Ayala Group to bring UAE’s Spinneys to the Philippines

The Ayala Group on Wednesday announced a partnership agreement with Spinneys 1961 Holdings PLC. to open premium grocery stores in the Philippines, marking the retailer’s first expansion outside of the Gulf Cooperation Council (GCC).

Ayala Corp.’s (AC) wholly-owned subsidiary ACX Holdings Corp. inked an investment and shareholders’ agreement with Spinneys, owned by the Al Seer Group — a consumer holdings company part of a UAE-based group with interests in food, retail, hospitality, shipyards, and construction.

“We are honored to be the first partner of Spinneys as it ventures outside the GCC. We hope this investment will catalyze trade and investment between the Philippines and the GCC,” AC president and chief executive officer Cezar Consing said in an emailed statement.

Under the partnership, Ayala said it will combine its local market knowledge in the property, retail, and logistics sectors with Spinneys operational and brand expertise in premium fresh food retail.

“The Philippines offers significant long-term growth and potential, with strong economic fundamentals, a growing affluent population, and increasing demand for high-quality offerings,” Spinneys chief executive officer Sunil Kumar was quoted as saying.

“As we enter this next phase, we’re delighted to be bringing our high-quality and fresh offering to a new region that is natural for us to serve as we are proud to employ and cater to many Filipinos in our current market,” he added.

Just last week, the Ayala Group announced a joint venture between ACX Holdings and Thai company Makro ROH Company Limited to bring back the wholesale retail chain to the Philippines.

Ayala Corp. ended the first half with a 2% decline in its core net income to P23.7 billion, due to softer earnings from its telecommunications and energy businesses during the period. —VAL, GMA Integrated News