Jollibee brings Taiwan milk tea to America
Jollibee Foods Corp. (JFC) will bring one of its beverage brands to the United States as the homegrown fast food giant seeks to expand its footprint in the competitive specialty drinks segment worldwide.
The maker of the popular Chickenjoy meals on Friday said subsidiary Milkshop Japan Inc. granted Deleware-based MKSA LLC — also a JFC unit — the right to open and operate Milksha stores in the states of California, New York and Texas.
“Milksha is positioned as a craveable high-quality specialty beverage, which gives JFC the opportunity to participate in the fast-growing beverage category globally and, especially, in the USA,” the parent firm said in a stock exchange filing.
JFC acquired a controlling stake in Milksha, a Taiwan-based milk tea brand, in November 2021 through a $12.8-million infusion into owner Milkshop International Co. Ltd.
Milkshop Japan was included in the deal, while MKSA LLC, a US-based limited liability firm, was formed specifically to operate the brand in the United States, according to JFC.
The fast-food chain led by tycoon Tony Tan Caktiong completed its acquisition of Milksha, whose network is 93 percent franchised, in February 2022.
JFC said that, since then, it had grown the beverage brand’s store count by 24 percent to 327 outlets.
Taiwan remains Milksha’s largest market with 305 stores. It also has 14 stores in Hong Kong, six in Australia and two in the United Kingdom.
In the Philippines, Milksha is sold in at least 162 Chowking stores under a separate licensing agreement. Franchising is not yet available in the country.
Multi-brand move
Last year, Milksha generated $96 million in systemwide sales, an increase of 30 percent.
JFC has been aggressive in its entry into the robust beverage segment since acquiring a 50-percent stake in Vietnam-based Highlands Coffee in 2012. Five years later, JFC increased that stake to 60 percent.
In 2019, JFC, which also operates chicken barbecue chain Mang Inasal, acquired specialty coffee brand The Coffee Bean and Tea Leaf (CBTL) for $350 million. This was one of its most expensive investments yet.
The company is also set to take over South Korean coffee brand Compose Coffee in a $340-million deal with Elevation Equity Partners Korea Ltd. and Titan Dining II LP.
Once JFC completes its acquisition of 70 percent of Compose Coffee, its store network is expected to grow by 2,470 branches to nearly 10,000.
JFC currently has 6,965 stores across the globe, with the flagship Jollibee brand pitching in the most number of branches at 1,702. CBTL currently has 1,197, while Highlands Coffee has 797.
