Po Family acquires Potato Corner and Ligo ahead of 2022

The Po family aims to end 2021 on a high as they make the move to acquire Potato Corner and Ligo. Both deals come months after the death of the family patriarch, Ricardo Po Sr.

The acquisitions were also announced to the Philippine Stock Exchange early Friday morning in a separate disclosure by the Centrury Pacific Food Inc. (CNPF) and Shakey’s Pizza Asia Ventures (SPAVI). Both conglomerates are majority-owned by the Po family.

CNPF has said that the acquisition of Ligo, a household name for sardines, will involve the purchasing of assets and intellectual property related to Ligo’s product manufacturing.

“We are deeply humbled that the Tung family has entrusted this brand to our company, and we shall do our utmost to honor this legacy brand and continue its heritage,” Christopher Po, company executive chairman, said.

Canned sardines has been a staple in Filipino households due to their price and taste flexibility. Ligo as a brand has been a mainstay in the market for over 60 years and it has even made its mark in popular culture.

“This will be an accretive, bolt-on acquisition. We foresee synergies in selling and distribution, supply chain, and marketing,” Po added.

Francesca Acop, an equity analyst for Regina Capital, believes that the acquisition will propel CNPF as a top manufacturer in the country’s canned sardines industry.

“This would strengthen CNPF’s core business as we can expect synergies in terms of selling and distribution, supply chain, and marketing,” Acop said in a Viber message.

“Recall that in the third quarter of 2021, revenues from its branded segment sustained its growth due to the continuous demand for staples amid the pandemic,” she added.

This year, CNPF has been continuously adding brands to its portfolio, purchasing Pacific Meat Company Inc., Goodest, unMEAT, and Choco Hero.

As for Potato Corner, the purchase is seen as significant as the flavored fries company has over 1,000 stores in the Philippines with a “growing footprint in Asia and beyond,” according to the company statement. However, due to the pandemic, the brand incurred heavy losses in the past 21 months as mobility restrictions reduced foot traffic and limited the number of buyers.

Po has said that the deal will bring them closer to MSMEs as the addition of Potato Corner is a “top choice” for budding food enterprises.

“We intend to work closely with them towards making their business successful. As we grow Potato Corner’s business, the more we promote entrepreneurship,” he said.

SPAVI stated that Potato Corner will boost Shakey’s “reopening play” in the coming year, noting the french fries brand’s presence in over 10 countries will diversify operations and revenue streams.

“The brand would make up for PIZZA’s relatively low footprint internationally. The acquisition is aligned with PIZZA’s aggressive expansion plan since it formed the subsidiary, WOW Brand Holdings Inc. to acquire food businesses in the country,” said Acop.

Source: Philstar