Singapore-based Southern Capital invests in Coffee Bean & Tea Leaf

The Coffee Bean & Tea Leaf in the Philippines, one of the largest specialty coffee and tea retail chains in the country operated by The Table Group, has secured a strategic investment from Singapore based Southern Capital, a leading private equity firm that focuses on high growth middle market businesses in Southeast Asia.

Terms of the deal have not been made public, but Southern Capital has a successful track record of acquiring and growing businesses with enterprise values of between $50 million to $200 million.

Notable business leaders such as Menardo Jimenez (founding father of the GMA Network) and Victor del Rosario (executive vice president, Phinma) are major shareholders in The Table Group, which represents a diversified portfolio of companies across the food and beverage value chain, including Filipino home grown brands like Nono’s and The Blue Kitchen.

The Coffee Bean & Tea Leaf continues to grow rapidly in the Philippines, ending 2019 with 158 retail units in various formats nationwide. Net unit growth rate will continue at a minimum of 15 percent in 2020 following a robust double digit same store sales performance in the fourth quarter of 2019. The Philippines represents the second largest franchise territory for The Coffee Bean & Tea Leaf worldwide, trailing only South Korea, which has over 300 units.

The equity investment by Southern Capital represents their first in the Philippines, and their partnership with The Table Group includes the business of consumer packaged goods distribution under The Coffee Bean & Tea Leaf brand.

“Southern Capital is committed to supporting The Coffee Bean & Tea Leaf’s strong management team in its goals for sustainable expansion in the Philippines,” says Eugene Lai, managing director and co-managing partner of Southern Capital. “We see significant growth potential in the market and a tremendous opportunity to capitalize on the strength of our brand position, especially in CPG channels.”

An iconic Southern California brand that was founded in 1963, The Coffee Bean & Tea Leaf operates over 1,200 units worldwide across 20 countries.