Jollibee plans to acquire majority stake in South Korean coffee chain

02 Jul 2024 --- Philippine fast food company Jollibee Foods Corporation (JFC) is set to acquire a 70% stake in South Korea’s Compose Coffee to expand its coffee and tea business. Jollibee’s majority-owned Titan Fund will take 5%, while the remaining 25% will be held by private equity firm Elevation.

Compose Coffee was established in Busan, South Korea, in 2014 and is expected to be Jollibee’s most prominent brand in terms of the number of outlets, increasing its store network to closer to 10,000. More than 66% of these will be outside the Philippines.

“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’s chairman Tony Tan Caktiong said in the firm’s disclosure.

The coffee chain currently has 2,612 stores in South Korea. In addition to coffee, the outlet sells traditional Korean treats like Binsoo (a traditional Korean dessert) and One Pound Pang, a specially crafted Korean bread that is light and fluffy, slightly sweet and soft, airy, often consumed with a beverage.

Business moves
JFC’s coffee and tea brands include Coffee Bean and Tea Leaf, Common Man Coffee Roasters and Highlands Coffee.

The company operates various fast food chains and coffee shops in the Philippines and has over 6,000 stores globally.

JFC commenced expansion into the tea and coffee segment by acquiring a 50% share of Vietnam’s Highlands Coffee before taking a controlling interest in 2017. It acquired the US-based Coffee Bean and Tea Leaf in 2019.

In March, the company invested US$28 million in a 10% stake in beverage tech company Botrista, to tap into its technological capabilities.

The fried chicken giant also previously partnered with Cargill to build and operate a poultry processing plant in the Philippines.