Jollibee Foods Corporation Archives

Manila, Philippines – Jollibee Foods Corporation (JFC) has announced that is acquiring a majority stake in Compose Coffee, a South Korean coffee chain. According to a recent disclosure from JFC, the group shall acquire a majority shareholding of effectively 70% in said coffee chain. The rest of Compose Coffee’s shareholders are Titan Dining II LP (5%) and Elevation (25%).

Moreover, the total consideration for the acquisition is approximately US$340m (~KRW470b). JFC closed this deal at a more favourable transaction multiple compared to average EV/EBITDA multiple in the coffee industry. Completion of this transaction is subject to closing and financing conditions, final purchase price to be confirmed thereafter.

JFC notes that the acquisition is aligned with JFC’s commitment to Coffee and Tea Segment and franchising initiatives. This strategic, rapid growth, financially lucrative investment serves as JFC’s gateway in unlocking the fast-growing international value coffee market in South Korea which ranks third globally in terms of coffee consumption per capita.

Tony Tan Caktiong, chairman at Jollibee Foods Corporation, said, “The business that Compose Coffee has built in the past 10 years is impressive and we are excited to play a major role in its next phase of growth. 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.”

He added, “Together with Elevation and Titan Fund II, we look forward to working with the 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.”

It is worth noting that JFC has made significant investments to multiple food franchises in Asia, including Singapore’s Tiong Bahru Bakery and Common Man Coffee, as well as China’s Tim Ho Wan.

Philippines – The Department of Trade and Industry (DTI) has formed a partnership with Jollibee Foods Corporation (JFC) and the Jollibee Group Foundation (JGF) to promote the growth of Filipino micro, small, and medium-sized companies (MSMEs).

The DTI stated that on April 17, a memorandum of agreement was signed with JFC and JGF, formalising the collaboration. Its objective is to provide MSMEs with the necessary expertise and abilities to improve their business operations. The Jollibee Plaza Building in Ortigas, Pasig City, is where the MSMEs-focused learning sessions are set to start on April 25.

The partnership seeks to foster relationships between MSMEs and major firms in accordance with the principles delineated in Republic Act 9501, which is commonly referred to as the Magna Carta for MSMEs. Small and large firms are expected to develop synergistic ties as a result of this interaction.

Speaking about the partnership, Alfredo Pascual, DTI Secretary, said, “This MOU symbolises a partnership built on shared values, mutual respect, and a common goal. It is a testament to our collective belief in the private and public sectors in the transformative power of entrepreneurship and the profound impact it can have on individuals, families, and communities.”

Meanwhile, DTI said, “Echoing DTI’s goals, Jollibee expressed its dedication to sustainable business practices through its ‘Joy for Tomorrow’ agenda. Crucial to a flourishing MSMEs ecosystem, this program focuses on the pillars of Food, People, and Planet, with a particular emphasis on supporting farmers’ livelihoods and community welfare.”

Singapore – Jollibee Foods Corporation (JFC), through its wholly-owned subsidiary Jollibee Worldwide Pte. Ltd., (JWPL) has announced an increase in stake with private equity fund Titan Dining LP which owns the Tim Ho Wan brand and company-owned stores.

In a recent stock filing by the corporation, JFC said that its fund size of Titan will increase from its current S$350m to S$450m in order to fund the store expansion plans and working capital requirements of Tim Ho Wan and the completion of other projects by the equity fund.

Moreover, JWPL’s participating interest in Titan will also increase from 90% to 92% through purchase of 2% participating interest of another limited partner in the fund for a total consideration of S$7.7m.

With the increase in fund size, JWPL’s total commitment to the fund shall amount to S$414m.

It is worth noting that JWPL has invested S$45m with Titan since 2018 to own a 45% participating interest in Titan. It then increased its capital commitment to S$120m and its fund size increasing from S$100m to S$200m in 2019.

JFC has also a joint venture with Titan for the operation of Tim Ho Wan in China, as well as the operations of Tiong Bahru Bakery and Common Man Coffee Roasters in the Philippines through Titan’s Food Collective, Pte. Ltd. (FCPL) subsidiary.

Philippines – Dentsu Philippines has been selected as the integrated media agency of record for Jollibee Foods Corporation (JFC) to grow the company’s brand awareness and market share.

Jollibee Foods Corporation is the parent company of the Filipino fast-food restaurant chain, Jollibee. The company was founded in 1975 and has now established 18 brands and over 6,300 stores across 34 countries.

David Cruse Beal, global chief marketing officer of JFC, said, “We are energized by the ‘one dentsu’ proposition presented by dentsu Philippines and the digital expertise and talent presented by Merkle Singapore. We look forward to working with the Dentsu team and leveraging shared media tools and systems to accelerate our customer journeys.”

Mako Chaves, managing director,media, for dentsu Philippines, shared that it is a privilege for them to work with JFC and that they are confident of what they can do for the company.

“It is a privilege to work with JFC’s home-grown brands, including Jollibee, Mang Inasal, Chowking, and Red Ribbon and to help them with their very ambitious growth plans. With our expertise in digital marketing and transformation, access to human insight and point of purchase motivation as well as long-term planning and buying acumen. I am confident we will help them grow brand awareness and market share,” said Chaves.

JC Catibog, CEO of dentsu Philippines, further commented, “This monumental win is testament to the dentsu value of radical collaboration, where we employ a borderless team based on where the specialization of the practice pillars relevant to JFC reside.”

“Our promise is to deliver agility and efficiency with this operating model that consistently brings the best of the dentsu network to all of the JFC brands. The media business further strengthens the JFC-dentsu relationship, adding to its current creative remit for Chowking, Mang Inasal, and Milksha, as well as global technology solutions assignments with Merkle Singapore,” he added.

Hong Kong – Jollibee Group, the company behind Philippine-grown restaurant brands Jollibee, Chowking, and Greenwich has opened Mainland China’s first-ever Tim Ho Wan in Shanghai.

In November 2019, the joint venture between Jollibee Foods Corporation (JFC) and Tim Ho Wan’s operator Dim Sum Pte. Ltd was formed.

The restaurant has been Michelin-starred and is often dubbed as the cheapest one within such distinction. Its popular dishes include the signature baked BBQ pork buns, rice rolls, pork & shrimp dumplings, and the pan-fried radish cake.

It will be located in integrated development Jing An Kerry Centre in Shanghai’s Jing’an District.

Jollibee Group CEO Ernesto Tanmantiong revealed that the group intends to open 100 restaurants in the country in the next 5 years.

“Opening in Shanghai, one of the busiest global hubs, is an excellent starting point for our expansion plans for Tim Ho Wan in Mainland China,” commented Tanmantiong.

He also said, “The core of Tim Ho Wan is to serve delicious authentic Hong Kong dim sum to more people at a good value for money, and this is why we believe that Tim Ho Wan is a great addition to the Jollibee Group’s portfolio.”

According to the group, its initial opening has been met with a large flock of customers.

Jollibee Foods Corporation China Chairman Carl Tancaktiong said, “Given the response we are seeing, we are planning to open the second store by the end of this year. Aside from Shanghai, we will also open in Beijing, Shenzhen, and Guangzhou.”

Jollibee Group’s portfolio of restaurants span operations in 35 countries including United States, Canada, Singapore, and United Arab Emirates.