JOLLIBEE Foods Corp. (JFC), one of Asia’s largest fast food chain operators, has gained full control of food manufacturer Happy Bee Foods Processing in China to supply its store needs in the Chinese mainland.
JFC acquired the remaining 30 percent stake in Happy Bee through its offshore unit, Jollibee Worldwide Pte. Ltd. (JWPL), from its partner Hua Xia Harvest Holdings Pte. Ltd., for $10.34 million (about P516 million) in an asset-for-equity swap.
Based on the terms of the deal, the rest of the assets of Happy Bee Anhui were transferred completely to Singapore-based Happy Bee Foods Processing Pte. Ltd., which is under JWPL.
The Jollibee group said it has secured the necessary governmental and regulatory approvals to take 100 percent ownership of Happy Bee Anhui from the previous 70 percent.
Happy Bee Anhui operates a manufacturing facility in Anhui, China that services the requirements of JFC’s Yonghe King business in the mainland as well as business institutions other than JFC’s.
“With the change in ownership, Happy Bee will no longer produce and sell food products to institutions other than JFC’s restaurant businesses,” JFC said, citing that this will enable the group to concentrate on supporting the growth of its Yonghe King business and further improving its food quality and safety.
Yonghe King is JFC’s largest business in China with a total of 316 stores as of end-October, accounting for 8 percent of JFC’s worldwide sales. Happy Bee Anhui produces the food products sold at Yonghe King stores.
To date, JFC operates 22 commissaries worldwide—15 in the Philippines, three in China, three in the US, and one in Vietnam. It is also building three additional commissaries in Luzon, while operating a joint venture poultry processing plant with Cargill.
It currently operates 3,236 stores in total, of which 2,565 are in the Philippines and 671 abroad.
Its brand network includes Jollibee, Chowking, Greenwich, Red Ribbon, Mang Inasal, and Burger King in the Philippines and in other parts of the world; Yonghe King, Hong Zhuang Yuan, San Ping Wan, and Dunkin Donuts in China; and Jinja Bar in the US.
The company is also exploring a joint venture with Japan’s largest egg producer ISE Foods Inc. for an egg production facility in the Philippines.