the Philippine bourse increased 0.95 per cent or P2.00 to close at P213.00 per share on Thursday (May 11).