According to a report by Momentum Works and qlub, in 2021, the total Southeast Asia region spent 3.66 billion USD on milk tea. In which, the largest milk tea consuming countries are Indonesia with 1.6 billion USD, Thailand 749 million USD and Vietnam 362 million USD (about 8,500 billion VND).

In Vietnam, the milk tea market is growing rapidly with many new brands being launched every year and milk tea is becoming a “safety” for many young people. The main customers that milk tea brands target are Millennials and Gen Z, this is a young customer group, accounting for a large proportion of the population structure and also willing to spend. However, customers of milk tea are increasingly expanding and are no longer limited to young people, but even many middle-aged people are becoming followers of milk tea.

Among the famous milk tea chains in Vietnam, Phuc Long’s scale is currently the largest. In 2020, Phuc Long’s revenue is 793 billion dong, 3.4 times higher than Koi The, Phuc Long’s profit after tax is also the largest with 34 billion dong, while Koi’s profit is 16 billion dong. Phuc Long’s revenue is comparable to that of some big coffee chains like Starbucks or The Coffee House.

Phuc Long started its outstanding growth in 2019 when the chain expanded the system from South to North. By 2021, Phuc Long has caught the eye of Masan Group – the largest retail and consumer company in Vietnam, and the two sides will jointly develop “Phuc Long Kiosk” integrating Phuc Long into the “Point of Point” model. Life” of Masan helps Phuc Long be present at thousands of VinMart+ stores nationwide, reaching a wider range of customers. Up to now, Phuc Long has 96 stores and 918 kiosks.

Masan’s latest financial report shows that in the first half of 2022, Phuc Long recorded revenue of VND 820 billion, up 38.5% over the same period last year and EBITDA of VND 117 billion. After 2 times of buying shares of Phuc Long, on August 1 this year, Masan continued through its subsidiary to buy nearly 11 million shares of Phuc Long, equivalent to 34% of equity interest for VND3,618 billion, increase Masan’s ownership rate to 85%.

With the above deal, Masan is valuing Phuc Long up to VND 10,640 billion.

Behind Phuc Long is Koi The, however, Koi Thé’s revenue and profit went down in 2019 and 2020. Koi Thé’s net profit in the 2017-2018 period was approximately VND 40 billion, far ahead of competitors. players, even Phuc Long, but in 2019 suddenly dropped to 14 billion dong.

However, in 2020, Phuc Long and Koi are also two milk tea chains that have not been affected by the epidemic, but their profits have grown compared to 2019. Specifically, Phuc Long increased by 115% and Koi increased by 12%.

Meanwhile, other chains like Gong Cha, Bobapop, and Dingtea all fell into losses. All are brands that are loved by young people, but in 2020, Gong Cha lost 6 billion dong, Bobapop lost 11 billion dong, and Dingtea in 3 years 2018-2020, each year lost 2.3 billion dong.

However, many milk tea brands, after achieving certain successes, conduct business franchising, so the business results of the parent company may not fully reflect the size of that brand in the market. In the market, for example, brands such as Royal Tea, Tocotoco, Gongcha, … all have a relatively high number of franchised stores.

Source: CafeF