URC, Japan's Calbee aiming for bigger PHL market share

Gokongwei-led food and beverage manufacturer Universal Robina Corp. (URC) and Japan's snackmaker Calbee Inc. are setting their sights on expanding market share in the Philippines under a join venture deal.

 

In a disclosure to the Philippine Stock Exchange Monday, URC said both companies are currently pursuing talks to put up a Philippine joint venture.

 

In a statement posted on its website, Calbee said its decision to form a 50-50 joint venture company with URC to be called "Calbee-URC Inc." is in line with its global strategy.

 

"The joint venture aims to grow sales of Calbee products and expand market share in the Philippines, on the promising snack foods markets," the company said.

 

The new joint venture will contribute to its medium to long term business performance, Calbee noted. "We aim to achieve ¥4 billion (roughly P1.78 billion) of annual net sales within six years of business commencement," it said.

 

"Both parties aim to come to a definitive agreement by the 2nd quarter of 2014, at which point we will make an appropriate disclosure to the Philippine Stock Exchange," the URC disclosure read.

 

URC said details of the joint venture and other specific agreements are still being worked out.

 

Calbee Inc. has a 52.3 percent share of the Japanese snack foods market. Sales for fiscal year ending March 2013 reached more than ¥179.4 billion or P79.69 billion. – Danessa Rivera/VS, GMA News