Calbee disposes stake in Philippine potato venture
Major Japanese snack food maker Calbee Inc. wants out, leaving all its stake in Philippine joint venture Calbee-URC Inc. to its partner Universal Robina Corp. (URC).
In a statement posted on its website, Calbee said it already signed a share transfer agreement with URC, involving the sale of 32.7 million shares, which is equivalent to a 50-percent stake in Calbee-URC, for P170.60 million.
“The joint venture aimed to grow sales of Calbee products and expand market share in the Philippines. However, after three years passed from the start of production and sales of our products, based on the review of overseas business strategy of Calbee and by reviewing the profitability of the business, Calbee discussed with URC and mutually agreed that URC would take over the joint venture business,” Calbee said.
The transfer of shares and the termination of the joint venture partnership is set on September 30, 2018.
“As the snack market in the Philippines is still promising and expecting to grow continuously, even after closing the joint venture agreement, Calbee agreed with URC that Calbee continued the licensing to URC to produce and sell Calbee brand products,” the company further said.
In the span of three years, the brand has been incurring losses. Calbee-URC posted a a net loss of P100.38 million in 2015, P85.33 million in 2016 and P95.65 million in 2017.