Highlands Coffee has secured its position as Vietnam’s "undisputed coffee champion" under the ownership of Manila-based Jollibee Group. The Vietnamese chain delivered strong third-quarter sales and continued outlet expansion, a performance that solidified Jollibee’s confidence in the brand just six weeks after the parent company agreed to reduce its equity stake. This recent financial strength follows an earlier announcement in February 2026, where Jollibee described Highlands as having "evolved into a potential billion-dollar brand." That assessment came on the back of 23% year-on-year sales growth recorded during the fourth quarter of 2025, demonstrating consistent momentum for the joint venture.
Profitability Over Expansion
Jollibee treats Highlands as the largest chain within its broader foodservice portfolio, which now includes 10,900 stores across various categories. The strategy prioritizes profitability over aggressive new store openings, a deliberate choice to maximize returns from existing locations. This approach contrasts sharply with the tactics seen in South Korea, where Compose Coffee recently tempered its own outlet growth to focus on more profitable sites. In that market, Compose lost significant share to low-cost rival Mega Coffee, illustrating the risks of expanding without strict profit controls. By focusing on quality locations, Highlands avoids the dilution of margins that can accompany rapid scaling in competitive regions.
Strategic Stake Adjustments
The decision to trim Jollibee’s investment comes nine months after the initial praise for the brand’s trajectory. Jollibee first acquired a 50% stake in the Vietnamese coffee chain in 2012, establishing a long-term partnership that has since matured into a major revenue driver. The recent deal to lower this percentage reflects a shift toward optimizing capital allocation rather than increasing exposure. While the specific terms of the reduction remain private, the timing suggests management is confident in Highlands’ ability to generate cash flow independently. This move allows Jollibee to reinvest in other parts of its global network while maintaining influence over the coffee segment. The outcome positions Highlands to operate with greater autonomy, potentially accelerating its growth beyond the current market leader status it already holds.
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