URC, Danone join forces for new beverage company

MANILA, Philippines - Snacks and beverage giant Universal Robina Corp. (URC) of the Gokongwei family is joining forces with another big name in the food and beverage industry as it seeks to further strengthen its beverage line in the country.

In a regulatory filing, URC said it has inked a joint venture agreement with Danone Asia Holdings Private Ltd, a manufacturer and supplier of fresh dairy products, water, as well as early life nutrition and medical nutrition products worldwide.

The new company, Danone Universal Robina Beverages Inc., will start manufacturing beverage products next year, the Gokongwei-led firm said.

Danone and URC will each hold 50-percent stake in the joint venture company.

 “Through the joint venture, URC aims to diversify its line of beverage products, increase the sales of its various beverage products and expand its market share in the Philippines,” URC said.

URC, one of the largest branded consumer food and beverage product companies in the Philippines, is behind top brands Jack n’ Jill, Hunt’s, C2, Blend 45, Uno Feeds and Cream All.

It is the market leader in salty snacks, candies, chocolates, and ready-to-drink tea categories in the Philippines.

Danone Asia, meanwhile, is part of multinational corporation Danone Group. The group is behind the Evian brand for its water business.

 “The effectivity of the joint venture agreement is subject to board approvals of both URC and Danone and approval of the terms of related-party agreements to be entered into by the joint venture company,” the snacks and beverage company said.

Aside from continuously adding muscle to its business locally, URC is also embarking to become a major regional player.

URC last July took over the leading biscuit and snack food company in New Zealand for around P26 billion, its largest acquisition to date.

Earlier this year, the company also sealed a partnership with Japan’s largest snack food firm Calbee, another 50-50 joint venture aimed at producing unique and high quality snack products in the Philippines.