Splash buys Barrio Fiesta for P472M

MANILA, Philippines - The Hortaleza family,which owns leading Filipino-owned beauty and personal products maker Splash Corp., is breaking into the food manufacturing business with plans to acquire 80 percent of Barrio Fiesta Manufacturing Corp. for P472 million.

In a disclosure to the Philippine Stock Exchange, Splash said it would establish a new company that would handle the group’s food business operations. The acquisition of the legacy Filipino brand, however does not include the Barrio Fiesta chain of restaurants.

The Barrio Fiesta brand carries high credibility in authentic Filipino foods, and under this brand, Splash will launch various food products (including condiments) here and abroad over the next 12 to 24 months.

Since 1987, Barrio Fiesta has generated a number of food products that have been staples in Filipino households for 50 years, from sautéed shrimp paste to ready-to-eat canned meals, sauces such as white vinegar, fish sauce, soy sauce and lechon sauce; to fruit preserves and other condiments.

Splash is aiming to become a major player in the food industry through the expansion of food lines and capitalizing on its marketing and distribution capabilities in specific countries.

“As in the personal care business, which we have built for 26 years, we intend to establish our mark in the food industry, starting off with the Barrio Fiesta brand of products. This will propel the company to be a major player in this industry,” said Rolando B. Hortaleza, chief executive officer of Splash.

Being consistently in the Top 300 corporations in the Philippines since 1998, the company has established its reputation as one of the formidable players in the domestic personal care industry. Splash carries the brands Extraderm, Maxi-Peel and Skin White, as well as Bioskin, one of the fastest-growing skin care brands in the country.

Splash earlier approved a plan to set up a subsidiary in Uganda to serve as its vehicle for the coffee business.

Overseas unit Splash Global Pte. Ltd. is looking to invest in companies that would further boost its presence.

Splash also formed a distribution unit in Malaysia called Splash H & B Sdn. Bhd. that will help widen its market reach in the area. 

Splash products are now available in Indonesia, Malaysia, Vietnam, Myanmar, Laos, and Cambodia. It is also sold in the Middle East and Africa.

International operations account for over 10 percent of the total revenues of Splash. The company is eyeing revenues of around P3 billion in 2010 or 15 percent higher than the P2.71 billion registered a year earlier.

For this year, Splash is looking at a more than 20 percent rise in revenues.