Twelve Cupcakes has been sold to an Indian tea company for S$2.5 million.
Following its celebrity owners’—Daniel Ong and Jamie Teo—divorce, rumours about the famed cupcakes company being sold have also been confirmed.
So, was this decision made because of the divorce?
THE CUPCAKE EMPIRE’S BEGINNINGS
The high profile couple, Daniel Ong and Jamie Teo, were a power duo who took Singapore by storm when they first introduced Twelve Cupcakes to the market in 2011. What started out as a mere hobby of baking for Jamie Teo became a big business when the couple launched its first outlet in United Square.
It was a whole new era for cupcakes in Singapore; suddenly, everyone included cupcakes in their diets (whatever they are) and the Twelve Cupcakes saw a sell-out every day.
Their success was undeniable. Everyone was applauding them—not just for their then enviable marriage, but for how amazing their cupcakes were. They also coined the iconic Red Velvet Cream Cheese Cupcake, and until today, every other cupcake brand still tops their red velvet cupcakes with a heart-shaped topping.
Twelve Cupcakes went on to opening more outlets, and it didn’t take them long to conquer Singapore. Today, Twelve Cupcakes has several franchise partners, and there are more than 10 outlets across cities such as Jakarta, Hong Kong and Taipei.
NEGOTIATIONS AND THE ACTUAL SALE
So when was the company really sold? Was it coincidental that the selling of the company happened simultaneously with their divorce announcement?
Negotiations started at in the first quarter of 2016, and the company was eventually sold for S$2.5 million and the sale was completed in December 2016.
THE NEW OWNER OF TWELVE CUPCAKES
The buyer of Twelve Cupcakes is Kolkata-based Dhunseri Group, one of India’s largest tea producers, who will own 100% stake. Dhunseri Group, which has been in the tea business for more than five decades, expanded its holdings to 10 estates in 2012-13 in Assam (from eight estates in 2003-04).
This deal marks Dhunseri Group’s first foray into the F&B space in Singapore and the region. The group has plans to expand the brand further and to add eight more outlets here in Singapore over the next two years. They will bring the brand into India too.
Meanwhile, it has been reported that Daniel Ong and Jamie Teo will remain as consultants for the company for a year.