Fruitas bounces from pandemic with ice cream, ensaymada

MANILA, Philippines — Listed food stall operator Fruitas Holdings Inc. is boosting tie-ups to offer products beyond its typical fruit juices to counter the pandemic’s impact on its balance sheet.

In a disclosure to the stock exchange on Wednesday, Fruitas Holdings announced sealing a deal to sell locally-made Carmen’s Best Ice Cream and Jim’s Recipe of Malaysia, famous for its sponge cakes and breads, in select locations.

In addition, Fruitas outlets would also soon sell hopia delicacies after the firm signed a supply agreement with Soy & Bean, “one of the oldest Chinese bakeries in Manila,” as well as an unnamed baker of “export-quality ensaymada.”

“Fruitas traces its beginnings from a difficult environment, yet overcame huge obstacles to become the leading food and beverage kiosk operator in the Philippines, and intends to repeat the feat to scale even greater heights emerging from COVID-19 pandemic,” the company said.

“With these additional products, Fruitas believes it will also be able to maximize its vast network of more than 1,000 low-capex, small-footprint stores which no other local foodservice firm currently possess,” it added.

The partnerships appear to be Fruitas’ strategy to look for ways to recover losses at the height of stringent lockdowns from March to June. Quarantines pulled down total sales by more than 50% year-on-year in the first half, sinking the fruit juice company to a net loss of P12.3 million.

That said, Fruitas Holdings has continued to struggle. In July, the retailer unveiled “Babot’s Farm,” a new store concept that evolved from its typical kiosks and targeted to open 10 branches by last month. As September started, the 10 outlets are yet to be established although “almost completed,” according to the firm.

By yearend, Fruitas Holdings has set to open 25 “Babot’s Farm” branches.

“The public trusted us with their investment money through our Initial Public Offering and we continue to aggressively look for opportunities,” Lester Yu, company president and chief executive, was quoted as saying in the statement.

“We will continue to be disciplined as both the retail and food business has changed, requiring new ideas,” Yu said.

On Wednesday, shares in Fruitas Holdings fell 0.85% to close at P1.17 each on the stock exchange.