MANILA, Philippines – Filipino global food chain Jollibee Foods Corporation (JFC) is acquiring 70% of Compose Coffee, among South Korea’s most popular low cost coffee stores.

JFC said it acquired the shares for $340 million (around P20 billion). Private equity firms Titan Dining II LP and Elevation Equity Partners Korea Limited retain 5% and 25% of Compose Coffee, respectively.

Compose Coffee is the fastest growing coffee chain in South Korea, with 2,470 franchised stores. It boasts the largest in-house coffee roasting plant in Korea, which enables it to distribute specialty beans at low cost.

The company, with V of BTS as brand ambassador, also boasts of a debt-free balance sheet, “superior cash returns and excellent profitability margins.”

JFC said Compose Coffee is the biggest acquisition in terms of number of stores, bringing the group’s total store network closer to 10,000 stores. More than 66% of JFC’s stores are already outside the Philippines.

Compose Coffee and its roasting facility JMCF Co. Ltd. were founded in Busan in 2014. The brand was named South Korea’s favorite coffee shop at the 2023 Korea’s Most Loved Brand Awards, an event organized by Forbes Korea and sponsored by South Korea’s Ministry of Science and ICT and Ministry of Trade, Industry, and Energy. 

“The business that Compose Coffee has built in the past 10 years is impressive and we are excited to play a major role in its next phase of growth. We believe that Compose Coffee is a compelling strategic fit for JFC and is on track to becoming the largest, fastest growing and leading value coffee player in South Korea,” said JFC chairman Tony Tan Caktiong. – Rappler.com