Coffee Bean posts gains as boycotts hurt competitors
Jollibee-owned Coffee Bean and Tea Leaf posts growth in the Middle East as customers in some countries shun Starbucks. The boycotts, however, are not seen in the Philippines.
MANILA, Philippines – Boycotts in many parts of the world continued to hurt US companies perceived to have supported Israel in its assault over Palestine, tanking sales, stock prices, and effectively tarnishing brand reputation.
Many customers in some countries have veered away from the likes of McDonald’s and Starbucks, and have embraced other brands, including Jollibee-owned Coffee Bean and Tea Leaf (CBTL).
In a recent press briefing, Jollibee chief financial officer Jeremy Shin said Coffee Bean has posted gains in the Middle East.
“Our CBTL business, for whatever reason, is not seen as an American brand, although it started in California. I think it’s because it’s headquartered in Singapore and it’s owned by an Asian player, us,” Shin said.
“So we’ve seen a significant increase in that business and it’s picking up from the Starbucks of the world. But we haven’t seen that data in the Philippines,” he added.
Homegrown Jollibee acquired CBTL in 2019 for $350 million, so far its largest global acquisition.
Last January, Starbucks said the Israel-Hamas war hurt its business in the Middle East, with first quarter earnings missing market expectations. AlShaya Group, which owns the rights to operate Starbucks in the Middle East, announced it would lay off over 2,000 people.
Shin, however, did not elaborate whether Jollibee was able to scoop up market share from McDonald’s amid the boycotts.
McDonald’s CEO Chris Kempczinski earlier described the boycotts as “disheartening,” as sales plummeted in the Middle East and other Muslim-majority nations such as Malaysia and Indonesia.
As for the Philippines, Shin described growth in sales as “organic.”
“I’m not sure if that’s from any anti-American sentiments, but I think it’s coming from proper organic growth with the right strategies being executed,” Shin said.
Jollibee, through its many brands including CBTL, posted revenues of P244.1 billion in 2023, a 15.2% increase from a year ago despite high inflation. This translated to a new record operating profit of P14.4 billion, a 45% increase from the same period a year ago.
System-wide sales, a measure of all sales to consumers, surpassed the P300-billion mark, growing by 16.3% to P345.3 billion.
Jollibee is further expanding its brand internationally, as well as its coffee and tea business led by CBTL. It is also slated to “exponentially grow” in China. – Rappler.com