GS Holdings, via its indirect wholly owned subsidiary Hao Kou Wei (HKW), has entered a 50:50 joint venture agreement with Singapore food manufacturer Focaccia Foods to develop, franchise and manage food and beverage brands, the company said in a filing to SGX Monday.
The joint venture will initially target a new food and beverage concept to be developed into a franchise model, targeting locations in Singapore-style coffee shops and food courts in the city-state, the filing said.
“The business will be primarily carried out in Singapore, notwithstanding that the food & beverage brands developed may be sold and/or franchised locally and/or other overseas markets, with support to be provided by the JV company,” the filing said.
The joint venture “will facilitate the group’s expansion of its F&B business, development of new F&B brands for regional franchising at a relatively small investment amount,” GS Holdings said. “In addition, by leveraging on the strong network, experience and expertise of the JV partner and the group in respect of F&B business and in particular, franchising, HKW’s entry into the joint venture agreement provides a strategic platform for the group to execute its expansion plans in respect of F&B brands development.”
GS Holdings said it hoped the joint venture would create strong Singapore brands to represent the city-state locally and overseas by way of franchising.
“The company also intends for the joint venture to provide a platform to engage and develop local entrepreneurial in the F&B industry in Singapore, with a view for such talents to expand their expertise in domestic and overseas markets, together with the group,” GS Holdings said, adding it wanted to provide new business opportunities for local entrepreneurs via franchises of the new brands.
The net tangible asset value of the joint venture, which was incorporated on 8 October, is S$19,785, the filing said, noting operations haven’t yet commenced.
Focaccia Foods, which operates in Singapore, is mainly a food manufacturer and a distributor of frozen food products to food businesses and local retail supermarkets; it also operates food and beverage outlets, including canteen operations in an overseas international school.
Focaccia Foods has expanded its product line from pizza products to include Indian curry puffs and other Asian foods.