Metro Manila (CNN Philippines, November 4) — Homegrown fast-food giant Jollibee Foods Corp. (JFC) seeks to cash in on the fast-growing bubble tea market through a multimillion-dollar acquisition of a majority stake in Taiwan’s Milkshop International Co. Ltd.
The country’s largest restaurant operator bared Thursday its plan to secure 51% ownership in Milkshop, also known as Milksha. It is a popular Taiwanese bubble tea brand that boasts more than 250 outlets, 19 of which are scattered across Hong Kong, Melbourne, Vancouver and Singapore.
The transaction is expected to reach $12.8 million, JFC said in a filing to the local bourse. It noted the final purchase price will be disclosed after closing.
Acquiring a controlling stake in a known bubble tea brand would allow JFC to tap the multibillion-dollar industry and further expand the Milksha brand in more international markets.
JFC also noted that despite the COVID-19 pandemic, Milkshop still booked system-wide sales of $74.7 million in 2020, proving the industry’s solid traction across markets.
In June of this year, JFC—with its subsidiaries Fresh N’ Famous Foods, Inc. and Mang Inasal—sealed a licensing agreement with Milkshop, an exclusive right allowing the group to sell and market the Taiwanese company’s products in their stores.
JFC said Milksha products will “soon” be offered in Chowking stores.
JFC has the largest foodservice network in the Philippines, with 3,202 restaurant outlets as of end-September.
