In a transfer that’s more likely to shake up the fried hen and bubble tea sphere, Jollibee Meals Corp mentioned it has signed a deal to purchase a 51 per cent stake of bubble tea firm Milkshop Worldwide (Milksha).
The deal is at a price ticket of US$12.8 million (S$17.3 million) and Jollibee plans to faucet on this enterprise to speed up its international growth plans.
The acquisition, which can be made by way of its subsidiary Jollibee Worldwide, will present the fast-food group the “alternative to take part on this fast-growing beverage class and along with Milkshop’s founder, develop the Milksha model globally”.
Bubble tea craze
In addition to being a crutch for a lot of Singaporeans, the bubble tea enterprise can be raking within the huge bucks. Latest estimates have positioned the bubble tea trade to achieve US$3.39 billion by 2027.
Milkshop hails from the ‘Land of Bubble Tea’, Taiwan, and Tainan. Based in 2008, it operates specialty tea outlets beneath Milkshop and Milksha commerce names.
It has greater than 250 shops, of which 231 are in Taiwan and the remainder are in Singapore, Hong Kong, Melbourne, and Vancouver. (You’ll bear in mind the frenzy and snaking queues when Milksha introduced its debut in Singapore.)
Milkshop would possibly even be a kind of companies which are pandemic-proof. Its systemwide gross sales rose 12 per cent to US$74.7 million final yr regardless of the pandemic and are producing modest web earnings, Jollibee mentioned in a press release.
Jollibee ramps up international growth plans
These causes will need to have made it a simple determination for Jollibee to take up a stake in Milkshop. As one of many cult and most popular fried hen manufacturers, Jollibee is understood for its crispy fried hen and iconic candy spaghetti.
The group has been trying towards abroad growth and alternatives created by Covid-19 because it rebounds from historic losses that’s additionally pandemic-driven, its CEO Ernesto Tanmantiong had mentioned in a March interview.
“This provides Jollibee the chance to take part on this fast-growing beverage class and along with Milkshop’s founder, develop the Milksha model globally,” the Manila-based meals chain mentioned in a press release.
This isn’t Jollibee’s foray into worldwide growth; Jollibee had lately purchased out its remaining companions within the fund that owns Michelin-starred dim sum restaurant, Tim Ho Wan.
Jollibee’s subsidiary, Jollibee Worldwide, bought the remaining 15 per cent owned by different traders in Titan Eating (the non-public fairness fund that owns the Tim Ho Wan model and shops). This represents S$71.56 million (US$52.7 million) of the shares.
Jollibee and boba
As in case your cheat day at Jollibee couldn’t get any higher, Milksha merchandise are actually being bought in some Jollibee items beneath a licensing settlement.
Jollibee’s newest deal follows that of Philippine restaurant operator Shakey’s Pizza Asia Ventures, which final yr introduced Koufu Group’s R&B milk tea model into its residence nation.
Shakey’s has rolled out R&B milk tea in additional than half of its pizza and Peri-Peri Charcoal Rooster shops, with dine-in and supply choices. It looks like bubble tea is poised to take over the world, one pearl at a time.
Featured Picture credit score: Milksha, Jollibee
Additionally learn: The {Dollars} And Sense Of Working A Bubble Tea Enterprise In S’pore: Is It Truly Profitable?
