There is no denying that Jollibee is fast becoming a name increasingly known by people around the world. And that goes beyond just having branches of the Philippine fast-food chain in so many foreign countries. As a company Jollibee Foods Corporation is already one of the biggest in Asia, thanks to having acquired most of its local competing chains and, more recently, purchasing or gaining controlling stakes in foreign brands. While the COVID pandemic hit JFC hard along with every other business out there, they have bounced back enough that the company has resumed its key franchise acquisitions, such as this latest one from Taiwan.
CNN Philippines reports that Jollibee Foods Corp. announced plans to acquire a majority stake in Milkshop International Co. Ltd., better known as Milksha, a bubble tea brand headquartered in Taiwan. This Thursday, November 4, JFC revealed that it is negotiating anywhere up to $12.8 million in purchasing 51% ownership of Milksha, thus making its official entry into the popular bubble tea market. And Milksha is a formidable brand with 250 outlets, nearly 20 of them being located overseas in Hong Kong, Singapore, Australia and Canada.
One notable reason Jollibee Foods provided for its new acquisition bid is their observation of how bubble tea brands managed to keep a brisk business even during the pandemic period. In the case of Milkshop, back in 2020 their system-wide sales reached $74.7 million. Initially, dealings between JFC and Milkshop as far back as this past June consisted of a licensing agreement. This would lead to Milksha products becoming available for customer purchase in Chowking fast-food restaurants, although JFC declined to date when this would take effect. Getting a controlling stake in Milkshop simply seemed like the natural course. Jollibee plans to disclose the negotiated transaction when it is finalized.
Jollibee Foods Corporation boasts a growing international brand portfolio, ranging from China’s fast-food chains Yonghe King and Hongzhuangyuan, to America’s Panda Express and The Coffee Bean & Tea Leaf. It also has a joint venture with Japan’s Yoshinoya fast-food brand.
Image from Inquirer.net – Business