THE Philippine operator of California-based Coffee Bean & Tea Leaf (CBTL) has partnered with Singaporean firm Southern Capital the details of which have yet to be disclosed by the partners.
“We are incredibly fortunate to be partnering with some of the brightest minds in the region, but more importantly, our collaboration is forged out of common values most important to us that are anchored in faith, resilience and humility,” Table Group, Inc. Chief Executive Officer Walden Chu said in a statement.
“Alongside the Jollibee (Foods Corp.)’s recent acquisition of the global brand, we are truly excited for what we can accomplish together to shape the future of the industry,” he added.
The deal between JFC and CBTL was closed September 2019.
Details of the investment were not yet disclosed, but this is considered to be Southern Capital’s first venture in the Philippines, which also includes the distribution of consumer packed goods under the CBTL 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,” Eugene Lai, managing director and co-managing partner of Southern Capital, said.
“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,” he noted.
Southern Capital has a track record of developing businesses with enterprise value ranging between $50 million to $200 million.
CBTL is a Southern California-coffee shop brand, which was founded in 1963. It operates 1,200 units across 20 countries. As of end-2019, it has 158 retail units across the country, making it the second country with the most number of franchise, following South Korea with more than 300 units. Its net unit growth rate is at a minimum of 15% this year due to robust growth of its stores sales in the last quarter of 2019.
Its local operator, Table Group, has a diversified portfolio of food and beverage brands, which include home-grown brands like Nono’s and The Blue Kitchen. — Vincent Mariel P. Galang