Jollibee gains control of SuperFoods Group
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Jollibee Foods gained control of the joint venture behind the Highlands Coffee and Pho 24 brands ahead of a plan to list the latter in Vietnam’s stock market.
In a disclosure, the homegrown fastfood giant said its subsidiary JSF Investments Pte. Ltd hiked its stake in the SuperFoods Group to 60%, while its partner Viet Thai International Joint Stock Co. (VTI) reduced its interest to 40% from the previous 50-50 ownership share.
The adjustment was considered a “key step” in their plan to list SuperFoods Group in Vietnam’s equities market by July, 2019 and will allow JFC to include the joint venture in its financial consolidation, the Philippine company said.
The SuperFoods Group owns and operates the brands Highlands Coffee and Pho 24 and is a franchisee of Hard Rock Cafe in Vietnam, Macau and Hong Kong. At end March, it had 216 stores across these three brands.
JFC will 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 to finance the aggressive expansion program of the SuperFoods Group.
In the next three years, the SuperFoods Group plans to open 485 stores, mostly in Vietnam, while expanding the brands through franchising in other parts of Asia and in Australia.
“The local food service company is now present in 17 countries outside the Philippines and plans to enter Malaysia as part of its expansion in Southeast Asia.”
The SuperFoods Group gives JFC presence in four new foreign territories — Indonesia, Cambodia and Australia. The local food service company is now present in 17 countries outside the Philippines and plans to enter Malaysia as part of its expansion in Southeast Asia.
The SuperFoods joint venture is one of the fastest growing businesses in the JFC Group. System wide sales hit $58 million in 2016, up 46% from the prior year, driven by the 73% expansion of Highlands Coffee.
JFC plans to build a “significant” business in Vietnam given its potential to become a large consumer market. Like the Philippines, Vietnam has a high population at 95 million and has enjoyed robust economic growth, which stood at 6.2% last year.
The listed company already owns and operates 84 restaurants under its flagship Jollibee brand in Vietnam at the close of 2016, with sales from these stores rising by an annual 47%.
JFC operates the largest food service network in the Philippines. At end March, it had 2,684 restaurant outlets under the brands Jollibee, Chowking, Greenwich, Red Ribbon, Mang lnasal and Burger King. Abroad, it operated 620 restaurants, including the brands Yonghe King, Hong Zhuang Yuan and Dunkin’ Donuts.
In addition, JFC maintains interest in joint ventures operating 611 stores worldwide. Aside from its interest in SuperFoods, it owns 40% of US chain Smashburger and 48% of 12 Hotpot.
Questions & Answers
Q.Why did Jollibee increase its stake in the SuperFoods Group?
Why did Jollibee increase its stake in the SuperFoods Group?
Jollibee increased its stake as a key step towards listing the SuperFoods Group on Vietnam’s equities market by July 2019. This adjustment also allows JFC to include the joint venture in its financial consolidation.
Q.What are the expansion plans for the SuperFoods Group over the next three years?
What are the expansion plans for the SuperFoods Group over the next three years?
The SuperFoods Group plans to open 485 new stores in the next three years, primarily in Vietnam. They also intend to expand their brands through franchising in other parts of Asia and Australia.
Q.Which specific brands does the SuperFoods Group operate?
Which specific brands does the SuperFoods Group operate?
The SuperFoods Group owns and operates the Highlands Coffee and Pho 24 brands. It also acts as a franchisee for Hard Rock Cafe outlets in Vietnam, Macau, and Hong Kong.
Q.What is the reason behind JFC's focus on growing its business in Vietnam?
What is the reason behind JFC's focus on growing its business in Vietnam?
JFC aims to build a significant business in Vietnam due to its potential as a large consumer market. Vietnam has a high population of 95 million and experienced robust economic growth of 6.2% last year.
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