Jollibee sells Korean brand Caffe Ti-Amo

MANILA, Philippines - Jollibee Foods Corp. (JFC) has agreed to sell to Café France Corp. its franchise of Korean coffee and gelato brand Caffe Ti-Amo for P20 million as it gears up for fresh investments in China and Southeast Asia.

In a disclosure to the Philippine Stock Exchange yesterday, JFC said Café France, which will now become the master franchisee of Caffe Ti-Amo in the Philippines, is the same company that bought the assets of Delifrance from JFC unit Fresh N’ Famous Foods Inc. late last year.

The sale of Caffe Ti Amo assets to Café France, a subsidiary of listed firm Euro-Med Laboratories, is expected to be completed on Nov. 30, JFC said.

There are currently two Caffe Ti-Amo branches in the country. Average sales per store has more than doubled since JFC became involved in the franchise in May 2010.

“JFC’s divestment of its Caffe Ti-Amo 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 Thai International Joint Stock Co. in Vietnam and other parts of Southeast Asia,” JFC said.

Ysmael V. Baysa, chief financial officer at JFC, said the divestment of the Caffe Ti-Amo business would not have a material impact on the company’s bottom line.

JFC, through wholly-owned unit Jollibee Worldwide Pte. Ltd. (JWPL), is finalizing a joint venture with Guangxi Zong Kai Food and Beverage Investment Co. Ltd. to run San Pin Wang, a popular fastfood chain serving Chinese dishes including low-priced beef noodles.

San Pin Wang has 34 stores in Nanning City and Liuzhou in the southern Chinese province of Guangxi.

Under the plan, JWPL will own 55 percent while Guangzi will own the remaining 45 percent of the joint venture.

Aside from this, JWPL, together with Viet Thai International, has been conducting due diligence and moving to acquire new businesses in a bid to operate a portfolio of restaurants in various territories including Vietnam, Hong Kong, Macau and Southern China. The joint venture is expected to have total of 139 outlets across its brands which included Highlands Coffee, a coffee shop and packaged coffee business.

JFC had been divesting some of its businesses even as it continued to acquire new ones. In December 2010, JFC exited from its Delifrance business and sold its assets. Last April, JFC discontinued the operations of the carenderia-style Manong Pepe business following the acquisition of grilled chicken chain Mang Inasal in November 2010.

The JFC Group of Companies operates the country’s largest fastfood network with a total of total of 1,946 stores – Jollibee (733), Chowking (393), Greenwich (208), Red Ribbon (210), Caffe Ti-Amo (2), and Mang Inasal (400).

Overseas, the group is operating 437 stores with Yonghe King (240), Hong Zhuang Yuan (52), Jollibee (70), Red Ribbon in US (36), and Chowking (39).

Combined, the group operates a total of 2,383 stores worldwide.