Merkado Barkada
October 29, 2024 | 8:10am
Fruitas [FRUIT 0.76, up 1.3%; 25% avgVol] [link] clarified reports that had acquired Mang Bok’s Lechon Manok for an “unbelievably low” price, and that the company planned to open three new branches in FY24. FRUIT said that the company was “not the source” of the information reported in the original article, and that “at this time” FRUIT has not “entered into any definitive agreements related to the acquisition of Mang Bok’s Lechon Manok.” FRUIT said they continue to explore opportunities and have yet to make any binding commitments.
MB bottom-line: FRUIT has been doing a good job of scooping up brands to build out its growing portfolio of “food IP” that it can use to fill retail spots or expand its app-based platform of delivery options. As consumers return to malls and the regular flow of working-class life, FRUIT will be in a position to grow income from foot traffic which was its traditional competitive advantage back in The Before Times when FRUIT first listed. I feel like there are several lifetimes of these smaller acquisitions that FRUIT could make to consolidate all of the pre-app regional brands that dominated the pre-COVID foodscape. I’ve heard a few analysts sigh and wish that FRUIT were larger so that its management team could get some attention from big-league investors, and what I agree with is that I wish this team could make plays that were on a larger scale. Nothing against fans of Mang Bok’s. This is potentially a huge deal and one that is within the team’s wheelhouse of competency. I’m just looking for something transformative.
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