Neighbor News
Coffee Bean is Acquired...again?
Instead of looking for the cheapest beans as the multinational companies did, he paid higher prices to help keep his suppliers in business,
We came across an article - posted at 2:06 7/24/19 (UTC+8) from the Philippines indicating CBTL has been acquired.
It's right on the heels of their big promotion coinciding with the release of a Broadway style Theater show and collaborating with Warner Brothers; Special "Central Perk" coffee and limited edition mugs "How you Brewin" & "We Were On A Coffee Break" . They sold out within hours of the email blast. Well, there's a hiccup associated with that marketing venture. HowYouBrewin is an actual coffee shop and they OWN the rights to the "How You Brewin". So now someone in branding and marketing has some explaining to do - or they will have to, as Ross would say, "PIVOT" the marketing to include compensation for the originators of their slogan.
CBTL was founded in 1963 by Herbert & Mona Hyman. Herbert passed away in 2014. Herbert Hyman strategically countered the aggressive marketing and placement of Starbucks near his coffeeshops.
Find out what's happening in Woodland Hillsfor free with the latest updates from Patch.
"In 1991, Starbucks came calling. Intent on entering the Southern California market, the Seattle-based chain “just flat-out said, ‘If you don’t sell out to us, we’re going to surround your stores,’” Hyman told “Starbucked” author Clark. “And lo and behold, that’s what happened and it was the best thing that ever happened to us.”
Prior to his passing, three private equity investors "acquired a significant estate" of the company in 2013. The investors were
- Advent International, with offices in New York and Boston
- CDIB Capital, the overseas investment arm of Asian merchant banking group China Development Financial; Based in Hong Kong.
- Mirae Asset Private Equity, the private-equity arm of Asian financial services group Mirae Asset Financial Group. Based in Hong Kong .
So while CBTL had already garnered the attention of the Asian market, for their high quality tea, the 2013 activities actually set CBTL in a better place to be noticed by Jollibbee Foods headquartered in the Philippines.
Find out what's happening in Woodland Hillsfor free with the latest updates from Patch.
"The total consideration for this acquisition is $350 million on a debt-free basis but Jollibee’s net investment is estimated at $100 million, the company disclosed to the Philippine Stock Exchange on Wednesday. Jollibee, through Singapore-based subsidiary Jollibee Worldwide Pte Ltd., will initially finance the entire acquisition through a bridge loan. This holding company plans to issue within six to nine months preferred shares of at least $250 million, which will be used to repay Jollibee’s advances. CBTL, which is based in Los Angeles, California, will be consolidated into JFC’s financial statements immediately upon acquisition."
https://cebudailynews.inquirer...