JFC, led by president and CEO Ernesto Tanmantiong, initially signed a deal to purchase 51 percent of the Taiwanese bubble tea chain Milkshop International Co. Ltd. in the midst of the COVID-19 pandemic in November 2021 for $12.8 million.
US growth opportunities
The acquisition included Milkshop Japan, while MKSA LLC, a Delaware-based entity, was set up to manage US operations of Milksha® stores.
The deal allows allows Jollibee and Milksha, a premium beverage brand, a solid foothold in the growing global beverage market, especially in the US.
Franchise-dominated network
Since the acquisition, the Milksha network, which is 93 percent franchised, has expanded by 24 percent, reaching 327 stores by July 2024.
The majority are in Taiwan (305), with additional locations in Hong Kong (14), Australia (6), and the United Kingdom (2). In the Philippines, 162 Chowking outlets also offer Milksha products under a licensing deal.
Rapid expansion
Last year, Milksha generated about $96 million in systemwide sales, reflecting a 30-percent increase from pre-acquisition levels.
“[N]oteworthy to mention that Milksha delivered cash dividends less than one year from acquisition date. This once again proves JFC’s success in growing and scaling its acquired brands,” JFC said.
Global expansion
As of July 2024, JFC’s global store network grew by 4.8 percent year-on-year, totaling 6,965 stores—3,341 in the Philippines and 3,624 internationally.
The largest brands include Jollibee with 1,702 outlets, CBTL with 1,197, Highlands Coffee with 797 (mostly in Vietnam), and Chowking with 615 stores globally.
