Jollibee drinks up Taiwanese bubble tea shop Milkshop as it ramps up acquisitions to fulfil global ambitions
- The Philippine fried-chicken chain is set to purchase 51 per cent of Milkshop for US$12.8 million
- Jollibee owns a variety of restaurant chains including Hong Kong dim sum chain Tim Ho Wan and the Dunkin’ Donuts franchise in China
Jollibee Foods Corporation (JFC), operator of the eponymous fast food chain famous for its crispy fried chicken, is buying a majority stake in Taiwanese company Milkshop International Co Ltd in the Philippine company’s first foray into the bubble tea sector that could bring it closer to its goal of being one of the world’s largest restaurant businesses.
JFC said its unit Jollibee Worldwide Pte Ltd is set to pay US$12.8 million for 51 per cent of Milkshop, which runs the popular tea brand Milksha. The remaining 49 per cent of the business will be retained by one of Milkshop’s founders, JFC said, with the selling price to be confirmed after the deal is closed, subject to “certain closing conditions”.
The acquisition “gives JFC the opportunity to participate in this fast-growing beverage category and together with Milkshop’s founder, grow the Milksha brand globally,” according to the company’s disclosure filed to the Philippine stock exchange on November 4.
“Bubble tea has been gaining popularity across markets. First introduced in Taiwan in 1987, the bubble tea has since grown into a multibillion-dollar industry worldwide.”
JFC did not respond to a request from the South China Morning Post for further comments.