Balai acquires Sugarhouse

Listed bakery operator Balai ni Fruitas Inc. is beefing up its portfolio with the addition of the 40-year-old legacy brand Sugarhouse.

In a stock exchange filing, Balai said it signed an agreement to acquire the brand and various assets related to the Sugarhouse business.

Sugarhouse is a company that offers baked goods and pastries.

Since it opened in 1983, it has also expanded its menu to include a wide array of breads, pastries and meals.

ÒIn line with our aim of delivering shareholder value, we are complementing our organic growth with a key acquisition that will allow us to serve more products to more Filipinos,Ó Balai president and chief executive officer Lester Yu said.

Yu said the acquisition would integrate well into the groupÕs brand line-up, with significant synergies expected.

The acquisition of Sugarhouse will allow the company to expand its product offerings, particularly in the cake category and tap a broader customer base.

Balai will also gain additional production capacity to fuel its growth.

ÒSimilar to the past acquisitions of the House of Fruitas, we will invigorate the brand and seek to bring it to new heights,” Yu said.

Balai said the acquisition includes assets such as intellectual property, technical know-how, delivery, commissary and store equipment.

It will also take over the catering business of Sugarhouse.

Balai expects completion of the acquisition to take place on or before May 1.

Balai has a retail network of 118 as of end-2023.

Its brands include Balai Pandesal, Buko ni Fruitas and Fruitas House of Desserts.

Balai started its operations in August 2005 when it opened its first Buko ni Fruitas kiosk in Robinsons Place Manila, serving fresh coconut-based beverages and desserts.