Gokongwei-led Universal Robina Corp. has entered into a partnership with European food and beverage manufacturer Danone to set up a beverage production and distribution business in the Philippines.
In a disclosure to the Philippine Stock Exchange on Thursday, URC said it had signed a joint venture agreement with Danone Asia Holdings Private Ltd. for purposes of manufacturing, producing and distributing beverage products in the Philippines.
They agreed to set up an equally owned company called Danone Universal Robina Beverages Inc., which is expected to start commercial operations by 2015. The new company has an initial paid-in capital of P266 million.
“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,” the company said.
The deal is subject to respective 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.
Danone Asia Holdings manufactures and supplies fresh dairy products, water, early life nutrition, and medical nutrition in different areas of the world.
Danone was founded in 1919 in Spain and its first yogurt sold in pharmacies for a “lighter digestion”: providing consumers with healthy food. The group focuses on a portfolio of products seen beneficial to health on a daily basis. It currently operates in 140 countries with 21 billion euros in turnover. Its “priority” markets are Mexico, Indonesia, China, Russia, United States and Brazil.
At the sidelines of the Chartered Financial Analyst (CFA) Summit on Wednesday, URC senior vice president and chief strategist Bach Johann Sebastian said after the acquisition of Auckland-based Griffin’s Foods Ltd., New Zealand’s leading biscuit and snack food manufacturer, for about NZ$700 million (P26.37 billion), URC was continuing to look for expansion opportunities in Southeast Asia.