Ayalas Close Manila Water's Purified Water Division Due to Losses

Ayala-led Manila Water is closing its Healthy Family Business Division effective October 31, 2020.

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Healthy Family is a purified water brand under Manila Water’s wholly owned subsidiary Manila Water Total Solutions Corp. (MWTS).

Launched in 2015, Healthy Family is a five-gallon bottled water guaranteed by both the Department of Health and the Food and Drug Administration. According to the website, Healthy Family “utilizes a fully-automated ‘closed-loop’ production system eliminating human intervention to prevent contamination.” 

But in a disclosure to the Philippine Stock Exchange, Manila Water said it is closing the division due to recurring losses and inability to financially sustain its business operations. 

“While the Healthy Family Business Division has in recent years made strong efforts to improve operations and profitability, the ever-increasing competition in the bottled water industry and the recent economic challenges have proved too difficult to cope and keep the business afloat,” it said.

The company, however, added that it is keeping its MWTS subsidiary open, where it will engage in its primary business of consultancy and related services for the implementation of water and used water network-related projects.

On Tuesday, the Philippine Competition Commission approved Trident Water Holdings Company’s acquisition of a controlling stake in Manila Water. Trident Water), the holding firm of Prime Metroline Holdings Inc., is controlled by billionaire Enrique Razon. 

The company acquired a 51 percent-voting interest in Manila Water via Trident's subscription to 820 million common shares of stock from the unissued authorized capital stock of Manila Water.