Zagu
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 Logo | |
Company type | Private |
|---|---|
| Industry | Food and beverage |
| Founded | April 1999 |
| Founder | Genevieve Lim-Santos |
| Headquarters | Pasig, Philippines |
Number of locations | 500+ (2024) |
Area served | Philippines, United Arab Emirates |
| Products | Pearl shakes |
| Owner | Zagu Foods Corporation |
Zagu is a Philippine beverage brand that sells pearl shakes containing tapioca balls. Established in April 1999, the company introduced products with tapioca pearls to the Philippine market prior to the widespread popularity of milk tea in the 2010s. Zagu operates through an authorized dealership model and has over 500 locations in the Philippines and the United Arab Emirates.
Founding and early years
Zagu was founded by Genevieve Lim-Santos, a Food Science graduate from the University of British Columbia in Vancouver, Canada.[1] Lim-Santos returned to the Philippines in 1997 during the 1997 Asian financial crisis.[2] She observed the sales of bubble tea in Vancouver and decided to introduce a similar concept to the Philippines.[2]
During the development phase, Lim-Santos removed the tea component from the original Taiwanese bubble tea concept.[2] She localized the product by focusing on flavored shakes mixed with tapioca pearls, known locally as sago, as she believed the Filipino market at the time was not yet accustomed to tea-based drinks.[2] She utilized her father's coffee shop to test the initial flavors, which included Taro and Honeydew.[2]
The first Zagu outlet opened in April 1999 as a roadside kiosk along A. Mabini Street in San Juan.[1] The number of outlets increased to over 200 by 2001.[2] In 2001, Zagu received the "Most Innovative Business Venture" and "Most Outstanding Business Venture" awards at the 16th Annual Parangal ng Bayan.[1]
Trademark dispute
In January 2001, Zagu Foods Corporation filed a lawsuit against Kerrisdale Food Corp., a former franchisee, for copyright infringement and unfair competition.[3] Zagu alleged that the respondent's brand, "Shago," used a trademark, color scheme, and operational procedure that were substantially similar to Zagu's.[3]
International expansion
The company expanded its operations to the United Arab Emirates.[4] In November 2017, Zagu opened an outlet in Little Manila, a Filipino-themed dining complex in Abu Dhabi.[4]