Retail News CRM

Tag: Highlands

  • Vietnam’s Largest Coffee Chain, Highlands Coffee, Brews Up to $400M Potential IPO

    Vietnam’s Largest Coffee Chain, Highlands Coffee, Brews Up to $400M Potential IPO

    Highlands Coffee, Vietnam’s most prominent coffee chain, is exploring the option of an initial public offering (IPO) in its native country, with the potential to raise between US$300-400 million. The company is currently working alongside a financial advisor, and there are discussions of potentially increasing the number of banks involved in the process.

    Despite the ongoing discussions, details surrounding the IPO’s size remain flexible and may be subject to change. Considerations are being made carefully, with all the necessary precautions taken to ensure a successful outcome.

    Highlands Coffee’s major stakeholder is Jollibee Foods, a leading fast-food group based in the Philippines. Jollibee Foods holds a 60% stake in SuperFoods Group, the parent company of Highlands Coffee. They began their investment in the coffee chain back in 2012.

    The origins of Highlands Coffee date back to 1999, when Vietnamese-American entrepreneur David Thai established the business. From its humble beginnings, the chain has expanded significantly and now boasts a total of 928 outlets. These outlets are spread not only across Vietnam but also in various international locations.

    Questions & Answers

    Who is the biggest stakeholder in Highlands Coffee?
    The biggest stakeholder in Highlands Coffee is Jollibee Foods, a fast-food group based in the Philippines. They own a 60% stake in SuperFoods Group, the parent company of Highlands Coffee.

    Who founded Highlands Coffee, and when was it established?
    Highlands Coffee was founded by Vietnamese-American entrepreneur David Thai in 1999.

    How many outlets does Highlands Coffee have, and are they only located in Vietnam?
    Highlands Coffee has a total of 928 outlets. While many of these are located in Vietnam, the chain also has a presence in various international locations.

  • Highlands Coffee Brews Up Success with Record 17% Earnings Jump in Q3

    Highlands Coffee Brews Up Success with Record 17% Earnings Jump in Q3

    Highlands Coffee, the biggest coffeehouse chain in Vietnam, noted an earnings before interest, taxes, depreciation and amortization (EBITDA) of 666 million Philippine pesos, equivalent to US$11.3 million, for the third quarter. This demonstrates a 17.1% growth compared to the same period last year and is the highest quarterly EBITDA since Q3 2023 when Jollibee Foods Corporation, its parent company, started releasing its financial data separately.

    Contribution to Parent Company’s Earnings

    The Vietnamese coffee brand contributed about 6.1% to the total EBITDA of Jollibee Foods Corporation, which is based in the Philippines. Moreover, it made up 29% of the corporation’s coffee and tea sector. Sales at locations that have been in operation for a minimum of 15 months saw a 17.2% increase.

    The EBITDA of Highlands Coffee for the first three quarters of 2025 experienced a 9.5% rise, amounting to 1.9 billion Philippine pesos.

    Chain Expansion

    The coffee chain operates 928 branches both domestically and internationally, 109 of which were inaugurated within the first nine months of the year. Originally established in 1999 as a packaged coffee vendor in Hanoi, the business transitioned into the coffeehouse industry in 2002 with its pioneer branch in Ho Chi Minh City. The chain was later acquired by Jollibee Foods Corporation in 2012.

    Business Strategy

    David Thai, the founder and CEO, acknowledged earlier this year that the coffee chain has witnessed positive outcomes due to its business model, customer-centric approach, and well-defined positioning in terms of products, pricing, and taste. The company streamlined its operations and expanded methodically. Moreover, the firm primarily focuses on enhancing its flavor profiles before investing in marketing efforts.

    Highlands Coffee is planning to go public in Vietnam, Thai confirmed, although a specific timeline was not provided. Industry analysts and securities agencies forecast that it will likely be listed in 2026-2027, coinciding with an anticipated wave of initial public offerings.

    Vietnamese F&B Market

    In the first half of the current year, the food and beverage sector in Vietnam generated VND406.1 trillion, equivalent to US$15.4 billion in revenues, a slight increase from the VND403.9 trillion recorded a year earlier, as stated by digital management solution provider iPOS.

    Despite major holidays such as the Lunar New Year in February and the Reunification Day at the end of April not boosting sales as expected, Vietnamese consumers seem to be maintaining their F&B expenditures. However, the report also indicated that the number of F&B locations is dwindling and the market is heading towards intense competition.

    Questions & Answers

    What is the current contribution of Highlands Coffee to Jollibee Foods Corporation’s total EBITDA?
    Highlands Coffee contributes approximately 6.1% to Jollibee Foods Corporation’s total EBITDA.

    What is the business strategy of Highlands Coffee according to its CEO, David Thai?
    The business strategy of Highlands Coffee is based on its unique business model, customer-centric approach, and distinctive positioning in terms of products, pricing, and taste. The company prioritizes developing its flavor profiles before allocating resources to marketing.

