Jollibee now fully owns China-based Happy Bee Foods
Jollibee told the local bourse on Wednesday, November 23, that its wholly-owned subsidiary Jollibee Worldwide Private Limited now owns 100% of Happy Bee Foods, after obtaining government and regulatory approvals in China for the transfer of assets.
Last February, Jollibee entered into an agreement with Hua Xia Harvest Holdings Private Limited, to acquire the latter's 30% equity shareholding in the joint venture entity, Happy Bee, via asset for equity deal.
As consideration for the acquisition of the additional 30%, Jollibee, through its subsidiaries, effectively conveyed to Hua Xia certain manufacturing facility assets worth $10.34 million related to the production and sale of products for outside institutions.
Happy Bee Anhui operates a manufacturing facility in Anhui, China that services the requirements of Jollibee's Yonghe King business as well as produces and sells food for business institutions other than Jollibee brands.
With the change in ownership, Happy Bee will no longer produce and sell food products to institutions other than Jollibee-owned restaurant businesses.
Jollibee said this acquisition will enable it to concentrate on supporting the growth of its Yonghe King business and on further improving its food quality and increasing the assurance of its food safety.
Yonghe King is Jollibee's largest business in China, with a total of 316 stores as of October 31 this year. It contributes 8% to the group's worldwide system-wide sales.
At present, Jollibee operates a total of 22 commissaries worldwide: 15 in the Philippines, 3 in China, 3 in the US, and 1 in Vietnam.
It is also building 3 additional commissaries in Luzon in the Philippines and a joint venture poultry processing plant in a joint venture with Cargill.
It is also exploring a joint venture with Japanese firm ISE Foods Incorporated for an egg production facility in the Philippines.
In Jollibee's business model, it builds and operates food processing facilities that supply exclusively the food served in its restaurants. This structure is intended to ensure superiority of food quality, food safety, and product innovation. – Rappler.com