JOLLIBEE PLUNKS DOWN $28M IN US DRINKS FIRM
The homegrown fast-food giant Jollibee Foods Corp. of tycoon Tony Tan Caktiong has taken an interest in a US-based beverage technology developer as it continues to bet on the growth of its coffee and tea business.
In a stock exchange filing on Wednesday, Jollibee said it would shell out $28 million for a 10-percent ownership stake in Botrista Inc., a company known for providing “all-natural” ingredients for craft drinks through beverage technology development.
Singapore-based subsidiary Jollibee Worldwide Pte Ltd. will be the lead investor. It will fund the acquisition through its surplus cash, Jollibee said.
“Botrista is a game changer for the beverage industry,” Jollibee chair Tony Tan Caktiong said in a statement. “We are excited to invest in a company that creates excellent and innovative products enabling food service operators to deliver a worldclass customer experience and providing a substantial runway for sustained growth.”
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According to Jollibee, its investment will support Botrista’s market expansion outside the United States, increase production capacity and fund ingredient supply chain development.
Jollibee noted that its investment could help expand beverage options for consumers through “innovative and sustainable platform and technology,” allowing it to tap the $3-trillion global addressable market for the industry.
“This gives [Jollibee] an opportunity to leverage Botrista’s technological capabilities, which will create significant learnings and synergies that will further enhance [Jollibee’s] competitive advantage,” the company said.
Jollibee in 2019 acquired American specialty beverage brand The Coffee Bean & Tea Leaf (CBTL) via a $350-million deal, making it the company’s largest multinational acquisition.
This is Jollibee’s second coffee and tea venture after taking a controlling interest in Highlands Coffee in 2017.
The fast-food group had 1,164 CBTL stores and 779 Highlands Coffee stores as of end-2023.
This year, Jollibee aims to open up to 750 new company-owned and franchised outlets, with a P20-billion capital spending budget.