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In a move that will shake up the scope of fried chicken and bubble tea, Jollibee Foods Corp. said it has signed an agreement to buy a 51 percent stake in Milkshop International (Milksha) bubble tea company.
The deal has $ 12.8 million ($ 17.3 million) and Jollibee wants to touch this company to accelerate its global expansion plans.
The acquisition, which will be made through its subsidiary Jollibee Worldwide, will allow the fast food group to “participate in this growing beverage category and, together with the founder of Milkshop, grow the Milksha brand worldwide.”
Bubble tea madness
As well as being a crutch for many Singaporeans, the bubble tea business is making a lot of money. Recent estimates suggest that the bubble tea industry will reach $ 3.390 billion by 2027.
Milkshop is the land of “Bubble Tea” in Taiwan and Tainan. Founded in 2008, it manages tea shops with Milkshop and Milksha trade names.
It has more than 250 stores, of which 231 are in Taiwan and the rest in Singapore, Hong Kong, Melbourne and Vancouver. (You’ll remember the queues and dizziness when Milksha announced her Singapore debut.)
Milkshop can also be one of those businesses to deal with pandemics. Sales for its entire system rose 12 percent last year to $ 74.7 million, despite a pandemic and generating a modest net income, Jollibee said in a statement.
Jollibee is stepping up global expansion plans
These reasons should make it an easy decision for Jollibee to take a stake in Milkshop. As one of the cult and favorite fried chicken, Jollibee is known for its crispy fried chicken and iconic sweet spaghetti.
The team is staring foreign expansion and the opportunities created by Covid-19 bounce back from the historic losses caused by the pandemic, its CEO Ernesto Tanmantiong said in a March interview.
“This allows Jollibe to participate in this growing beverage category and, along with the founder of Milkshop, grow the Milksha brand worldwide,” the Manila food chain said in a statement.
This is not Jollibee’s introduction to worldwide expansion; Jollibe recently had it he bought the rest of the partners In the background with a Michelin-starred dim sum restaurant, Tim Ho Wan.
Jollibeee’s subsidiary, Jollibee Worldwide, bought the remaining 15 percent of the property owned by other investors in Titan Dining (a private equity fund owned by Tim Ho Wan’s brand and stores). This represents $ 71.56 million ($ 52.7 million) of shares.
Jollibee and boba
As if the scam day at Jollibee isn’t going to get any better, Milksha products are being sold in several units in Jollibee under a licensing agreement.
Jollibe’s latest deal is with Philippine restaurant operator Shakey’s Pizza Asia Ventures, which last year brought the Rfu milk tea brand of Koufu Group to its country.
Shakey’s has rolled out R&B milk tea in more than half of its pizza and Peri-Peri Charcoal Chick outlets, with dinner and delivery options. It seems that the bubble tea is ready to take over the world, one pearl at a time.
Featured image: Milksha, Jollibee
Also read: The Dollars and Sense of Running a Bubble Tea Business at S’pore: Is It Really Profitable?
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