Asia’s leading fastfood company Jollibee Foods Corp. is investing $100 million in a Singapore-based holding company to acquire 100% of The Coffee Bean & Tea Leaf (CBTL) specialty coffee and tea brand.
As of the end of 2018, the Los Angeles- based Coffee Bean had a total of 1,189 branches, of which 284 are in the US, 447 in Southeast Asia (Philippines 139, Indonesia 101, Malaysia 99, Singapore 61), 336 in other Asian countries (South Korea 292) and 122 in other regions (Kuwait 36, Qatar 28, India 27).
“The acquisition of The Coffee Bean brand will be JFC’s largest and most multinational so far with business presence in 27 countries. This will add 14% to its global system wide sales, 26% to its total store network, will bring international business contribution to 36% of worldwide sales and will bring JFC closer to its vision to be one of the top 5 restaurant companies in the world in terms of market capitalization,” said Tony Tan Caktiong, chairman of JFC.
Known for its original ice blended coffee and tea drinks, CBTL chalked up $313 million in revenue and $23.7 million in EBITDA as of the same period.
“Combined with Highlands Coffee, with business mostly in Vietnma, this acquisition will enable JFC to become an important player in the large, fast growing coffee business,” Tan Caktiong said.
It uses only hand-roasted coffee beans and hand-blened teas from farms in various countries like Costa Rica, Colombia, Kenya, Indonesia, jamaica, Thailand and Sri Lanka.
CBTL also sells a variety of whole bean coffees, whole leaf teas, flavoured powders and baked food.