Tag: bubble tea

  • Vietnam third largest market for bubble tea in Southeast Asia

    Vietnam third largest market for bubble tea in Southeast Asia

    Turnover of the Vietnamese bubble tea market hit $362 million in 2021, ranking third among six major Southeast Asian markets, according to a recent study.

    The region’s largest market was Indonesia with an estimated $1.6 billion annual turnover. Thailand came in second with $749 million, according to a study by Singapore-headquartered venture outfit Momentum Works and digital payments solution firm Qlub.

    Turnover in the Southeast Asian market last year accumulated to $3.66 billion, it added.

    As of April 2022, Vietnam had 439 bubble tea shops, with over half located in Ho Chi Minh City, a survey by German data portal Statista and Vietnamese market researcher Q&Me showed.

    Bobapop, a local brand, was the leader in terms of locations with 89 stores.

    It was followed by three foreign players, Tiger Sugar (48 stores), The Alley (47) and Gong Cha (42).

  • Leading milk tea brands plot Australian expansion

    Leading milk tea brands plot Australian expansion

    Major milk tea brands Gotcha and Chatime have disclosed Australian expansion plans and their focus during the next few years.

    The assistant MD of Gotcha, Christy Chen said that the brand is set to open 20 new stores by the end of the year.

    “Gotcha will continue to focus on the interior of our stores to deliver an elevated level of design,” Chen said.

    Launching in 2018, the brand now operates more than 20 stores across the country. Gotcha aims to expand to Saudi Arabia, New Zealand and Singapore this year, and is expanding its store network in Indonesia.

    “We are very confident the bubble-tea market will continue to grow, especially as we expand into international regions.”

    Meanwhile, rival Chatime, said it will add 29 more stores to its existing 126 franchises in Australia this year.

    “As of right now, we currently have over 50 percent of our target locked in,” said Andrew Benefield, chief development officer at Chatime.

    The company expects the market will consolidate to just two to three key players including itself. Chatime’s goal is to hit 250 stores across the country during the next five years. At the same time, it will shift its focus to be more environmentally friendly and reduce plastic waste.

    “Chatime is currently working on Project Happy Turtle, which aims for us to completely eradicate single-use plastic within our stores across Australia,” Benefield said. “We’ve tried this through the introduction of reusable bubble-tea cups, as well as paper straws across the network.”

  • Taiwan’s Chun Fun How opens new outlet in Singapore

    Taiwan’s Chun Fun How opens new outlet in Singapore

    Taiwanese bubble-tea chain Chun Fun How is preparing to launch a flagship store at the Esplanade in Singapore this month.

    The floral-themed store will offer takeaway drinks only in its new outlet – mostly premium fruit tea blends in attractively designed “Instagrammable” cups – with a heavy emphasis on sanitization as the coronavirus outbreak continues. The brand is expected to be offering new drinks and menu items exclusive to the Singapore market.

    The brand is known for its low profile in Taiwan, with the majority of its stores targeting students and local business people rather than tourists.

    Chu Fun How has 14 outlets within Taiwan, a franchise outlet in both Hong Kong and Canada, and plans to expand in Indonesia as well as Singapore.

  • Bubble-tea chain The Whale debuts in Singapore

    Bubble-tea chain The Whale debuts in Singapore

    Bubble tea chain The Whale has opened its first outlet in Singapore.

    The Nanjing-based brand opened the first franchise in the territory in a basement takeaway kiosk at Lot One Mall in Choa Chu Kang. It is known for its unusual blends, including the Brown Sugar Avocado and Volcanic Sapphire Whale drinks.

    The brand’s marketing and business development manager Clement Low revealed a broad-ranging expansion strategy for The Whale, telling local media outlet 8 Days that the company plans to expand across Singapore.

    “We are currently looking for space where we can have dine-in seats,” said Low.

    The Whale will open its second outlet at City Square Mall, Farrer Park within a fortnight, and a third at Chinatown’s China Square Central next month. A fourth outlet will launch at Rivervale Mall in Sengkang towards the end of the year.

    The Whale’s Singapore partner also operates Thai eatery chain Gu Thai Noodle Cafe.

  • Bubble-tea chain Milksha opened  in Australia

    Bubble-tea chain Milksha opened in Australia

    Taiwanese bubble-tea chain Milksha has opened a flagship store in Melbourne, Australia.

    The store is the Milkshop brand’s first flagship in Australia. It operates 240 locations in several Asian countries.

    The brand is known for its use of fresh milk rather than creamer.

