Jollibee Foods Corporation is making waves in the coffee market by acquiring a significant stake in the South Korean coffee chain, Compose Coffee. This move is part of Jollibee's strategy to grow its international presence and diversify its offerings. The acquisition will see Jollibee's subsidiary, Jollibee Worldwide Pte Ltd, take a 70% ownership of Compose Coffee for around $340 million. This deal is expected to enhance Jollibee's revenue and store count significantly.
• Jollibee will acquire 70% of Compose Coffee, with the rest held by Titan and Elevation.
• Compose Coffee is debt-free and has strong profitability margins.
• The acquisition will boost Jollibee’s international revenue contribution to 41%.
• Compose Coffee will become Jollibee’s largest brand by store count, nearing 10,000 total stores globally.
This acquisition is crucial as it strengthens Jollibee's foothold in the competitive coffee market, particularly in Asia. With this strategic investment, Jollibee aims to enhance its brand portfolio and expand its global reach, tapping into the growing demand for coffee and related products.
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