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.

  • The Coffee House owner reports loss of $12 mln

    The Coffee House owner reports loss of $12 mln

    Seedcom Joint Stock Company, owner of The Coffee House and delivery company AhaMove, reported a loss of VND287 billion (US$11.96 million) for the first half, a 11% rise year-on-year.

    Seedcom CEO Nguyen Hoanh Tien said that the losses stemmed from two reasons, the first being the intensified investment and expansion into the B2B segment with omni-channel sales management solution Haravan, specialized F&B sales solution iPOS and a new unit to distribute consumer goods, CPG.

    Depreciation in the retail segment, the result of store development in recent years, was the other reason, he said.

    “By the second half of this year the financial results will certainly be better when business results are more positive.”

    The company’s chairman, Dinh Anh Huan, said Seedcom seeks to grow by 500% in 2022-25 and begin generating profits next year.

    Established in 2014, Seedcom also owns Giao Hang Nhanh (delivery), Juno, Hnoss (fashion), and Kingfoodmart (supermarket).

  • Bangladesh to import rice from Vietnam and India to replenish reserves

    Bangladesh to import rice from Vietnam and India to replenish reserves

    Bangladesh is finalizing deals with Vietnam and India to import a total of 330,000 tonnes of rice as it races to replenish reserves and cool domestic prices, two officials with direct knowledge of the matter said on Monday.

    Soaring prices of the staple grain for the country’s 165 million people pose a problem for the government, which plans to expand cut-price rice sales to help people hard-hit by high costs.

    The south Asian country will buy 100,000 tonnes of parboiled rice from an Indian public sector firm and 200,000 tonnes of parboiled rice and 30,000 tonnes of white rice from Vietnam, the government officials said.

    The price for the parboiled rice from Vietnam will be $521 a tonne and white rice $494 a tonne, said the officials, speaking on condition of anonymity because the deals have not been made public.

    The price for rice from neighboring India will be $443.50 per tonne via seaports and $428.50 per tonne via railways, the officials said. All the prices included freight, insurance and unloading costs, they said.

    “Preparations are underway to sign the deals soon,” one of the officials said, adding the rice would be delivered within two to three months after the signing.

    The Bangladesh government is also holding talks with Myanmar to import rice, the officials said, putting aside a rift over the Rohingya refugee crisis.

    Bangladesh this week slashed import duty on rice to 15% from 25%, cutting it for the second time since July in a bid to boost private imports.Its private rice import plan, however, faces a setback with only 36,000 tonnes bought since July, after the government allowed private traders to import nearly 1 million tonnes of the staple grain after slashing duty to 25.0% from 62.5%.

    The government will begin selling rice at a cheaper rate for 5 million poor families and expand such sales from September, in an effort to rein in surging domestic prices, which saw yet another uptick after it hiked domestic oil prices early this month.

    Bangladesh, traditionally the world’s third-biggest rice producer with around 35 million tonnes annually, uses almost all its production to feed its people. It still often requires imports to cope with shortages caused by floods or droughts.

  • Craft brewers increasing production but downtime is hindering growth

    Craft brewers increasing production but downtime is hindering growth

    New research reveals that while craft brewers increased production by 7.6 per cent compared with the previous three months, the industry average for actual production time remains just 45 per cent.

    The findings come from the Craft Brewers Benchmark Report, a quarterly report prepared by manufacturing performance software company OFS which provides insights into how data can be used to improve production efficiency in the craft brewing industry.

    The report analysed the production of millions of litres of beer by primarily Australian, New Zealand and U.S. craft breweries between April and June this year and looked at key performance benchmark data and overall equipment effectiveness (OEE).

    “This is an industry that’s thriving while leaving so much potential on the table, OFS CEO James Magee said. “That luxury can’t last forever – we need a mindset shift in how the industry collects and leverages data to improve productivity.”

    Despite the challenges, craft brewers scored particularly well for waste efficiency with only two per cent of beer produced that did not end up in cans or bottles, a 28 per cent improvement compared with the previous three months.

