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Category: Food

Retail News Asia is committed to providing both local and global retailers with the latest Food and Food & Beverage news throughout the Asian market. This on a daily base.

  • Coffee shops, eateries packed with customers on first days of Lunar New Year

    Coffee shops, eateries packed with customers on first days of Lunar New Year

    Businesses serving food and drink in Hanoi and Hai Phong have seen a surge in consumers during the first few days of the Lunar New Year.

    Many coffee shops in Hanoi closed on January 22, the first day of Tet, and started welcoming patrons again the following day.

    Highlands Coffee, The Coffee House, Phuc Long, Starbucks and other coffee chains didn’t raise prices on Tet to entice people

    Several smaller shops charge an extra VND5,000-VND10,000 (21 cents-43 cents) for each drink.

    There has been a noticeable increase in the number of young people seen at downtown establishments since the Lunar New Year’s Eve.

    Huong Mai, a resident of Hanoi’s Nam Tu Liem District, had to walk to a number of cafés on Ly Thuong Kiet Street at around 7 p.m. to find one with a table big enough for eight people.

    “Most stores have a high volume of customers coming in and out at any given time,” said Mai. “The wait time for refreshments is also longer than usual.”

    Not only do large coffee chains attract a huge number of customers, but so do a plethora of smaller, more affordable sidewalk cafés.

    On the second day of Tet, Dang Hoang Viet of Hanoi’s Ha Dong District said he and his family ate grilled steak at an eatery on Cua Dong Street for VND750,000.

    His family spends around VND650,000-VND700,000 on a normal day for a similar meal.

    In northeastern Hai Phong City, the food court at Aeon Mall was also filled with patrons.

    It took Quang Thanh, a local resident, over half an hour to find an available table on the first level of the shopping complex when he came at 6:30 p.m. on the second day of Tet.

    When asked about Lunar New Year’s Eve dining, Thanh said: “It took me a long time to find a table, and it took the restaurant another half an hour to make and serve my food.”

    On the first day of Lunar New Year, many eateries in Hai Phong stayed open late.

    Nguyen Ngoc Anh, owner of a row of vermicelli and banyan cake shops on Le Lai Street in Hai Phong, says he has kept his shops open till the end of Tet in recent years to accommodate the growing number of customers who venture out to the city to see fireworks or visit temples. She says that this period has the potential to bring in more business than any other time of the year.

  • Consumer Reports urges dark chocolate makers to reduce lead, cadmium levels

    Consumer Reports urges dark chocolate makers to reduce lead, cadmium levels

    Last month, Consumer Reports said 23 of the 28 dark chocolate bars it tested included potentially harmful levels of lead, cadmium or both for people who eat more than one ounce of chocolate a day.

    Five had elevated levels of both metals: two from Theo, and one each from Hershey-owned Lily’s, Mondelez-owned Green & Black’s, and Trader Joe’s.

    Consumer Reports said many consumers eat dark chocolate for its potential health benefits and relatively low sugar levels, but “there’s nothing healthy about ingesting heavy metals.”

    The chocolate makers did not immediately respond to requests for comment.

    The National Confectioners Association, a trade group, said the California health guidelines that Consumer Reports used and considered “the most protective available,” are “not food safety standards” and that chocolate remains safe to eat.

    Consumers have been sued at least nine times by Trader Joe’s over its dark chocolate since Consumer Reports released its study.

    Hershey’s and Mondelez have also been sued over the magazine’s findings, as have other chocolate makers, including Godiva and Lindt (LISN.S).

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  • Food delivery platforms see gross merchandise value rise 37.5%

    Food delivery platforms see gross merchandise value rise 37.5%

    The total gross merchandise value (GMV) of food delivery platforms in Vietnam hit $1.1 billion in 2022, up from $800 million in 2021, said Singapore-based venture outfit Momentum Works.

    Of the total GMV, Grab accounted for the biggest share with 45%, followed by ShopeeFood 41%, Baemin 12% and Gojek 2%, the firm said in its latest report “Food delivery platforms in Southeast Asia,” which was issued in January.

    Last year total GMV in Southeast Asia grew at a modest 5% to $16.3 billion, mainly driven by the relatively smaller markets of Malaysia, the Philippines and Vietnam, while larger markets – Indonesia, Thailand and Singapore – recorded declines, Momentum Works stated.

