URC, Hong Kong’s Vitasoy to test how PHL market takes to plant-based beverage

Universal Robina Corp. (URC) and Hong Kong's Vitasoy Group are going to test how the Philippine market will take to plant-based beverage.

The companies have entered into a joint venture deal to produce and distribute plant-based beverage products in the country, URC told the Philippine Stock Exchange on Thursday.

The joint venture company, Vitasoy-URC Inc., will be equally owned by URC and Vitasoy. The aim is to enter the "plant milk market" by building up the joint venture's product sales and portfolio.

Vitasoy Group CEO Roberto Guidetti noted the joint venture will explore the potential of sustainable plant-based beverages in the Philippines.

The initial paid-in capital of Vitasoy-URC is P10,000,000, with each parent firm holding 50-percent equity in the joint venture.
 
Vitasoy-URC is expected to start commercial operations in May 2017.
 
The joint venture, as well as its related party agreements moving forward, is still subject to approvals of the respective boards of directors of URC and Vitasoy, According to URC.
 
The Vitasoy Group makes and sells plant-based foods and beverages. Its main markets are Hong Kong, China, Australia and New Zealand, and Singapore. As of January 31, it has a market capitalization exceeding $2 billion.

On the other hand, URC – the company behind such brands as Jack ‘n Jill, Great Taste and C2 – has a market capitalization of almost $9 billion and a growing market presence in Oceania and the Association of Southeast Asian Nations. — Ted Cordero/VDS, GMA News