    On average, 6517 units of craft beer were produced per hour, 74.2 per cent behind the potential output of 11,353 per hour. On the other hand, unplanned downtime accounted for 25.46 per cent of production time, in line with the previous three months..

    As for the OEE score, the industry earned an average of 44 per cent, a slight increase from 43 per cent.

    Magee noted visibility is key to further improving efficiency, as when craft brewers can see an opportunity in front of them, they don’t miss it.

    “It’s telling that craft brewers manage product waste so well – they barely leave a drop behind,” he said. “Wasted time, however, is harder to view without the right tools in place, and it’s too easy to generalise and make assumptions about output, downtime, and changeovers when you’re relying on a busy crew updating an excel sheet or piece of paper.

    “What we’re hoping to do with these industry snapshots is show the efficiency potential that’s there when craft brewers surface these insights,” Magee added. “It isn’t rocket science, it is literally just an accurate real-time view of what’s happening on the line, and too few have it.”

  • Fonterra takes first step into non-dairy products

    Fonterra takes first step into non-dairy products

    Fonterra said it had worked with DSM, a global nutrition and bioscience company, since 2019 to speed up the making of proteins with dairy-like properties using precision fermentation. The partnership had already created intellectual property and filed patents, the statement said.

    Jonathan Boswell, program leader for complementary Nutrition at Fonterra said the patents were confidential because they were not in the public domain yet. Dairy nutrition would remain Fonterra’s core strength, the company said.

    But the food preferences of some consumers were changing to non-animal products. New technologies had a place alongside dairy, the company said. There would be a role for both dairy and other sources of nutrition to feed the world’s growing population, the company said.

    Food scientist Anna Benny, who researched how precision fermentation would disrupt the dairy market, said most milk produced in New Zealand was dried to make whole milk powder. This was sold as a commodity and acted as an ingredient in everything from yoghurt drinks to ingredients in the medicine.

    Benny said the million-dollar question was what would happen to the milk price and to farmers when whole milk powder could be replaced by products made by using precision fermentation.

    “People are still investing in farms and [farm-related businesses] that will not pay back in the next seven to 10 years. All the signals we are getting from industry players and the government is that milk is selling well and that dairy farmers are propping up the economy. It will be catastrophic for the economy if milk powder fails,” Benny said.

    New Zealand’s current reliance on whole milk powder meant it was overexposed to such risks. There were not enough signals from the government and the industry that the dairy industry was at risk, Benny said.

    Once companies were able to copy whole milk powder through precision fermentation, could make it on a large scale, and its price was similar or lower than whole milk powder from dairy, then there would be a tipping point, Benny said.

    She said Fonterra’s partnership was similar to companies overseas.

    In the United States, Perfect Day, which manufactured animal-free dairy alternatives, was working with ADM, she said.

    Waikato dairy farmer Pete Morgan said at its core Fonterra was a food company. If it looked decades into the future, it would see precision fermentation was part of the answer to feeding a growing world population.

    “The answer isn’t an us dairy and them other technologies, the answer will come from everybody. A company with a long-term focus would have to look at such technologies,” Morgan said.

    Morgan said it was widely known that if the world was to have enough food to meet its nutritional requirements by 2050, the amount of food being produced would have to double.

    Milk was important as a raw product, but Fonterra was not just about milk but had expertise in food manufacturing, intellectual property, supply chains and customers, Morgan said.

    There would be farmers who struggled to understand why Fonterra made this move, he said, but he believed Fonterra had a long-term view.

    There was disruption coming to the dairy market, and it was better to head into that disruption with knowledge, than to wake up one day and have fallen behind, Morgan said.

  • Seafood exports growth slows due to global inflation

    Seafood exports growth slows due to global inflation

    Vietnam’s seafood exports have been slowing down since July as inflation takes a toll on consumption in the U.S., E.U. and U.K.

