BreadTalk unit in joint venture to bring popular Chinese tea brands to Singapore and the region
A UNIT of the BreadTalk Group has entered into a joint venture (JV) with Shenzhen Pindao Food & Beverage Management (Pindao) to bring popular tea brands Nayuki and Tai Gai to Singapore and the region.
Wholly owned BreadTalk subsidiary Together Inc will take a 90 per cent stake in the JV - called BTG-Pindao Venture - with Pindao holding the remaining 10 per cent.
The JV company will operate and manage the tea beverage brands Nayuki and Tai Gai in Singapore and Thailand, with a right of first refusal to operate in Malaysia, Indonesia and the Philippines.
Both brands are owned by parent company Pindao, which was founded in Shenzhen in 2014 and has more than 100 stores in 14 Chinese cities, according to BreadTalk's media statement.
BreadTalk cited Pindao's "dedication towards making tea culture relevant and accessible" to a new generation of South-east Asian consumers as part of the reason for the joint venture.
BreadTalk Group chief executive Henry Chu highlighted the "growing demand" for novelty tea beverages among young consumers.
Nayuki - which bills itself as a new cafe concept offering premium tea creations and healthier snacks - has already begun looking for a site in central Singapore, BreadTalk said.
Meanwhile, Tai Gai will offer milk tea to customers with signature brews such as Sun Moon Lake Red Tea, Durian Jasmine Green Tea, and Cheesy Pu Er Tea, made using globally-sourced tea leaves and fruit and topped with a milk crown which comes in cheese and milk flavours.
BreadTalk said that the investment is not expected to have any financial impact on the group for the financial year ended Dec 31, 2018.
Its counter closed down 1.08 per cent to S$0.92 on Monday, before the announcement was made.