    The three largest markets all recorded a GMV decline in 2022, due to various factors. For example, thepost Covid reopening of the ecoomy reopening in Singapore shifted food services demand offline, while in Thailand the withdrawal of government subsidies after October 2022 as well the floods in the second half of the year played significant roles.

    Malaysia, the Philippines and Vietnam, the three smaller markets, have recorded significant growth, as players including Grab and ShopeeFood expanded their market penetration, according to the firm.

    Grab has taken market share leadership in Malaysia and Vietnam from Foodpanda and ShopeeFood respectively, and now contributes 54% of the region’s total platform GMV.

    ShopeeFood has reduced market-share-grabbing incentives, while Foodpanda/DeliveryHero is rumored to be in the process of exiting a few markets in the region, according to Momentum Works.

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  • Tuna becomes billion-dollar export for first time

    Tuna becomes billion-dollar export for first time

    Despite a sharp fall in exports before the end of 2022 due to global inflation, tuna still brought home US$1 billion in revenue last year, up 34% from 2021, becoming a billion-dollar commodity for the first time, data showed.

    Tuna products of Vietnam were shipped to 99 markets, of which the U.S., the EU, members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Israel, Thailand, Saudi Arabia, Russia, the Philippines, and Egypt were the largest importers, accounting for 92% of total exports, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).

    Germany, Spain, and Belgium were the biggest EU buyers of Vietnamese tuna. Notably, shipments to Germany and Spain shot up 161% and 117% last December, respectively.

    Tuna exports to Japan, a CPTPP member, grew fast in the last quarter of 2022. The value surged 131% year on year in December alone, helping raise the export turnover to CPTPP markets to nearly $136 million, up 48%.

    Meanwhile, strong declines were recorded in shipments to many other markets, VASEP said, noting that after dropping in November, tuna exports to the U.S. fell by another 38% in December. However, last year’s exports to this market still rose 44% to approximate $487 million.

    VASEP forecast the export in the first quarter of 2023 will be unable to sustain its 2022 performance, but markets may recover in the latter half of this year. Free trade agreements are the driver for tuna exports in the year’s beginning.

  • Diageo to buy Philippine rum brand Don Papa

    Diageo to buy Philippine rum brand Don Papa

    The news Diageo is to buy Philippines-based dark rum brand Don Papa was met with positive noises by industry insiders this week.

    Diageo’s acquisition of Don Papa will complement the spirits giant’s existing rum portfolio and should allow the group to better take advantage of favourable headwinds in what the company and some industry watchers call the “super-premium-plus” segment. Mainstream rum, especially in the US, has been sluggish for some time and, despite Diageo’s best marketing efforts, its flagship Captain Morgan brand has not been immune from this. In the year to 30 June, the brand’s sales fell by 3% globally and by 6% in North America.

    In a client note discussing the Don Papa deal, analysts at investment bank Jefferies highlighted the poor performance of mainstream rum over the last decade. The analysts contrasted its fortunes with the super-premium plus segment of the category, which they said has grown by a CAGR of 18% in Europe and 27% in the US over the last five years (2016-2021).

    “We believe there are reasons for optimism for the rum category, in particular in the high-end, dark variants,” Jefferies’ Ed Mundy said, pointing to a renewed interest in sipping rums, the drink’s relatively affordable price point and its sweeter taste profile as three reasons the category is set to prosper.

    “Many bartenders are taking rum to a party, which is a leading indicator of category health.”

    Although Diageo does have some exposure to premium rum (Ron Zacapa, Ron Santiago de Cuba, Pampero), the group’s portfolio is skewed towards mainstream and economy – according to Jefferies, the company sold 11m cases of Captain Morgan and 10m cases of local Indian rum McDowell’s last year – with a lower exposure to super premium (the group only owns 50% of Ron Zacapa, accounting for less than 100,000 cases).

    Therefore, striking a deal to acquire a bigger brand such as Don Papa (180,000 cases) – and one that plays in both premium and super-premium; in the UK, the brand’s seven-year-old variant has an SRP of GBP34 (US$42) and the more premium Baroko variant costs GBP85 – helps bolster Diageo in a segment that is outperforming the rum category as a whole.

    “The opportunity for Diageo here is two-fold,” Morningstar analyst Philip Gorham tells Just Drinks. “One, roll the brand out geographically across the Diageo platform and get it into new markets. This will require marketing investment but [is] still a fairly low-cost, incremental revenue for the brand.

