Universal Robina to buy Hidden Spring brand for $5M

In a bid to beef up its beverages arm, Gokongwei-led Universal Robina Corp. will buy Nestle Waters Philippines’ Hidden Spring mineral water brand for about $5 million by April 2, a company official said. BJ Sebastian, Universal Robina corporate planning director, said Nestle has agreed to sell its water business, particularly the Hidden Spring trademark as well as its license to produce and sell the Nestle Pure Life bottled water line. Nestle wants to sell its water business because it "has not performed as expected," Nestle spokesman Pedro N. Dy-Liacco said in a statement. Nestle’s primary products include coffee products, milk, iced tea, noodles, and ice cream. "[Universal Robina] has the core competence in bottled beverages. For its part, Nestle will focus on core businesses which include milk, coffee, food and other beverages," Mr. Dy-Liacco said. Universal Robina, maker of the C2 green tea beverage, has identified its beverages arm as its fastest-growing line. The company also makes snack foods, instant noodles, cereals, coffee products, sweets, biscuits, powdered milk and other agro-industrial products. With growing health consciousness among consumers, the C2 health drink posted a 100% increase in value and a 76% growth in volume during the fourth quarter. Universal Robina’s consolidated net sales for that quarter amounted to P9.2 billion, an increase from P9.1 billion in the same period last year. Profits went up almost five-fold to P3.6 billion from P738.8 million in the same period last year. Mr. Sebastian said the looming transaction would include Nestle’s bottled water manufacturing plant in San Pablo, Laguna but will not involve Nestle’s other water brands such as Perrier and Vittel. Under the agreement, Universal Robina has also agreed to hire "substantially" all of Nestle Waters’ employees who work in the Laguna plant. Nestle Waters will pay a separation package to all employees as provided by company policies and a collective bargaining agreement, as well as financial assistance, livelihood courses, outplacement support, and lifestyle planning workshops. — Reagan D. Tan/BusinessWorld