A boba business storm is brewing, and a 'Shang-Chi' star is in the middle of it

• "Shang-Chi" star Simu Liu called out two boba tea entrepreneurs who appeared on an episode of "Dragons' Den."
• They were promoting their new drink, which they said was healthier than regular boba tea.

Simu Liu is in the middle of a brewing business feud over a popular Asian drink.

The "Shang-Chi" actor called out a pair of entrepreneurs from Québec during a Thursday episode of "Dragons' Den," the Canadian version of "Shark Tank."

Entrepreneurs Sébastien Fiset and Jess Frenette, who founded the bottled popping bubble tea brand called Bobba, were asking for funding in exchange for 18% of their company's ownership, per NBC.

The duo was marketing it as a healthier alternative to the "trendy, sugar drink you are queuing up for, and you are never quite sure about its content."

The judges were given the drink to taste. When asked if he liked the drink, Liu, who joined the show as a panelist in its 19th season, said, "I thought it was fine."

"But I'm concerned about this idea of disrupting or disturbing bubble tea," he said in response to the duo's marketing strategy.

When his co-judge Manjit Minhas argued that not everything had to remain traditional, Liu said: "But there's also the issue of cultural appropriation."

"There's the issue of taking something that's very distinctly Asian in its identity, and quote-unquote, making it better, which I have an issue with," Liu added.

Liu, a general partner at the venture capital fund Markham Valley Ventures, called Fiset and Frenette out for not including the origins of boba, which is a Taiwanese drink, on the cans of their products.

According to Liu's LinkedIn, Markham Valley Ventures invests in minority-led startups and Asian American Pacific Islander (AAPI) businesses.

Liu said on "Dragons' Den" that he started his venture company for a lot of reasons but "primarily to uplift minority entrepreneurs."

"And not only do I feel like this is not happening here, but that I would be uplifting a business that is profiting off of something that feels so dear to my cultural heritage," he said of Bobba.

Liu further asked how the duo were paying respect to "this very Asian drink" and who was on their staff and "cap table."

Fiset told Liu that the Canada-based duo had traveled to Taiwan to meet with their partners there, who he called "part of our team."

The exchange on "Dragons' Den" has gone viral on social media, with people on TikTok and Instagram calling Bobba out and accusing the brand of cultural appropriation.

As of press time, the most viewed clip of the exchange, posted by CBC Gem on TikTok, has been viewed more than 8.2 million times.

The clip has sparked parodies on TikTok.

One TikTok clip, posted by user Winniedapoo, has been seen 3.1 million times as of press time. In the clip, the TikTok user films himself drinking boba with the overlaid caption: "Felt like drinking my ethnical drink today that 'I'm never quite sure about its content.'"

In an apology statement on Bobba's Instagram on Monday, Fiset and Frenette said that Liu "raised very valid points regarding cultural appropriation" and that they "welcome this learning opportunity."

"When we said, 'You're never quite sure about its contents,' we were not referring to the traditional bubble tea formula found in specialized shops, nor were we criticizing it," the statement said.

"What we were comparing it to is the other ready-to-drink products like ours found in big box stores," it added.

Not the first time Liu's been vocal about race

Liu on Saturday posted a TikTok saying he appreciated the outpouring of support for his stance, but that he condemned any harassment and death threats directed toward the owners of Bobba.

"It's never OK to make threats, it's never OK to bully and harass online," he said.

Liu has been outspoken about race issues.

In 2021, he clapped back at Disney's former CEO Bob Chapek, who said that the upcoming "Shang-Chi" release would be an "interesting experiment."

Liu took to Instagram and X to address Chapek's comments, writing, "We are not an 'interesting experiment."

In June 2021, he said a show he was on, "Kim's Convenience," had a team of "overwhelmingly white" writers.

The global boba tea industry — or bubble tea as it is known in Asia — is estimated to be worth billions. In July, Allied Market Research pegged its value at $3.1 billion in 2023, and projected that the industry would be worth $5.4 billion by 2033.

Representatives for Liu and Bobba didn't respond to a request for comment from Business Insider, sent outside business hours.