September 16, 2014

RRHI partners with Costa Coffee

Robinsons Retail Holdings Inc (RRHI) today disclosed to the Exchange that it has signed an international distribution agreement for the supply of Costa coffee beans and operations of Costa Coffee shops in the Philippines through its wholly-owned subsidiary, Robinsons Gourmet Food and Beverage Inc.

Costa Coffee started out in 1971 in London as a wholesale operator that supplied caterers and specialist Italian coffee shops. It branched out to retailing coffee in 1978 when it opened its first coffee shop in London. It now has over 2,900 stores across 30 countries and has been consistently voted best branded coffee shop in Europe. The first Costa Coffee shop in the Philippines is targeted to open in 2015.

Our take: The entry of RRHI into the coffee shop business further diversifies its holdings away from its traditional supermarket and modern retailing formats where competition is currently fierce. We believe the added diversity to its holdings will allow the company to weather challenges better as was seen in its most recent quarterly results where specialty stores picked up the slack from its supermarket and convenience store businesses. – WealthSec