Jollibee Foods Corporation (JFC), the Filipino fast-food giant, is set to introduce one of its popular beverage brands to the United States as part of its strategy to expand in the competitive specialty drinks market.
On Friday, JFC announced that its subsidiary, Milkshop Japan Inc., has granted Delaware-based MKSA LLC—the JFC unit responsible for U.S. operations—the rights to open and manage Milksha stores in California, New York, and Texas. Milksha, a Taiwan-based milk tea brand, is known for its premium-quality beverages.
“Milksha is positioned as a crave-worthy, high-quality specialty drink, giving JFC the opportunity to enter the fast-growing beverage market, particularly in the U.S.,” JFC stated in a disclosure to the stock exchange.
JFC first acquired a controlling stake in Milksha’s parent company, Taiwan-based Milkshop International Co. Ltd., in November 2021, investing $12.8 million. As part of the deal, JFC gained control of Milkshop Japan. To spearhead U.S. expansion, MKSA LLC was established specifically to oversee Milksha’s operations in the country.
The acquisition was finalized in February 2022, making Milksha part of JFC’s multi-brand portfolio. Since then, Milksha has experienced significant growth, expanding its store count by 24 percent to reach 327 locations worldwide.
Taiwan remains the brand’s largest market with 305 outlets, followed by 14 stores in Hong Kong, six in Australia, and two in the United Kingdom. In the Philippines, Milksha beverages are offered in 162 Chowking stores under a separate licensing agreement, though franchising has not yet been introduced in the country.
In 2023, Milksha generated $96 million in systemwide sales, a notable 30 percent increase from the previous year. This growth reflects JFC’s aggressive expansion into the global beverage sector.
JFC’s foray into the specialty drinks market began in 2012 with the acquisition of a 50-percent stake in Vietnam-based Highlands Coffee, later increasing its ownership to 60 percent. In 2019, JFC expanded further by acquiring The Coffee Bean and Tea Leaf (CBTL) for $350 million, marking one of its largest investments.
The company’s beverage portfolio is set to grow further with its $340-million acquisition of South Korean coffee brand Compose Coffee. The deal, which involves a 70 percent stake in the chain, is expected to increase JFC’s store network by 2,470 branches, bringing its total number of global outlets to nearly 10,000.
As of today, JFC operates 6,965 stores worldwide, with its flagship Jollibee brand contributing 1,702 outlets. CBTL adds 1,197 stores, while Highlands Coffee has 797.
With its latest move, JFC continues to strengthen its presence in the global beverage market, leveraging the popularity of Milksha’s Taiwan milk tea to tap into the growing demand in the United States.
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