    “Those familiar with the Milksha brand know that it’s a premium bubble tea brand,” said Milkshop International GM Peter Huang. “We chose Melbourne to launch our flagship store because it is no doubt the foodie capital of Australia. The city is a melting pot of different cultures open to trying new products, which can be seen in its established and growing market of bubble-tea lovers.”

    The firm is partnering with local supplier St David’s Dairy for fresh milk.

  • Travellers Can Now Order Boba Milk Tea On AirAsia Flights

    Travellers Can Now Order Boba Milk Tea On AirAsia Flights

    AirAsia Thailand recently introduced bubble milk tea in their in-flight menu – much to the delight of customers. There’s even a poster that says that passengers can now enjoy Boba milk tea 35,000 feet in the air.

    You’ve probably come across articles on how unhealthy bubble tea drinks can be, due to its sugar intake, sweeteners and artificial flavourings. To combat that, AirAsia Thailand has come up with a healthier option flyers.

    Enter AirAsia’s milk tea with konjac bubbles. According to Google, konjac (also known as konnyaku and devil’s tongue) “is high in fiber and has almost no calories”. Made from the root of a plant, some of its alleged health benefits include helping people to lose weight.

    Its boba also come in diamond shapes. There is only 1 flavoured bubble tea on the menu for the time being though.

    Priced at ฿75 (RM10), it is available on AirAsia Thailand and AirAsiaX Thailand flights.

  • Taiwanese bubble-tea brands caught in Hong Kong protest backlash

    Taiwanese bubble-tea brands caught in Hong Kong protest backlash

    Internet users on the Chinese mainland have blacklisted popular Taiwanese bubble-tea brands after a Hong Kong franchise urged solidarity with street protesters in the Asian financial hub.

    The online furore began when Yifang Fruit Tea, a maker of the tea-based drink, closed one of its Hong Kong shops for a day and put up a sign that said in Chinese: “Stand together with Hong Kongers”.

    Photos of the sign circulated on mainland social media this week, angering users who accused the firm of backing Hong Kong independence. Calls for a boycott spread to other Taiwanese bubble tea brands like Gong Cha, HeyTea, CoCo and A Little Tea.

    Yifang and the others were blacklisted by users of China’s microblog Weibo. A white list promoted “good” brands.

    “Rest assured, I won’t spend another cent on you. Yifang is rubbish,” a Weibo user named ProfiteroleK wrote in a comment that received more than 1500 likes.

    Hong Kong is facing its worst crisis since returning to China from British rule in 1997, as sometimes violent protests since June against a now-suspended extradition law have become a direct challenge to the city’s government and Beijing.

    Bubble tea was invented by Taiwan, a self-ruled island considered by Beijing as a renegade province. On the mainland, Weibo posts containing the hashtag “Taiwanese bubble tea shops” were read 350 million times in recent days.

    The run-in with Chinese social media users is another example of how companies can get caught in political issues.

    In January, Apple and Amazon were called out by a mainland state think-tank for “incorrect” Taiwan and Hong Kong references.

    The mainland franchisee of Yifang Fruit Tea said in social-media posts the company fired the part-time staff who put up the notice and permanently closed the outlet.

    However, Amigo Cheung, the brand manager of the Yifang franchise in Hong Kong, told Reuters by phone that nobody had been dismissed yet and no outlet had been shut.

    HeyTea and Gong Cha, on their social media accounts, affirmed their support for “One Country, Two Systems” or “One China”, in hopes of distancing themselves from the backlash.

    Fellow Taiwanese bubble-tea brands CoCo and A Little Tea could not be reached for comment.

    Taiwan President Tsai Ing-wen wrote in a Facebook post this week that “China’s political power has invaded into various nonpolitical areas,” citing tea as an example.

    “For people living in a society with freedom and democracy, we need to stay on high alert for issues like this,” Tsai wrote, along with a picture of a cup of ice fruit tea.

    Jennie, a mainland student studying at a Hong Kong university, said she had sympathy for protesting students but also felt caught in the middle.

    “Seeing the locals around disliking mainland people so much, I fear I’ll be driven out (from Hong Kong) by them in the future,” she told Reuters.

  • Bubble-tea chain Milksha opening Stores in Singapore

    Bubble-tea chain Milksha opening Stores in Singapore

    Taiwanese bubble-tea chain Milksha is opening two outlets in Singapore by the end of this month.

    The first flagship outlet will open at Suntec City Mall, and a second in Funan mall, which is scheduled to open on the 28th.

