Balai Ni Fruitas acquires Sugarhouse
![Balai Ni Fruitas acquires Sugarhouse](https://media.philstar.com/photos/2024/04/19/sugarhouse_2024-04-19_08-25-41.jpg)
Balai Ni Fruitas [BALAI 0.40, down 4.8%; 31% avgVol] [link], a subsidiary of the Lester Yu-controlled Fruitas [FRUIT 0.80 unch; 231% avgVol], disclosed that it will acquire the bakeshop Sugarhouse in a deal that is scheduled to close by the end of the month. BALAI will gain full control of the entire enterprise, including the side catering business and the commissary. No financial terms were disclosed, as the value of the transaction does not exceed P56 million (10% of BALAI’s assets).
MB bottom-line: This is definitely one of those legacy brands that still need to evolve beyond its core customer base that is slowly aging out of being able to attend its stores. In some ways, this is a perfect brand buy for Mr. Yu, as it allows quick monetization of the name and a few of its well-known products at a relatively small price, and without having to deal with a large number of new stores to learn and manage. I can’t say that I’m a fan, but most of my Titos and Titas don’t mind stopping by the location in the basement of Power Plant Mall. Remains to be seen if BALAI will be able to get my Titos and Titas to order Sugarhouse-branded goods for delivery. If it can, this will be a tidy win for BALAI.
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