    “Two, see if there are opportunities to stretch the price points higher. This is a well-positioned brand at $35-$40 a bottle. It is unencumbered by mass-market pricing (they will never get to four-figure prices on Captain Morgan) but it is nowhere near the price heights of Johnnie Walker.

    “In other words, there is a lot of headroom for premiumising the brand further, as Diageo are already doing in Tequila.”

    The value of the deal – EUR260m ($281m), with the potential to reach EUR437.5m ($474m) by 2028 – makes for an interesting comparison with the $725m reportedly paid by Brown-Forman for Diplomático late last year. On an annual, per-case-sold basis, Diageo’s deal stacks up favourably to that of its competitor ($1.5m per case at the initial price paid, versus $1.85m per case for Diplomatico), although Brown-Forman’s brand retails at a higher SRP of around GBP44 per bottle.

    The Jefferies analysts described the risk-reward profile of the deal as “asymmetric, in our view, given the low initial capital outlay and opportunity to leverage Diageo’s strong distribution network”.

    Don Papa – with its distinctive packaging, unique liquid and authentic story – also fits the bill as far as Diageo’s wider M&A strategy is concerned. In recent years, the company has moved away from transformational deals in favour of bolt-on acquisitions in high-growth segments. The group’s 2021 purchase of Chase Distillery and last year’s move for American single malt maker Balcones Distilling are good examples of this strategy in action.

    Gorham sees sense in this approach, stating his belief that “high price points are where the long-term growth is” in spirits.

    “Whether premiumisation takes a breather as major economies enter recession, we’ll have to wait and see but there is huge long-term opportunity at the crossroads of beverages and luxury,” he adds.

    In this context, the move for Don Papa, a fast-growing, high-margin brand in a category that is predicted to continue to continue to premiumise in the coming years, looks like business as usual for Diageo.

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  • Orchestra Private Equity to acquire KFC Korea for 60 billion won

    Orchestra Private Equity to acquire KFC Korea for 60 billion won

    Orchestra Private Equity, a private equity firm based in Singapore, has signed a stock purchase agreement to acquire chicken franchise KFC Korea, according to industry sources on Friday.

    Under the deal signed on Thursday, Orchestra PE will purchase a 100 percent stake in KFC Korea from KG Group, a chemical-to-steel company based in Seoul.

    The transaction has an estimated worth of 60 billion won ($48.3 million) to 70 billion won.

    KFC Korea has been on sale for a year by KG Group which took over the fast food chain in 2017 from another private equity firm CVC Capital Partners.

    To get better control over the fried chicken chain after the acquisition, Orchestra PE signed a separate contract with Yum! Brands, the American operator of KFC to alter its operating system from direct management to a franchise system.

    According to market observers, KFC has struggled to expand its presence in the country due to failure in localization as all decisions had to be made only after consulting with the American headquarters.

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  • Subway mulls sale valuing global business at more than US$10 billion

    Subway mulls sale valuing global business at more than US$10 billion

    American multinational fast-food restaurant franchise, Subway, is exploring a potential sale that could value the sandwich chain at more than US$10 billion, a source said.

    The company, based in Milford, Connecticut, is one of the world’s largest quick-service restaurant chains, with about 37,000 locations in more than 100 countries.

    Founded in 1965 by Fred DeLuca and Dr. Peter Buck, Subway has had rapid growth since opening its first shop but has tapered off in recent years amid intense competition.

    The chain has also pioneered the concept of preparing food in front of consumers in an assembly line fashion, an idea that chains would later adopt such as Chipotle Mexican Grill.

    The source said the process, which is at an early stage, is expected to attract potential corporate buyers and private-equity firms, adding that Subway could still decide against pursuing a sale.

    In 2021, media reports said Subway deliberations for a sale, but the restaurant chain denied it. If the privately held company does sell, the transaction follows several recent attempts to drive growth, including a shift toward multi-unit operators, expansion via automated vending fridges, and a significant menu revamp.

    The chain has made strides with its digital business thanks in part to the launch of Subway Delivery, which lets delivery customers order directly from the chain’s app or website, and other online ordering improvements. In 2021, Subway’s digital sales topped US$1.3 billion, tripling its 2019 digital sales.

    It also began buying out development agents, developers who contracted with the company to sell and oversee franchisees in specific regions of the country—and whose actions were often considered synonymous with the chain’s more aggressive expansion strategies coming out of the great recession in 2009 and 2010.

    The chain has struggled to grow sales since 2014, shuttering at least 6,000 restaurants to rightsize its bloated footprint to less than 21,000 by 2021.

