RMB 14 billion — Is the once‑nationwide viral “milk‑tea originator” being sold?

Potential sale surfaces as valuation triples in four years

It has been reported that US private equity firm TA Associates is considering a sale of Gong Cha (贡茶), the Taiwanese‑origin milk‑tea brand famed for its “panda milk cap,” and has engaged JPMorgan (摩根大通) to advance the talks. Reportedly the potential deal could value Gong Cha at about $2 billion (roughly RMB 14 billion), though discussions are said to be at an early stage and no final decision has been made.

From Taiwan roots to mainland troubles and overseas resurgence

Gong Cha rose to fame in the early 2010s across Greater China on the back of its milk‑cap tea combo, once operating more than 700 mainland China stores at its peak. But trademark confusion — the Chinese name “贡茶” is a generic tea term — and a flood of imitators stunted its mainland growth just as new premium chains like Heytea and Nayuki expanded. The brand’s ownership has been complex: after a series of regional deals and a 2019 acquisition by TA for about $300 million, Gong Cha shifted its operational centre to London.

Rapid international expansion fuels valuation

While its mainland footprint faded, Gong Cha doubled global locations from roughly 1,000 in 2021 to over 2,000 today, spanning Korea, Japan, the US, the UK and Australia. It has reported system sales of about $600 million in 2024 and set an ambitious target of 10,000 global stores by 2032. Who’s buying a tea chain with such overseas momentum? According to industry sources cited by Red Restaurant (红餐网), preliminary buyers have emerged, though identities were not disclosed.

Why the timing matters

The jump from a reported valuation of roughly $600 million in 2021 to the current $2 billion figure underscores how franchising and international growth can reshape a food‑brand’s worth. It has been reported that TA’s 2019 purchase and subsequent global push are central to that gain. Any sale would occur against a backdrop of tighter cross‑border deal scrutiny and changing consumer tastes — factors that will shape both buyer appetite and regulatory review as Gong Cha seeks its next chapter.