Fruitas Holdings, Inc., the Philippines’ leading food & beverage kiosk operator, is considering raising more funds as it is seeking to diversify outside its core food service businesses.
In a disclosure to the Philippine Stock Exchange, the firm said its Board of Directors has approved to widen the scope for its potential acquisitions, which no longer needs to be limited to foodservice, but can include targets which will allow Fruitas to broaden its network and reach more Filipinos.
Specifically, the Fruitas Holdings Board approved to remove the restriction of using proceeds from its initial public offering allocated to acquisitions solely on foodservice targets.
“We also continue to seek ways to add new revenue and profit streams. The foodservice and retail sectors are evolving quickly and we need to also adapt our acquisition criteria,” said MFruitas Holdings President and Chief Executive Officer Lester Yu.
He added that, “we continue to focus on our customers and seek ways to further facilitate customers’ access to Fruitas and deepen our relationship with them.”
The Fruitas Board also authorizedmanagement to evaluate fundraising options, including notes, bonds and preferred shares, so the Group can further seek longer-term growth capital.
This comes after the firm said it has achieved its yearend target for community stores to further diversify its distribution channels.
Fruitas said it is targeting to expand its community store network to 100 by 2021.
“We were able to build our community stores even during the quarantine and achieve our target within four months. We were also able to quickly adapt and widen our product range for such format,” said Yu.
He noted that, “We believe that we are in stronger footing now with our community stores and delivery service which is accessible through phone, dedicated website and social media.”
Yu said “We will build on our strengths of operating a nationwide network of small footprint stores, and providing healthy and minimally processed products which provide happiness.”
Fruitas opened Soy & Bean in Suki Market in Mayon Street, Quezon City on December 27, its 30thstore under the Babot’s Farm and Soy & Bean brands, achieving its earlier announced target for the year.
On December 23, it also opened Soy & Bean in President’s Avenue, BF Homes, Paranaque.
Babot’s Farm and Soy & Bean stores offer the same breadth of products from the Fruitas Group, including fresh fruit juices, soy-based products, Fruitas and Soy & Bean ice cream, frozen Jamaican Patties and Shou Chinese delicacies, and selected partners.
Babot’s Farm carry fresh fruit juices as its anchor product while Soy & Bean carry soy-based items as its anchor product.These stores, which still have a relatively small footprint and are strategically located to serve dense residential communities, are already having a significant positive impact on profits.(James A. Loyola)