F&B Brand Monde Nissin to Acquire a Stake in Figaro Coffee Group for PHP 820.3 million

Monde Nissin’s 15% acquisition at PHP 820.3 million is reported to be higher than Figaro Coffee Group’s market price per share—a day before the disclosure.

Global food and beverage company Monde Nissin is acquiring a 15% stake in Figaro Coffee Group, Inc. (FCG), which will cost it PHP 820.3 million, according to the Philippine Stock Exchange (PSE). PSE made the disclosure on Thursday, January 26. 

At a peso per share, the amount is higher than the market price per share of FCG, which closed at ₱0.89 per share—the day before the disclosure. 

Monde Nissin is best known as the manufacturer of instant noodle and biscuit brands like Lucky Me!, SkyFlakes, Fita, and more. Meanwhile, FCG is the owner of Figaro Coffee Systems, Inc. (FCSI), which operates and/or franchises a network of restaurants, including Figaro Coffee, Angel’s Pizza, Tien Ma’s, The Figaro Group (TFG) Express outlet, and Café Portofino. 

What This Means for Both Monde Nissin and FCG

In a joint press release, Figaro Coffee Group’s Chairman Emeritus Jerry Liu says that his company welcomes “this partnership with Monde Nissin, as we believe a combination of their leadership in the food sector, strength in manufacturing and timeless brand equity—combined with our fast-growing store network and brand strength will yield excellent opportunities for Figaro Coffee Group to solidify its position as a very strong and stable F&B company.”

On the other hand, Monde Nissin’s Chief Executive Officer, Henry Soesanto, says that Monde Nissin is looking forward “to working with the Figaro Group management team and potential future collaborations that this new relationship may offer.”

The press release states that Monde Nissin believes that becoming a shareholder in FCG provides them with better exposure to the food sector, which is a potential avenue for growth for the company—both locally and abroad. 

On the part of FCG, the full PHP 820.3 million will be used to fund the expansion plans of the company. Aside from this, Monde Nissin’s scale is seen to enhance FCG’s current procurement capabilities. 

The Future of Local Food Service Industry in Numbers

Monde Nissin’s plans to further explore the food service industry come at a very opportune time. As the country continues to recover from the ongoing COVID-19 pandemic, things are looking up for the local food service industry—given that it is projected to hit a little over PHP 1 trillion by 2026, according to data and analytics firm GlobalData.

With consumer confidence and food service establishments’ capacity continuously increasing, more and more people are dining out and holding large events, which have benefited the F&B and hospitality industry, which has been badly hit at the height of the pandemic. 

While food service sales hit $14.582 billion (around PHP 796.50 billion) in 2019—a record high—things took a downward turn when the pandemic hit. Only $7.973 billion (around PHP 435.50 billion) in sales was recorded in 2020. Thankfully, the numbers improved a year later when they reached $8.373 billion (around PHP 457.70 billion).

And with the easing of lockdown restrictions, these numbers are projected to improve significantly in the coming months and years, which in turn, paves the way for many players—both old and new—to enter the F&B market. Moreover, there are many opportunities in the food business that they can get into, too!