Jollibee Foods Corp. set its sights on the multibillion-dollar milk tea industry as it looks to acquire popular Taiwanese milk tea brand Milksha.
In a disclosure to the Philippine Stock Exchange, the fast-food giant reported it would be purchasing a majority stake in Milkshop International Co. Ltd. which owns Milksha, for approximately $12.8 million.
JFC publicly announced in June 2021 it would bring Milksha to the milk-tea crazy consumers. That said, JFC and its subsidiaries, Fresh N’ Famous Foods Inc. and Mang Inasal Philippines Inc. now have exclusive rights to sell products under the Milksha brand in its stores.
Once the acquisition is complete, one of Milkshop’s co-founders will retain 49% of ownership.
The milk tea maker, which used the moniker “Milksha” when it entered the international market, has over 250 shops in Taiwan. It also has outlets in Melbourne, Vancouver and Singapore.
The milk tea firm was founded in Tainan City in Taiwan back in 2008. Milk used for its bubble teas is produced from its own dairy ranch.
Despite the pandemic, the Taiwanese milk tea maker generated $74.7 million in sales in 2020, which expanded by 12% year-on-year, according to JFC.
This is one of the many international forays that JFC embarked on in the past decade. Days ago, it signed a franchise agreement with a Japanese fast-food chain Yoshinoya which will enable JFC to own and operate the existing stores around the country.
Shares at JFC climbed up 2.59% at P238 apiece by the time trading closed on Thursday.