Philippine’s homegrown fast food giant Jollibee Foods Corp (JFC) said on Thursday that its subsidiary JSF Investments Pte. Ltd has hiked its stakes in SuperFoods Group to 60 percent.
The 10 percent increase from its previous 50-50 ownership share comes from its partner in the joint venture, Viet Thai International Joint Stock Co. (VTI).
This move lies in line with the agreement dated back on November 18, 2016, which will allow JFC to include the joint venture in its financial consolidation and in turn facilitate the listing of SuperFoods Group on Vietnam’s equities market by July 2019.
“To help fund the SuperFoods’ expansion plans, Jollibee Foods Corporation will henceforth take the lead in the capital raising activities of the joint venture and will work with various financial institutions in Vietnam and other parts of Asia in this undertaking,” Jollibee said in a statement.
SuperFoods is a wholly-owned subsidiary of Jollibee’s JSF Investments Pte Ltd (JSF), and Viet Thai International Joint Stock Co. (VTI) with most of its businesses in Vietnam.
The SuperFoods Group owns and operates the brands Highlands Coffee and Vietnamese noodle house Pho 24, as well as the Hard Rock Cafe franchise shops in Vietnam, Macau, and Hong Kong. At the end of March, these three brands amount for a total of 216 stores with its presence across 17 countries outside the Philippines, including Indonesia, Cambodia, and Australia.
In the next three years, the SuperFoods Group plans to open another 485 stores, mostly in Vietnam, while expanding the brands through franchising in other parts of Asia and in Australia. The company also plans to enter Malaysia as part of its expansion in Southeast Asia.
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 reached a 6.2 percent growth last year.
The SuperFoods joint venture is one of its fastest-growing businesses, with its sales reaching US$58 million in 2016, that is up to 46 percent from the prior year, driven by the 73 percent expansion of the Highlands Coffee.
JFC operates the largest foodservice network in the Philippines. At the end of March, it had 2,684 restaurant outlets under the brands Jollibee, Chowking, Greenwich, Burger King, and Mang Inasal. Abroad, it operated 620 restaurants including the brands Yonghe King, Hong Zhuang Yuan, and Dunkin’ Donuts.
Aside from its interest in SuperFoods, it also has 40 percent ownership of US chain Smashburger and 48 percent of 12 Hotpot.
This news is published on Reuters.