Jollibee mulls over sale of minority stakes in Highlands Coffee

December 07, 2022 | 10:11
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Jollibee Food Corporation is in talks to sell a minority stake in the Vietnamese coffee chain Highlands Coffee.
Jollibee mulls over sale of minority stakes in Highlands Coffee

As reported by Reuters, Jollibee is considering the sale of a 10-15 per cent stake in Highlands Coffee. The Vietnamese coffee chain could be valued at over $800 million in the prospective sale.

Sources close to the matter said the transaction might result in the coffee chain's IPO, which Jollibee has been taking into consideration for several years.

Jollibee made a minor investment in Highlands Coffee a decade ago before taking a controlling interest in the company. Highlands Coffee established 37 stores in the three months that concluded on September 30 to achieve 562 locations in Vietnam. The brand significantly contributed to Jollibee's 47 per cent increase in overseas sales.

Pre-pandemic, Jollibee has lauded the potential of Vietnam. The country is expected to be a large consumer because of the population demographics and opportunities to grow.

With the expansion of international and local coffee chains, Vietnamese consumers have even more choices for coffee. Surpassing Starbucks, local franchise Highland Coffee is the leading coffee-shop chain in Vietnam based on earnings, according to market research firm Statista.

Since 2020, the pandemic and its related restrictions across Vietnam have led to a decrease in out-of-home coffee consumption. Consequently, several major coffee chains in the country have reported a much lower profit during this time. However, the Vietnamese coffee market is forecast to recover strongly along with the economy.

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By Thanh Van

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