    Despite the aggressive contraction of its store network, roughly 75% of Subway’s US footprint (or 16,000 restaurants) reported a same-store sales increase of at least 7.5% in the finance books of 2021 compared to 2019.

    Subway attributes most of the momentum to July’s launch of “Eat Fresh Refresh,” the largest menu update in the chain’s 56-year history.

    The rollout included more than 20 upgrades—11 new and improved ingredients, six new or returning sandwiches, and four revamped signature sandwiches. Turkey, ham, and steak were elevated and roast beef and rotisserie chicken returned to the menu.

    In November 2022, the chain publicly unveiled its first Grab and Go “smart fridge” filled with pre-made sandwiches, snacks, and drinks.

    The machine debuted in September at the University of California San Diego and the company plans to add more across North America in high-trafficked areas like other college campuses, airports, and hospitals.

  • Nutella Biscuits rolls out in Australian grocery stores

    Nutella Biscuits rolls out in Australian grocery stores

    It has been confirmed that Nutella biscuits are finally being stocked below The biscuit is a global hit, with fans of the brand particularly popular in Europe and the US clamoring for their arrival in Australia for years.

    By Sophie Finn for Daily Mail Australia

    Published: 05:29, 10 January 2023 | Updated: 05:29, 10 January 2023

    It has been officially confirmed that Nutella biscuits are coming to Australia in January 2023.

    Fans of the sweet treat, which is hugely popular in Europe, have been calling for the biscuits to hit Aussie supermarkets for years.

    Italian Biscuits features a creamy heart of Nutella sandwiched between two crunchy biscuits, and a bag of 20 is just $6.

    On January 9th bags of the tempting snack hit the biscuit aisle of all major Aussie supermarkets.

    It has been officially confirmed that Nutella biscuits are coming to Australia in January 2023

    Fans of the sweet treat, which is hugely popular in Europe, have been calling for the biscuits to hit Aussie supermarkets for years. The biscuits feature a creamy heart of Nutella sandwiched between two crunchy biscuits, and a bag of 20 costs just $6.

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  • France’s Danone faces legal action over plastic use and reporting practices

    France’s Danone faces legal action over plastic use and reporting practices

    Some environmental groups have taken legal action against French bottled water and dairy group Danone over its plastic use, accusing it on Monday of failing to sufficiently account for all the plastic used along its production cycles.

    Danone, the world’s biggest yoghurt maker producing infant formula and the popular mineral water brand Evian, said in a statement emailed to Reuters that it was “very surprised by this accusation which we firmly refute”.

    The case, brought at a Paris civil court on Monday, comes as a growing number of non-governmental organizations are acting against large companies by using a 2017 French law establishing a ‘duty of care’ along supply chains to avoid harm to human rights and the environment.

    But unlike a similar case brought against oil giant TotalEnergies to fight a controversial pipeline project in Africa, environmental group Surfrider and its partners, Client Earth and Zero Waste France, say they do not want to launch criminal proceedings against Danone.

    “We want Danone to re-publish its compulsory duty of care report and specifically account for its plastic use, including a concrete strategy to reduce it,” said Antidia Citores, the French spokeswoman for ocean protection campaign group Surfrider Foundation Europe.

    She added that Danone so far did not sufficiently account for all the plastic used along its production cycles from agriculture to packaging and was not telling the public how exactly it intends to reduce its use.

    It is now up to a judge to decide whether or not to open a lawsuit.

    “Danone has long been recognised as a pioneer in environmental risk management”, the company said in the statement to Reuters, adding it had brought down its plastic use by 12% between 2018 and 2021.

  • Maximus unveils two new summer flavours

    Maximus unveils two new summer flavours

    Frucor Suntory beverage brand, Maximus, continues to raise the stakes in the sports category with its newest product, Maximus Ultra. 

    Maximus Ultra is the first hybrid sports drink in Australia to contain BCAAs (Branched Chained Amino-Acids) to support muscle recovery and performance. It also contains 50 per cent more electrolytes than regular Maximus as well as B Vitamins, B3, B5, B6 and B12. 

    Maximus Ultra adds a lot of value to Maximus’ starting line-up with an additional two flavours Tropical and Berry, Maximus senior brand manager Kate Taylor said. 

    “Besides being a market first and a unique product in the sports category, it also remains true to Maximus’ core – to give consumers the extra hydration they need to work, play and everything in-between,” Taylor said. 

