Jollibee sells coffee and gelato business

Just more than a year after acquiring the master franchise of a Korean restaurant brand, Jollibee Foods Corp., the country's largest owner and operator of fast food chains, has divested of its holdings in Caffe Ti-Amo. JFC told the Philippine Stock Exchange on Tuesday that subsidiary Coffeetap Corp. has entered into an agreement to sell the assets of Caffe Ti-Amo, a coffee and gelato business to CafeFrance Corp. for P20 million to be paid in cash. "In connection with the sale, Coffeetap intends to assign its rights as master franchisee in the Philippines of 'Caffe Ti-Amo' to Cafe France Corp. CafeFrance Corp. is the same company that bought the assets of 'Delifrance' from JFC's subsidiary, Fresh N'Famous Foods Inc. on December 31, 2010," JFC said. In May 2010, JFC announced that it signed a joint venture agreement with local entrepreneurs that gave it entry into the coffee and gelato business. This joint venture became the master franchisee in the Philippines of Caffe Ti-Amo, which has two stores presently. "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, through its wholly-owned subsidiary Jollibee Worldwide Pte. Ltd. signed an agreement to enter into a joint venture with Guangxi Zong Kai Food and Beverage Investment Co. Ltd. on April 30, 2010. As of that date, San Pin Wang had a chain of 34 stores in China. Jollibee through 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. The joint venture will likely be formalized in the next few months. Also, on May 20, 2011, JFC, through JWPL, signed a framework agreement with Viet Thai to establish a platform for owning and operating a portfolio of restaurants in various territories including Vietnam, Hong Kong, Macau and Southern China. In April 2011, JFC also discontinued the operations of its Manong Pepe Business after it had acquired Mang Inasal in November 2010. As of September 30, 2011, JFC operates 1,946 stores in the country and 437 stores abroad. - CMA/OMG, GMA News