Loob Holding will take a 51% majority stake in the joint venture, which will be known as Shanghai Loob Boduo Food and Beverage Co Ltd.
Meanwhile, partners Zhejiang Boduo International Co Ltd (Boduo) and Shanghai Panfei International Trade Co Ltd (Panfei) shall hold 43% and 6% equities in the joint venture, respectively.
Boduo shall contribute its strengths in supplying raw materials, warehousing, network, and real estate.
On the other hand, Panfei shall supply equipments to the joint venture.
Speaking after the signing ceremony today, Loob Holding CEO Bryan Loo said the first Tealive outlet will be opened in Shanghai this September before more stores are being opened in other selected cities.
Noting that China, the world’s largest tea market, will be the fourth overseas market for Tealive, Loo said this augured well for the progress of Loob’s ‘Breakthrough’ campaign where the brand encouraged Tealive lovers to always push the boundaries and achieve ‘breakthrough’ results in all their endeavours.
Latest indicators estimate that the market for tea in China has exceeded US$21bil.
“Barely six months after the birth of Tealive, we took the brand to Vietnam and we now have five outlets.
“We have penetrated the Australian market with our first store there next month.
“Just last month, we appointed our Master Franchisee in India and we are targeting 140 outlets within five years.
“Once again, Loob has achieved a ‘breakthrough’ being the first Malaysian bubble tea brand to enter India,” he said.
The agreement signing ceremony was witnessed by National Chamber of Commerce and Industry Malaysia (NCCIM) president Tan Sri Ter Leong Yap, Malaysia Retail Chain Association (MRCA) deputy president Datuk Vincent Choo, Malaysia Franchise Association (MFA) chairman Datuk Radzali Hassan, and Boduo Investment Group vice president Henry Chen.
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