Jollibee Foods Corporation, one of the largest Asian food service companies, is acquiring a majority stake in the firm that owns popular Taiwanese bubble tea brand Milksha after having signed licensing agreements earlier.
In a disclosure to the Philippine Stock Exchange, the firm said its wholly owned subsidiary, Jollibee Worldwide, Pte. Ltd. will purchase shares equivalent to 51 percent ownership in Milkshop International Co. Ltd. for approximately US$12.8 million.
One of the co- founders of Milkshop will continue to retain the 49 percent ownership of Milkshop. Completion of this transaction is subject to certain closing conditions, and the final purchase price will be confirmed after closing.
Milkshop International, founded in Tainan City in Taiwan in 2008, is primarily involved in the development, operations and franchising of specialty tea shops under the trade names Milkshop and Milksha, a popular Taiwanese bubble tea brand.
Milkshop uses only high-quality milk, carefully- sourced tea and natural ingredients. It produces milk from its own dairy ranch and their bubble is free from chemical additives, preservatives and caramel color.
It has over 250 outlets, with 231 outlets in Taiwan, Hong Kong (4), Melbourne (2), Vancouver (2) and Singapore (12).
Total system wide sales for 2019 amounted to approximately US$66.5 million. In 2020, despite the pandemic, Milkshop generated system wide sales of US$74.7 million.
Milkshop is generating modest net income and positive earnings before interest, taxes and depreciation (EBITDA).
Bubble tea has been gaining popularity across markets. First introduced in Taiwan in 1987, the bubble tea has since grown into a multi-billion-dollar industry worldwide.
This gives JFC the opportunity to participate in this fast-growing beverage category and together with Milkshop’s Founder, grow the Milksha brand globally.
In June 2021, JFC announced that it will be bringing Milksha to Filipino consumers, the Philippines being home to one of the largest milk tea markets in Southeast Asia.
JFC and its subsidiaries, Fresh N’ Famous Foods, Inc. and Mang Inasal Philippines, Inc. now have the exclusive rights, through a licensing agreement with Milkshop, to sell and market products under the Milksha brand in their stores. Milksha products will soon be sold in Chowking stores.