    Known as Milkshop in Taiwan, and Milksha outside of Taiwan, the chain has five signature products: Azuki Matcha Milk, Fresh Taro Milk, Refreshing Orange Green Tea, Earl Grey Latte with Honey Pearl and Valrhona 100% Cocoa Milk.

    The brand is also known for its honey pearls, which are made in Taiwan and frozen using ‘quick-freeze’ technology to maintain the texture of the pearls, before being flown to Singapore.

    The local outlets will offer four varieties: Fresh Milk Series, Fresh Milk Tea Latte Series, Premium Tea Series and Special Concoctions.

    Milksha currently has more than 230 outlets in Taiwan, 20 in China and two in Hong Kong.

  • Chicha San Chen opens in Singapore

    Chicha San Chen opens in Singapore

    Taiwanese bubble-tea chain Chicha San Chen has opened its first outlet in Singapore.

    Located in 313@Somerset, the flagship store has modern design with an open kitchen.

    Customers can make their own tea and watch as it brews in a Teapresso machine.

    They can choose from milk-tea, fruit-tea or pure-tea bases including Green Tea, Osmanthus Oolong Tea, High Mountain Pouchong Tea, Black Tea, Dong Ding Oolong Tea and Cassia Black Tea.

    The store also features a tea appreciation counter where tea connoisseurs can learn more about teas and sample the special Taiwanese Lishan Qingxin Oolong Tea.

    Established in Taichung 20 years ago, Chicha now has more than 200 stores in Taiwan and China.

    Chicha has its own tea plantations in Taiwan, where they harvest their tea leaves and other ingredients.

  • Malaysian bubble-tea chain Tealive Eying IPO

    Malaysian bubble-tea chain Tealive Eying IPO

    Loob Holding, parent of Malaysian bubble-tea chain Tealive, is preparing an IPO in Malaysia with a view to raising MYR300 million (US$72 million).

    The firm, which operates more than 200 food-and-beverage outlets in the territory, has reportedly hired advisors to facilitate the process and is seeking a valuation of up to MYR1 billion.

    “We have engaged corporate advisers for this exercise,” said Loo’s CEO Bryan Loo. “We cannot confirm the valuation sought nor the IPO portion, pending final recommendations from our advisers.”

    New listings have been slow off the mark this year, with only $9.4 million in first-time sales so far compared to $47.8 million during the same period last year. Several retail businesses are expected to list shortly, including Malaysia KFC operator QSR Brands and home improvement chain Mr DIY.

  • Gong Cha to open world’s first bubble-tea funhouse

    Gong Cha to open world’s first bubble-tea funhouse

    Gong Cha will team up with Tokidoki to create the world’s first bubble-tea funhouse at Singapore Shilin night market.

    The Tokidoki-themed bubble-tea funhouse will bring three new flavours including Rosa Latte, Berry Biscotti, Bambu Boba, served in Tokidoki co-branded cups.

    Boba enthusiasts can also treat themselves to bubble tea-inspired desserts such as Boba Pancake, and Earl Grey Milk Tea Ice Cream.

    There will also be two limited-edition Tokidoki x Gong Cha-merchandised tumbler and sleeve for the first 500 customers daily.

    At a DIY station, customers can customise their own drinks.

  • Happy Lemon teashop showcases Alibaba tech

    Happy Lemon teashop showcases Alibaba tech

    Taiwanese bubble-tea chain Happy Lemon has teamed up with Koubei, Alibaba Group’s local-services app, to upgrade its in-store technology, including a new drink-making robot. At its pilot “smart store” in Shanghai, customers have the option of buying their drinks at a counter manned by employees or, for a fully automated experience, purchasing via their smartphones for service by the robot. Customers scan a QR code with the Koubei app, tick a few boxes to customise their drink, then wait for a text notification to pick up their tea at a smart locker, which opens when they tap a “pick-up” button on the app.

    The robot can make eight types of drinks with about 40 variations based on customer preferences for different amounts of ice and sugar – each taking about 90 seconds, Koubei said.

    “The smart-store initiative is part of our journey to bring New Retail to food and beverage merchants,” said Guo Haodang, head of Koubei’s smart-store program. “We bring advanced technologies, such as our QR codes, intelligent pick-up lockers and robotic tea mixers, to merchants’ brick-and-mortar stores, helping the sector rethink how they sell and engage with consumers.”

    Koubei and Happy Lemon’s tea-making robot can serve up drinks in 90 seconds.

    Koubei and Happy Lemon’s tea-making robot can serve up drinks in 90 seconds.

