September 14, 2024 | 12:00am
MANILA, Philippines — Food giant Jollibee Foods Corp. (JFC) is bringing its premium milk tea brand to the United States, hoping to sip a cup of the demand for specialty beverages abroad.
In a disclosure to the Philippine Stock Exchange, JFC said that its units Milkshop Japan Inc. and MKSA LLC have signed a licensing agreement to open Milksha stores in the US.
As a result, Milksha – known for its premium boba teas – will be offered in three states initially:
California, New York and Texas.
JFC said franchising opportunities for other states would be made available through Milkshop, as the conglomerate aims to penetrate the emerging market for specialty beverages in the US.
JFC wants to expand its share in the beverage category, trusting Milksha to do the job.
JFC signed a deal to purchase 51 percent of Milkshop International Co. Ltd. for $12.8 million in 2021. Since then, the conglomerate behind Jollibee has bolstered the popularity of Milksha in the Philippines and abroad.
Apart from this, JFC has broadened the store network of Milksha, of which 93 percent is franchised. As of July, the number of Milksha stores was up by 24 percent to 327.
The majority of Milksha stores are located in Taiwan (305), while others are in Hong Kong (14), Australia (six) and the UK (two).
In the Philippines, Milksha’s branded beverages are sold in 162 stores of Chowking, also owned by JFC, accounting for 26 percent of Chowking’s network.
So far, Milksha has been able to deliver returns for JFC, generating $96 million in revenues and booking a healthy profit after tax in 2023.
On top of this, Milksha delivered cash dividends less than a year after acquisition, solidifying its financial position under the JFC banner.
Recently, JFC has ventured into blending fresh concepts for its beverage portfolio, starting with a new store located in Bonifacio Global City called Jollibrews.
The concept offers food and drinks that are usually found in coffee shops, setting up Jollibrews as a potential challenger to the McCafe of Jollibee’s rival McDonald’s.
In July JFC also acquired South Korean coffee brand Compose Coffee in line with the strategy to grow its presence in the international market for beverage products.
As of July, JFC manages 6,965 stores worldwide, of which 3,341 are in the Philippines and 3,624 are abroad, made up mostly of Jollibee (1,702) and Coffee Bean and Tea Leaf (1,197).
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