A few years after gaining a foothold in food retailer Goldilocks Bakeshop, conglomerate SM Investments Corp. has obtained majority control of the enterprise by boosting its interest to 74 percent from just 34 percent in 2018. Back in 2017 when SM Retail first proposed to take over Goldilocks, the country’s antitrust agency Philippine Competition Commission (PCC) had set certain requirements which were then quite difficult for the parties to swallow.
SM was asked to commit to certain measures amid an apparent concern that gaining control of this business would make SM, as landlord, competitor to other fast-food tenants.
The PCC also cited risks that “discrimination or unfair treatment” might arise in the form of “arbitrarily assigning competitor tenants to disadvantageous locations or unfavorable lease terms.” It can also come in the form of giving less favorable lease terms or completely refuse them lease space in the mall, which amounts to total foreclosure.
As such, the SM was required to put up an “information firewall” which means SM, as mall operator, will not give Goldilocks access to competing mall tenants’ information—including sales data captured by the POS (point of sale) system of SM tenants, whether referring to consolidated sales, product category level or stock keeping unit level information, such as prices or quantities sold.
Over a period of five years, the PCC wanted to monitor the business periodically, including random inspections.
We can only assume that the PCC will invoke the same requirements now that SM has raised its stake, assuming that the transaction will hit the new thresholds. Early last year, PCC raised the notification trigger from P5.6 billion to P6 billion for the “size of person” and from P2.2 billion to P2.4 billion for size of transaction. Even prior to the pandemic, Goldilocks’ estimated enterprise valuation was just around P2 billion, so there’s a chance that the deal size threshold won’t be triggered after all.
Nonetheless, SM is ready to face whatever requirements will be imposed this time around.
“In undertaking the acquisition of additional shares in Goldilocks, we are complying with existing regulations,” SM said.
—Doris Dumlao-Abadilla
‘Bukonado’
While vaccine hesitancy is not that big of a problem in the Philippines, there is still that occasional person who, for one reason or another, is unsure about whether he or she should get a COVID-19 vaccine.
To combat this—and to help accelerate the country’s journey to the goal of achieving 70-percent herd immunity—several companies are offering incentives for people to get inoculated.
Many stores offer discounts of 5-10 percent for those who can present vaccination cards, whether they’ve had one or two shots, while transport companies give free rides or free snacks to commuters or travelers who’ve received the jab.
The latest company to join the vaccine encouragement bandwagon is Fruitas Holdings, which recently teased its “Bukonado” (a play on its flagship product, buko juice, and “bakunado” or “vaccinated”) campaign over social media.
Biz Buzz heard that the full mechanics are still being worked out, but the basic scheme is that the firm’s clients are encouraged to buy the Fruitas’ buko juice, post pictures of these and tag the company.
The firm will use either a randomizer program or select the pictures that have the most “likes” from the public (meaning they have to be eye catching and creative), and the ones selected will be entitled to COVID-19 vaccines courtesy of the company.
It’s a novel idea and it remains to be seen how it will be received by the public, but judging from Thursday morning’s pictures of long queues of people trying to get their jabs from various local government units, it looks like the company has a hit campaign in the making.
—Daxim L. Lucas
Schooling Central Luzon
Getting long-standing educational institutions to set up satellite campuses in any big estate outside Metro Manila is a tried-and-tested way of attracting families to buy residential units and form new communities. In the case of property giant Ayala Land, several big schools will open branches in its Central Luzon estates in the coming years.
Alviera development in Pampanga will be home to a new Miriam College by 2023. Holy Angel University is also setting up a campus in Alviera and opening by 2024.
The 290-hectare Cresendo estate in Tarlac province, on the other hand, will also be the site of a new Don Bosco campus, which will specialize in quality technical-vocational education and training.
Meanwhile, to assist small businesses, ALI (Ayala Land Inc.)—which is celebrating its 30th year milestone as a publicly listed company—has provided rent-free retail space in Ayala Malls for at least 300 social enterprises this year, with the objective of aiding their growth, perking up local consumption and ultimately helping to accelerate the country’s recovery. This is part of the company’s “Alagang AyalaLand” campaign, which is an ongoing community engagement program to generate livelihood through social enterprises, provide disaster relief and promote a sustainable environment.