Jollibee acquires major shareholding in SoKor coffee chain

Jollibee Foods Corp. (JFC) is setting aside $340 million to acquire major shareholding in South Korean coffee chain Compose Coffee—a move that the homegrown fast-food giant said will be strategic in achieving its global expansion targets.

In a regulatory filing on Tuesday, JFC said the planned investment will cover the acquisition of 70 percent of Compose Coffee Co. Ltd. and JMCF Co. Ltd., collectively called Compose Coffee, through its subsidiary Jollibee Worldwide Pte. Ltd.

Titan Dining II LP will own 5 percent of the shares, while Elevation Equity Partners Korea Limited, a private equity firm focused on mid-market buyouts and growth capital investments in Korea and the rest of Asia, will control the remaining 25 percent.

“We believe that Compose Coffee is a compelling strategic fit for JFC and is on track to becoming the largest, fastest growing, and leading value coffee player in South Korea,” JFC chairman Tony Tan Caktiong said in the stock exchange report.

“Together with Elevation and Titan Fund II, we look forward to working with Compose Coffee's accomplished management team to further accelerate the company's growth in existing and new markets and capture the significant whitespace in South Korea’s value coffee market,” he added.

Compose Coffee and its roasting facility JMCF Co. Ltd. were founded in Busan in 2014. It was ranked first in the industry for having the highest growth rate in terms of the number of franchised stores with 2,470 fully-owned franchised stores. It had over 2,600 stores as of June 2024.

Compose Coffee and its roasting facility JMCF Co. Ltd. were founded in Busan in 2014. It was ranked first in the industry for having the highest growth rate in terms of the number of franchised stores, with 2,470 fully-owned franchised stores. It had over 2,600 stores as of June 2024.

JFC, the company behind brands like Jollibee, Highlands Coffee (primarily in Vietnam), Coffee Bean and Tea Leaf, Milksha, Chowking, and Mang Inasal, has allocated up to P23 billion for its capital expenditures this year. 

The investment aims to support the opening of approximately 750 stores, both owned and franchised.