Koufu and its joint venture partners mutually terminated their planned joint venture to expand the Supertea and R&B Tea brands into Indonesia, the Singapore coffee shop operator said in a filing to SGX Tuesday.
After undertaking additional market research on the Indonesian food and beverage market, including the regulatory framework, “the JV partners were in agreement that it would be more beneficial for the company to pursue its expansion into Indonesia with a local partner,” Koufu said.
“Indonesia remains an attractive and sizeable market for the company’s Supertea and R&B Tea brands, with a population in excess of 100 million in the target age group of between 15 and 39 years old,” Koufu said. “The company continues to actively look for strategic local partner(s) in Indonesia for the expansion of its bubble tea business in this market.”
The termination of the joint venture isn’t expected to have any material adverse impact on earnings per share for the current financial year, the company said.