JFC leverages milk tea for US inroad
JFC acquired 51 percent of Milkshop International Co. Ltd. in November 2021 for $12.8 million, giving it a foothold in the global beverage sector
Daily TribuneJFC acquired 51 percent of Milkshop International Co. Ltd. in November 2021 for $12.8 million, giving it a foothold in the global beverage sector
Jollibee Foods Corporation (JFC), which is fast growing as a global brand, has tapped into the growth potential of the United States beverage market with plans to open and operate Taiwanese bubble tea brand Milksha.
JFC said the plan will be enabled by a licensing agreement signed by its subsidiaries, Milkshop Japan Inc. and MKSA LLC.
The deal provides the group franchising opportunities in California, New York and Texas through Milkshop Japan Inc.
“Milksha is positioned as a craveable high-quality specialty beverage, which gives JFC the opportunity to participate in the fast-growing beverage category globally and, especially, in the USA,” JFC said in its disclosure.
JFC acquired 51 percent of Milkshop International Co. Ltd. in November 2021 for $12.8 million, giving it a foothold in the global beverage sector.
Since the acquisition, Milksha’s store network has grown by 24 percent, reaching 327 outlets worldwide as of July.
$96-M sales in 2023
Last year alone, Milksha generated $96 million in system-wide sales.
Locally, Milksha products are being sold in 162 Chowking stores through a separate licensing deal.
To date, JFC operates 6,965 stores globally, with 3,624 located internationally.
During the first half of the year, JFC saw a surge in domestic and international sales, which propelled a 28.9 percent increase in its six-month earnings, reaching P5.66 billion.
The homegrown firm led by tycoon Tony Tan Caktiong reported a 10.9 percent increase in revenue to P128.52 billion from January to June and system-wide sales of P182.6 billion, up 11.3 percent from last year.
Notably, the company’s first-half operating income rose by 20.6 percent to P9.16 billion, while EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) improved by 18.2 percent to P18.77 billion.