    “Like the rest of the players in the team, Maximus Ultra also helps hard working

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  • Starbucks set to open 100th store in Vietnam

    Starbucks set to open 100th store in Vietnam

    Starbucks plans to open its 100th store in Vietnam in the second quarter of this year, a decade after first coming to the country, and keep expanding further.

    The U.S. chain now has 87 outlets in seven localities, 50 of them in Ho Chi Minh City.

    It has over 800 staff and 200 coffee “masters” it has trained.

    It is among the few foreign players to remain in the competitive Vietnamese market, but its number of stores is modest compared with some local chains such as Highlands Coffee (592 stores) and The Coffee House (154).

    Its Vietnam general manager, Patricia Marques, told reporters Tuesday the chain sees new opportunities in localities such as Binh Duong and Quy Nhon provinces.

    Vietnam is forecast to have 5,200 coffee chain stores in 2025, according to U.K.’s Allegra World Coffee Portal, which means huge competition for chains seeking to expand.

    Already some chains are scaling down. Last month PhinDeli closed some stores at prime locations while food company KIDO divested from TTV, the operator of the Chuk beverage chain.

    But on the other hand, Highlands and Phuc Long continued to open new outlets.

    The Coffee House plans to reopen its Signature stores this year, while Passio Coffee, after 15 years of selling mostly takeaway products, is now opening at more locations and offering on-site services.

    New players such as Katinat, Phe La and Cheese Coffee are also in the mix.

    Finding a suitable location is also a challenge, Marques said, pointing out that while in Thailand property developers often seek partnerships with major brands before they start building malls, in Vietnam this is not the case.

    Starbucks posted record global revenues of US$32.3 billion in financial year 2022 (ending October 3), a 11% growth.

    It eyes 10-12% growth this year.

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  • Vietnam reaps new fruit export benefits

    Vietnam reaps new fruit export benefits

    Several Vietnamese fruits have found their way to major markets in China and the U.S. in 2022, opening up the door for Vietnam to send more high-quality produce overseas.

    After four years of negotiation, Vietnam finally exported its first batch of fresh durian to China for the first time in September The fruit came from the central highlands province of Dak Lak.

    In October alone, durian exports to China surged 4,000% year-on-year to $50 million, according to Vietnam Customs. It exceeded dragon fruit as the top fruit exported to China.

    China has so far approved 113 codes for durian farming and packaging areas in Vietnam, up from 76 in September. The figure is set to increase as there are still 300 codes awaiting approval.

    “If China approves all of these codes, Vietnam will have an abundant durian supply to China,” said statement by the Plant Protection Department at the Ministry of Agriculture and Rural Development.

    Durian prices in Vietnam have nearly doubled year-on-year to VND70,000-90,000 per pound in southern provinces.

    “Durian has become a new rising star replacing dragon fruit exports to China,” said Dang Phuc Nguyen, General Secretary of the Vietnam Fruit & Vegetables Association (VinaFruit).

    He added that thanks to Vietnamese trade agreements and protocols with China and the latter’s relaxing of Covid-19 policies, durian and other Vietnamese fruits are easily exported to China.

    This all stands in stark contrast to last year when hundreds of fruit containers were stuck at Vietnam’s northern border gates due to Covid-19.

    Agriculture, forestry and seafood exports surged 11.8% year-on-year to $49.04 billion in the first 11 months. Agriculture alone accounts for more than 42% of that figure, according to the Ministry of Agriculture and Rural Development.

    Vegetables and fruits are among Vietnam’s top eight biggest agriculture export items, along with coffee, rubber and rice.

    Grapefruit in November became the seventh fruit officially exported by Vietnam to the U.S., one of the most difficult markets globally.

    Industry insiders say that Americans consume about 12 million tons of fruit a year, but domestic supply accounts for only 70% of demand.

    Vietnamese exporters have been trying to take advantage of this opportunity. Exports to the U.S. surged 18% year-on-year in the to $240 million in the first 11 months. This is a quadruple from the total figure of $59 million in 2015.

    Other fruits that have also found the way to the global market include lime and pomelo shipments to New Zealand starting from November 15, 2022. This country has already been buying mango, dragon fruit and rambutan from Vietnam.

    Nguyen said that now that more Vietnamese fruits have found their way to overseas, it is even more important that buyers’ demands are met in terms of farming and delivery.

    “Whether these markets and opportunities last is up to the farmers and the exporters.”

