Published On: Wed, Nov 27th, 2019

TA Associates invests in Taiwanese tea brand Gong cha

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Taiwanese tea brand Gong cha Group has closed an undisclosed investment from global growth private equity firm TA Associates.

Established in 2006, Gong cha offers tea, products, and services by procuring ingredients from selected suppliers and giving customers freshly brewed tea.

The company’s main product is the Taiwanese-style bubble tea, which is sweet milk tea combined with pearl-shaped tapioca. By mainly using a franchise model, Gong cha reaches consumers via a range of retail store formats such as urban and suburban stores, and also take-out shops, mall-based stores, and kiosks, located in high-traffic areas like train and metro stations.

There are over 1,100 Gong cha stores in 17 countries, including Taiwan, Japan, Korea, the Philippines, Vietnam, Singapore, Malaysia, Mexico, Australia, Canada, the UK, and the US.

Taiwanese tea brand Gong cha secures investment from TA Associates

Taiwanese tea brand Gong cha secures investment from TA Associates. Photo courtesy of Wpcpey/Wikipedia.org.

Michael Berk – a Managing Director at TA Associates said: “The global tea market has enjoyed steady growth over the past several years, and tea remains a staple beverage across Asia and increasingly around the world.

“Globally, the tea market is estimated to be larger than that of coffee, with continued expected growth. Given these market dynamics, we believe that Gong cha is well-positioned to further expand its presence and brand throughout the world.”

Global private markets investment manager Partners Group, on behalf of its clients, gave debt and equity to Gong cha to support the transaction via its Private Debt business. Additionally, as part of the transaction, Gong cha management and the founders of Gong cha Korea and Japan made significant investments in the Taiwanese tea brand alongside TA and Partners Group.

Edward Sippel, a Managing Director at TA Associates and Co-head of Asia operations of TA Associates Asia Pacific, said: “We are very pleased to invest in Gong cha, a high-growth business that is among the world’s most recognized Taiwanese tea brands.

“We are extremely impressed with how successfully the management team has grown Gong cha into the profitable, global business it is today. We will work closely with management in supporting the Company’s franchise partners and look forward to helping grow the Gong cha brand in new and existing markets.”

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