    Happy Lemon, which operates more than 1000 stores worldwide, including in the US, Canada, the UK and South Korea, is the latest company to join the smart-store program. Launched in 2017, there are now about 100 brands that have partnered with Koubei to upgrade their brick-and-mortar locations with in-store technology, such as features that allow consumers to pre-order by mobile app and skip queues. Other brands that have signed on include the century-old Chinese restaurant chain Wu Fang Zhai, Hong Kong traditional sweets maker Honeymoon Dessert and pastry chain Kengee.

    Daniel Lee, deputy GM of global marketing at Happy Lemon, said that high employee turnover can lead to drinks being made inconsistently. The robot, which knows right ingredients and amounts, is the perfect solution to that problem, he said.

    Happy Lemon is working with Koubei to replicate this model at more of its stores across China, according to a statement from the local-services app.

    A Happy Lemon customer uses the Koubei app to place his order.

    “Aside from hardware innovations like with the robotic tea mixer, what’s more important to us are the big-data applications behind it,” said Lee, adding that Koubei’s analytics had helped determine where to build the pilot smart store as well as provide AI-powered customisations to customers.

    Last year, the company leveraged Koubei’s consumer analytics to better reach its potential customers online and drive traffic to its physical stores. In 2016, Happy Lemon had joined Alibaba’s on-demand delivery arm, Ele.me. The brand said that 30 per cent of its orders come from delivery rather than in-store purchases, and it expects that ratio to grow further.

    Market research firm Mintel says demand for tea-shop drinks has grown remarkably in the last couple of years in China, reaching a total retail value of RMB 48.5 billion (US$7.2 billion) last year. While nearly all tea-shop consumers in China have bought their beverages in physical stores, just over two-thirds have ordered their drinks online, Mintel noted, which means online channels are a potential growth opportunity for tea chains.

  • Tiger Sugar to open first Korea store next month

    Tiger Sugar to open first Korea store next month

    Bubble milk tea brand Tiger Sugar Korea will open first branch in Hongdae, a bustling university town of Seoul.

    Located at a popular hang-out area for young people, the Hongdae store will offer the same taste as that in Taiwan and use premium ingredients to “become the hottest dessert drink this year”.

    In order to do that, Tiger Sugar Korea will be competing with another original Taiwanese chain Gong Cha, which is now popular among locals.

    First opened in Taiwan in 2017, Tiger Sugar is known for drinks with dark-brown sugar syrup inside. The chain now has branches in eight countries including Hong Kong, Singapore, and Korea.

    It also plans to open stores in the US and China.

  • Gong Cha bubble tea could fetch US$442 million

    Gong Cha bubble tea could fetch US$442 million

    South Korean private equity firm Unison Capital is selling its Gong Cha bubble tea franchise in a deal likely to fetch up to US$442 million.

    The company purchased the brand four years ago for KRW34 billion ($30 million), before taking over its global headquarters in Taiwan in a KRW40 billion ($35.45 million) deal in 2017. The brand’s HQ operates stores in 16 countries.

    The offer has attracted interest from major South Korean F&B players, considering the brand’s stable cash flows and EBITDA margin of 24–25 per cent, compared with Starbucks’ 21 per cent.

    The brand runs 448 outlets within South Korea, and derives 70 per cent of its sales from directly managed stores within Korea and Japan. The firm plans to expand its global store count from 900 to 1700 by 2021, expanding into 10 more countries during the period – with concrete plans to establish stores in the UK, Mexico, Thailand, Indonesia and Cambodia.

    Sales are forecast at KRW180 billion ($159.54 million) this year, compared to KRW134 billion ($118.77 million) last year.

  • Unison Capital could bag US$442 million for Gong Cha deal

    Unison Capital could bag US$442 million for Gong Cha deal

    South Korean private equity firm Unison Capital is selling its Gong Cha bubble tea franchise in a deal likely to fetch up to US$442 million. The company purchased the brand four years ago for KRW34 billion ($30 million), before taking over its global headquarters in Taiwan in a KRW40 billion ($35.45 million) deal in 2017. The brand’s HQ operates stores in 16 countries.

    The offer has attracted interest from major South Korean F&B players, considering the brand’s stable cash flows and EBITDA margin of 24–25 per cent, compared with Starbucks’ 21 per cent.

    The brand runs 448 outlets within South Korea, and derives 70 per cent of its sales from directly managed stores within Korea and Japan. The firm plans to expand its global store count from 900 to 1700 by 2021, expanding into 10 more countries during the period – with concrete plans to establish stores in the UK, Mexico, Thailand, Indonesia and Cambodia.

    Sales are forecast at KRW180 billion ($159.54 million) this year, compared to KRW134 billion ($118.77 million) last year.