Koufu Group inks franchising deal to expand Supertea, R&B Tea to the Philippines
A “co-branding” strategy will be utilised in the first year of business.
SGX-listed Koufu Group is introducing its Supertea and R&B Tea brands to the Philippines, courtesy of a master franchise agreement with Shakey’s Pizza Asia Ventures.
"We have carefully considered the market trends and found the conditions in the Philippines to be favourable; there has been a growing receptiveness towards the bubble tea culture in recent years," said Pang Lim, the SGX-listed group's executive chairman and chief executive officer.
Under the deal, Shakey’s will have the rights to retail the two beverage brands for seven years, intending to adopt a co-branding strategy to sell selected R&B Tea drinks at its Shakey’s and Peri Peri stores in the first year and subsequently open at least five self-operated, stand-alone R&B Tea outlets.
“This co-branding initiative is likewise in line with our renewed focus on out-of-store consumption, enhancing sales through these channels with minimal additional investment and maximising the use of our existing assets,” added Vicente Gregorio, Shakey’s president and chief executive officer.
Shakey’s also has the rights to sub-franchise R&B Tea to sub-franchisees within the given term. Koufu will collect franchise fees, royalties and marketing fees as part of the agreement.
Manila will serve as the initial landing point for the brands, which Shakey’s expects to be a third pillar of growth.