    What is the projected timeline for Highlands Coffee to go public in Vietnam?
    Securities firms and analysts predict that Highlands Coffee will go public in Vietnam between 2026 and 2027.

  • Philippines’ Jollibee in talks to sell a stake in Vietnam’s Highlands Coffee

    Philippines’ Jollibee in talks to sell a stake in Vietnam’s Highlands Coffee

    Jollibee Foods Corp, the biggest fast-food operator in the Philippines, is in advanced discussions to sell a minority stake in its Vietnamese coffee chain Highlands Coffee, two sources with knowledge of the matter told Reuters.

    Jollibee, controlled by Philippine billionaire Tony Tan Caktiong, is considering a sale that could value the fast growing coffee chain at roughly $800 million, one of the sources said, declining to be named as the information is confidential.

    The group is looking to sell 10% to 15% of its stake in Highlands Coffee to an investor, the source added, declining to name the party.

    Jollibee declined to comment. Highlands Coffee did not respond to requests seeking comment on Tuesday.

    Jollibee initially bought a small stake in Highlands Coffee a decade ago and then took a controlling interest. Highlands Coffee, which was established in 1999, began as a coffee products packager in Hanoi and has since grown to become a chain with more than 500 stores in Vietnam and the Philippines.

    The sources said the stake sale, if successful, could eventually pave the way for an IPO of Highlands Coffee, a move that Jollibee has been considering since many years.

    Vietnam, with a population of 99 million, is Asia’s fastest growing economy with gross domestic product seen expanding 8% this year and 6.5% next year, the government said last month.

    A boom in coffee drinking has spawned big domestic brands in Southeast Asia. Last year, Indonesian coffee chain Kopi Kenangan was valued at more than $1 billion in a funding exercise.

    Jollibee has been rapidly expanding overseas and especially across Southeast Asia, aiming to capture growing consumer spending in the region of some 680 million people.

    Jollibee operates the largest food service network in the Philippines with more than 1,500 stores in 17 countries, including U.S. brand Coffee Bean & Tea Leaf and its own fast-food chain with the ubiquitous smiling bee logo.

    Lees ook:

  • Highlands Coffee locked in rental disputes at major locations

    Highlands Coffee locked in rental disputes at major locations

    Several landlords have cut off utilities to major Highlands Coffee outlets for not paying rent; the coffee chain says it needs rental discounts for unexpected enforced closures.

    Real estate developer Hoa Binh House has lodged a complaint with authorities of Ward 25 in HCMC’s Binh Thanh District, saying the coffee chain owes it five months’ rents at nearly VND500 million ($22,036).

    A Hoa Binh House representative said that the company had blocked the entrance to Highlands Coffee’s location at the Pax Sky building Monday morning.

    “So far Highlands Coffee has not made any moves to pay its debt. They have not contacted us to deal with the complaints we have filed.”

    A Highlands Coffee rep said that the company was trying to resolve conflicts with Hoa Binh House, and that both sides had exchanged many letters on the issue.

    The coffee chain, part of the Philippines’s Jollibee Foods Corporation, said that prolonged social distancing in HCMC in the third quarter had caused major losses to the company with revenues falling to zero.

    Highlands Coffee does not have the ability to pay rent in full for that period. Therefore, the coffee chain requested Hoa Binh House for a 50 percent discount in the first week of July, from Jul. 1 to Jul. 8, and a 100 percent discount on rent from July 9-15. The chain also asked for 50-100 percent discount the entire time that the city imposed social distancing.

    The discount will be deducted in Highlands Coffee’s payments starting August 15 onward, the chain suggested.

    Hoa Binh House, however, did not agree. Its rep said that the building it is operating, Pax Sky, was also affected by HCMC’s social distancing, which exerted major financial pressure.

    Highlands Coffee cannot unilaterally invoke the force majeure clause without a decision from the court to that effect.

    Hoa Binh House agreed to give a 20 percent discount in August, and had Highlands Coffee agreed to it, the real estate developer would have given another 20 percent discount for the next three months.

    Since Highlands Coffee still kept asking for the full discount, Hoa Binh House terminated their contract on November 12 and cut electricity and water to the location.

    Highlands Coffee later set up its own electric generator and water tank and continued to do business. It also told Hoa Binh House it would seek compensation for the damage caused by cutting off electricity and water supply.

    It was reported earlier that the coffee chain also owed six months’ rents for its outlet in Artemis building in Hanoi’s Thanh Xuan District. The amount involved was more than VND1 billion.

    Residents in the neighborhood said that as the conflict played out, many people wearing Highlands Coffee uniformed showed up and had physical contact with securities guards of the Artemis building.

    Highlands Coffee told reporters that the company was in financial difficulties due to social distancing in the capital and was negotiating with Artemis building mangers.

    It said that the building managers unilaterally cut electricity and water and even confiscated Highlands Coffee’s assets.

    It did not comment on the report of people in its uniform showing up and causing disruptions in the neighborhood.

    The rep confirmed that Highlands Coffee, which has 450 outlets nationwide, wants to resolve its conflicts with landlords under existing laws.