Local fast food giant Jollibee Foods Corp. (JFC) is taking advantage of the growing bubble tea market by securing a majority stake in Taiwanese company Milkshop International Co. Ltd.
In a communication to the Philippine Stock Exchange on Thursday, JFC announced that its wholly owned subsidiary Jollibee Worldwide Pte. Ltd. (JWPL) would buy shares equivalent to 51% stake in Milkshop International for approximately $ 12.8 million.
JFC said one of the co-founders of Milkshop International will retain 49% ownership of the bubble tea company.
“Completion of this transaction is subject to certain closing conditions, and the final purchase price will be confirmed after closing,” he said.
Milkshop International, founded in Tainan City, Taiwan in 2008, is mainly involved in the development, operation and franchise of specialty tea stores under the trade names Milkshop and Milksha.
JFC stated that Milkshop uses only high quality milk, carefully selected tea, and natural ingredients.
She produces milk from her own dairy ranch and her bubble is free of chemical additives, preservatives and caramel coloring, the company said.
The fast food group said Milkshop has more than 250 outlets, with 231 outlets in Taiwan, four in Hong Kong, two in Melbourne, two in Vancouver and 12 in Singapore.
Total system-wide Milkshop International sales for 2019 were approximately $ 66.5 million.
Despite the pandemic, Milkshop generated system-wide sales of $ 74.7 million last year.
“First introduced in Taiwan in 1987, bubble tea has since grown into a multi-billion dollar global industry,” JFC said.
“This gives JFC the opportunity to participate in this fast growing beverage category and, together with the founder of Milkshop, grow the Milksha brand globally,” he added.
In June, JFC announced it would bring Milksha to Filipino consumers, with the Philippines home to one of Southeast Asia’s largest milk tea markets.
JFC and its subsidiaries, Fresh N ‘Famous Foods, Inc (FNF) and Mang Inasal Philippines Inc., (MI) now have the exclusive rights, through a license agreement with Milkshop, to sell and market products under the Milksha brand in their stores.
Milksha products will soon be sold in Chowking stores, he said.
JFC is one of Asia’s largest restaurant companies with a global network of 5,853 stores and 17 brands operating in 34 countries. – VBL, GMA News