Jollibee completes sale of Caffe Ti Amo to Euro-Med

MANILA, Philippines — Local fast-food giant Jollibee Foods Corp. has completed the sale of its niche coffee-and-gelato chain Caffe Ti Amo to a unit of Euro-Med Laboratories Philippines Inc., which is increasingly getting into the food business.

In separate disclosures to the Philippine Stock Exchange on Thursday, the JFC and Euromed said their respective units had consummated an asset sale and purchase agreement involving the local operations of Caffe Ti-Amo, a Korean brand.

JFC unit Coffeetap Corp. had sold the assets and also terminated its franchise agreement while Euromed’s subsidiary CafeFrance Corp. subsequently assumed the master franchise of Caffe Ti-Amo, which currently has two branches in the country.

It was earlier disclosed that JFC’s divestment in this business was in line with its strategy to focus more resources on its overseas expansion. This deal involving Caffe Ti-Amo was priced at P20 million.

Over the years, JFC’s strategy has been to embark on both organic and inorganic expansion, building homegrown brands while likewise acquiring other brands with big potential for expansion. In the last few years, though, it has focused on brands that it can scale up and has not hesitated to give up the smallest operating units under its network.

Aside from Caffe Ti Amo and Delifrance, Jollibee has folded up its Manong Pepe fast food chain, shortly after acquiring fast-growing grilled chicken chain Mang Inasal. Although Caffe Ti Amo is a growing venture, the decision to sell it was driven by a plan to venture into more lucrative markets.

JFC said its divestment has been in anticipation of the commencement of new businesses, namely San Pin Wang in China’s Guang Xi Province, and the joint venture with Viet Thai International Joint Stock company in Vietnam and other parts of Southeast Asia.

The venture with Viet Thai is seen allowing JFC to acquire a chain of 139 coffee shops in several territories, including Vietnam, Hong Kong, Macau and Southern China. On the other hand, the San Pin Wang venture will add 39 restaurants to JFC’s growing network in China.

JFC operates the country’s largest quick service restaurant network with a total of 1,946 stores in the Philippines and a total of 2,383 stores globally. Apart from the flagship Jollibee brand, it operates Chinese fast-food Chowking, pizza parlor Greenwich, bakery/ pastry shop Red Ribbon and grilled chicken chain Mang Inasal. It also owns and operates Yonghe King and Hong Zhuang Yuan in mainland China.