FRUITAS Holdings, Inc. is buying the assets of a food delivery service company to support the expansion of its delivery channels to cover all of its products.
In a disclosure to the stock exchange yesterday, the food and beverage kiosk operator said it is acquiring 100% of CocoDelivery, Inc. as a “response to changes in consumers’ purchasing patterns.”
This is equivalent to buying 375,000 outstanding shares in CocoDelivery at the price of P3 each, or P1.13 million for the whole transaction, which was funded using internal cash.
“Under Fruitas’ ownership, CocoDelivery’s hotline — #8COCO (Dial #82626) — will expand to be the single delivery hotline of Fruitas’ full product range. This will include Fruitas fresh fruit juices, Buko Loco 100% pure coconut water, Soy & Bean soy products, De Original Jamaican patties, Sabroso Lechon, and more,” it said.
CocoDelivery was launched in October 2018 and currently delivers fresh coconut water products of Fruitas subsidiary Fruitasgroup, Inc.
Fruitas said its move to tap the firm for delivery of all its products is its way to adjust to the “quickly adopting on-demand food delivery services.”
“The objective of this acquisition is to deliver products which will nourish our customers’ overall wellness at the convenience of their own homes, place of work or any desired location,” Fruitas President and Chief Executive Officer Lester C. Yu said in a statement.
Fruitas’ line of products currently include food and beverage concepts distributed under brands such as Fruitas Fresh from Babot’s Farm, Buko Loco, Buko ni Fruitas, De Original Jamaican Pattie, Johnn Lemon, Juice Avenue, Black Pearl, Friends Fries, The Mango Farm, 7,107 Halo Halo Islands, Kuxina, Shou La Mien Hand Pulled Noodles and Sabroso Lechon.
The company also recently announced it is venturing into the soy product and grilled chicken business.
Aside from CocoDelivery, Fruitas will be maintaining its partnership with Grab and the own delivery service of Sabroso Lechon. It said delivery channels account for a high single digit percentage of the company’s total sales, hence the added investment to improve the service.
“Fruitas expects to immediately realize synergies from this acquisition, maximizing the utilization of the combined motorcycle fleet of Fruitas and CocoDelivery and consolidating the marketing of Fruitas’ delivery service,” it said.
The delivery hotline of CocoDelivery will initially be available in Metro Manila only from 9 a.m. to 7 p.m.
Shares in Fruitas at the stock exchange fell 36 centavos or 21.69% to P1.30 each on Monday. — Denise A. Valdez