MANILA, Philippines - Jollibee Foods Corp. (JFC) is divesting its franchise for Korean coffee and gelato chain Caffe Ti-Amo for P20 million, as it prepares for its new businesses in China and southeast Asia.
In a disclosure to the Philippine Stock Exchange, Jollibee said its subsidiary Coffeetap Corp. agreed to sell the assets of the coffee chain to CafeFrance Corp. The sale will be completed on November 30.
CafeFrance, a subsidiary of listed firm Euro-Med Laboratories, will also become the master franchisee of Caffe Ti-Amo in the Philippines. CafeFrance is the same company that acquired Delifrance from another Jollibee subsidiary, Fresh N' Famous Foods Inc. on December 31, 2010.
There are currently 2 branches of Caffe Ti-Amo, a Korean coffee and gelato chain. The company said average sales per store has more than doubled since Jollibee became involved in the Caffe Ti-Amo franchise in May 2010.
"JFC's divestment of its 'Caffe Ti-Amo' business is in anticipation of the commencement of new businesses, San Pin Wang in Guang Xi Province in the People's Republic of China, and the joint venture with Viet Thai International Joint Stock Company in Vietnam and other parts of Southeast Asia," the company said.
JFC's chief financial officer Ysmael V. Baysa said the divestment of the Caffe Ti-Amo business will not have a material impact on the company's profit.
Meanwhile, Jollibee Worldwide Pte. Ltd. (JWPL) is formalizing its joint venture with Guangxi Zong Kai Food and Beverage Investment Co. Ltd. (GZK) for the popular Chinese fast food chain San Pin Wang, which was announced last year. JWPL will own 55% of the business, while GZK will own 45%.
"JWPL and GZK have been taking steps to restructure San Pin Wang's legal entities that will culminate in the formalization of this joint venture. Based on the status of this restructuring, this joint venture will likely be formalized in the next few months," the company said.
GZK operates San Pin Wang, a fast food chain serving Chinese dishes, including low-priced beef noodles. It has 34 stores in Nanning City and Liuzhou in the southern Chinese province of Guangxi.
Also, Jollibee is still finalizing its joint venture with Viet Thai, which will "establish a platform for operating a portfolio of restaurants in various territories, including Vietnam, Hong Kong, Macau and southern China." The joint venture was expected to have a total of 139 outlets across its brands including Highlands Coffee chain.
Jollibee has been divesting some of its businesses, as it acquires new businesses. In December 2010, it sold off its Delifrance assets. In April 2011, it discontinued the Manong Pepe business, as it acquired Mang Inasal in November 2010.