Information on the target
Highlands Coffee, a prominent coffee chain in Vietnam, is set to undergo a significant ownership transition as CEO David Thái, the founder of Viet Thai International (VTI), plans to invest approximately $88 million to acquire an additional 11% stake from Jollibee Foods Corporation. This transaction will elevate VTI's ownership to 51%, thereby restoring control of the brand to its Vietnamese founder after more than a decade of foreign ownership. The deal values Highlands Coffee at around $800 million, reflecting its robust market presence and growth potential.
Founded in 1999, Highlands Coffee has expanded to approximately 1,000 locations across Vietnam and the Philippines. The company also exports packaged coffee products, including instant coffee, ground coffee, and coffee beans, to over 20 international markets. The brand has demonstrated consistent growth, with a reported 11.5% increase in same-store sales in Vietnam during Q2 2026.
Industry overview in the target’s specific country
The Non-Alcoholic Beverages (NEC) industry in Vietnam has experienced significant growth in recent years, driven by changing consumer preferences and an expanding middle class. As health consciousness rises among consumers, there is a notable shift towards non-alcoholic beverages, including coffee, tea, and soft drinks. This trend is particularly evident in urban areas, where the demand for premium coffee products has surged, positioning brands like Highlands Coffee favorably within the market.
Vietnam is one of the largest coffee producers globally, and the domestic coffee culture is deeply ingrained in the lifestyle of its citizens. The rise of specialty coffee shops and chains has contributed to a burgeoning market for high-quality coffee beverages. The increasing popularity of coffee consumption, particularly among younger demographics, has fueled the growth of coffee chains, with Highlands Coffee being a key player in this segment.
Moreover, the competitive landscape in the Non-Alcoholic Beverages industry is evolving, with both local and international brands vying for market share. The entry of new players and the expansion of existing brands have intensified competition, prompting companies to innovate and diversify their product offerings. This dynamic environment presents both challenges and opportunities for established brands like Highlands Coffee, which must continuously adapt to consumer preferences and market trends.
As the industry prepares for potential public offerings, such as Highlands Coffee's anticipated IPO, the focus on capitalizing on growth opportunities will be paramount. The ability to access capital markets will ena…