    Ngo Tuong Vy, CEO of exporter Chanh Thu, warned that China is not yet a sustainable market for Vietnam as some regions are still struggling with Covid-19 and their safety measure policies are unpredictable.

    The agriculture ministry has set a surging $5 billion target for fruit exports by 2025, up from last year’s $3.1 billion forecast.

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  • Mango export to South Korea rises

    Mango export to South Korea rises

    Vietnam exported 1,700 tonnes of mango to South Korea for $7.4 million over the past 11 months of 2022, up 19% in volume and 25% in value year-on-year, according to the Agency for Foreign Trade under the Ministry of Industry and Trade.

    These figures helped Vietnam become the third largest mango supplier for the South Korea in the period, the agency said, adding that the average export price of Vietnamese mangoes hit over $4,230 per tonne, 5% higher than that of the same period in 2021.

    The agency also cited statistics from the Korea International Trade Association (KITA) as saying that this country’s mango import in the 11-month period reached 22,000 tonnes, worth $95.3 million, marking yearly rises of 4% in volume and 8% in value.

    Thailand and Peru were the two largest mango suppliers for the South Korea in the period, accounting for 81.2% of this country’s total mango imports.

    According to the department, Korea has a high demand for fresh fruit. Each year, the market imports over $1.6 billion worth of fresh fruit and this number has been growing significantly.

    However, Vietnam’s fresh fruit now makes up a very modest market share in the South Korea. Therefore, there remains room for Vietnamese firms to foster their exports of fresh fruits, typically mangoes to this market.

    In order to promote exports to this market, trade experts recommend that businesses needed to improve their competitiveness and product quality. This was the core element to meet the increasingly strict requirements of the Korean market.

    In addition, enterprises were advised to develop appropriate production and business plans, actively operate according to the market mechanism and have solutions to participate in the production chain and distribution network of Korean enterprises. That would help businesses take advantage of their strengths, their brand, as well as their development experience in the market.

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  • Vietnam remains top global peppercorn exporter

    Vietnam remains top global peppercorn exporter

    The volume of Vietnam’s pepper exports to important markets has decreased this year, but the country has retained its top spot in the global rankings, heard a conference held in Ho Chi Minh City on December 21.

    The Vietnam Pepper Association Chairwoman Hoang Thi Lien said in 2022, the product was at a disadvantage due to inflation and economic recession in many markets, and China’s zero-Covid policy, hence a reduction in export volume.

    Vietnam has shipped about 230,000 tonnes of peppercorns overseas this year for more than $970 million, down 13% in quantity but up 2% in value annually. The export turnover of all spices is forecast to hit $1.5 billion.

    Vietnamese enterprises import pepper from other countries such as Brazil and Indonesia for processing, then re-export for higher value. From the beginning of the year to the end of November, the nation purchased 34,273 tonnes of the product, an increase of 48.9% against the same period in 2021.

    Vietnam has an advantage over other pepper production countries such as Indonesia, Malaysia, India, Sri Lanka and Cambodia thanks to the the EU-Vietnam Free Trade Agreement, Lien said. Under the trade pact, the EU’s import tax on Vietnamese ground pepper has been reduced from 4% to 0%.

    The proportion of processed goods currently accounts for about 30% of its total export turnover, she added.

    The expert suggested the sector work to capitalise on untapped potential in many markets, particularly Eastern Europe.

  • Everstone Group to bring Lavazza back to India

    Everstone Group to bring Lavazza back to India

    Italian major Lavazza has joined hands with private equity company Everstone Capital to reenter India’s retail landscape.

    A franchise pact has been signed between Everstone and Lazazza to run the latter’s coffee outlets in India, according to a media report.

    According to the report, both the companies have signed a deal several weeks ago. As part of the agreement, PE major Everstone will also sell also sell Lavazza coffee vending machines in India.

    The US-based food chains Burger King and Subway are being operated by Everstone, and the coffee chain Lavazza would supplement its portfolio.
    Burger King outlets have BK coffee shops, and Everstone intends to add Lavazza across its Subway stores.

    Lavazza shuttered India operations citing mounting operational expenses several years ago. In a bid to focus on its profit making fresh & honest coffee brewing machine business, the Italian group sold Barista Coffee chain to Carnation Hospitality for Rs 100 crore in 2014. The company changed ownerships four times to turn the brand viable.

    India’s coffee culture has brought in Canada’s Tim Hortons, which plans to open 100 outlets over the next four years, US-based Starbucks, which is a major coffee chain player in India, also runs 300 outlets across the county.