    Exports to the U.S. declined by 30.5% year-on-year in July after inflation in that country hit a 41-year high the previous month, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).

    Black tiger shrimp exports were down 69% and that of pangasius fish, 4%. But tuna shipments increased by 34% and that of squid by 90%. But exports were up 30% in the year-to-date.

    Exports to the E.U. rose by 18% year-on-year in July, well down from the 31% in the second quarter.

    Inflation has been skyrocketing in the bloc, with the Russia – Ukraine tension causing food prices to climb, VASEP said, adding that the falling euro also contributed to declining consumption.

    Exports to the U.K. fell by 12% year-on-year in the second quarter and 18% in July, as inflation raged at a 40-year high.

    Shrimp and tuna exports were down 27% and 54%.

    Exports to China rose by 25% in July, but authorities there are still monitoring the spread of Covid-19 closely at the border and will ban any exporter whose cargo is found infected.

    With seafood exports reaching nearly reached $6.7 billion in the first seven months, VASEP is optimistic about achieving $10 billion for the year.

  • Taiwan sends back Vietnamese noodles for containing banned substance

    Taiwan sends back Vietnamese noodles for containing banned substance

    Taiwan has returned 1.44 tons of Vietnam’s Omachi instant noodles saying they contain high levels of carcinogenic ethylene oxide.

    The Taiwan Food and Drug Administration has determined that the batch of noodles, imported by Chinese company Qianyu, contains 0.195 milligrams of ethylene oxide per kilogram, which exceeds Taiwan’s standards.

    Ethylene oxide is banned in food in Taiwan as authorities consider it a carcinogen as long exposure to it could increase the risks of cancer and some neurological diseases.

    Masan Consumer, the producer of the noodles, said that it did not sell the noodles to Qianyu, even though it does produce noodles for the Taiwan market.

    Each country and territory has its own food standard and therefore Masan Consumer produces products specifically for each country and territory.

    “We have strict terms with distributors to prevent them from exporting products from one market to another.”

    Masan Consumer affirms that the Omachi noodles meet Vietnam’s food standards and are safe for consumers.

    Vietnam’s Ministry of Industry and Trade is looking into the issue.

    Last August, several batches of instant noodle products by Vietnamese businesses were also recalled by the E.U. for heightened levels of ethylene oxide.

    In July this year, Germany has issued warnings about certain imported Vietnamese instant noodle products that contain heightened levels of ethylene oxide.

  • Imported pork prices dip to record low over low demand

    Imported pork prices dip to record low over low demand

    Import pork prices have fallen to a record low at half their domestic equivalents due to modest demand at restaurants and hotels.

    Import pork prices have fallen by 36-40% year-on-year with ribs costing around VND88,000 ($3.76) per kilogram, half the domestic figure.

    Hanh, a pork seller in Ho Chi Minh City’s District 12, said that there has been weak demand for imported pork since the beginning of the year.

    “We sell imported pork mostly to restaurants, but consumption has been falling there, causing prices to drop.”

    Hanh has lowered her import by 30% year-on-year.

    Thanh, a seller in Go Vap District, stopped selling imported pork from Russia two weeks ago.

    “Only a few customers come by each day, and I was recording losses. I decided to stop selling it.”

    Tran Hoan, a media representative for a pork importer in HCMC, said that restaurants and hotels are the biggest buyers of this product, but they have not been buying because consumption is week.

    In the first six months, pork imports fell 48.7% in value to $96 million, according to Vietnam Customs.

    Brazil accounted for 35.1% of the value, followed by Russia, 25.7%, and Germany, 16.6%.

    An average kilogram of imported pork is priced at VND50,000-60,000, compared to domestic fresh pork prices of VND100,000-170,000.

  • Domino’s Pizza buys businesses in three SEA markets

    Domino’s Pizza buys businesses in three SEA markets

    Domino’s Pizza Malaysia is set to become part of the largest Domino’s network outside of the United States (US) via a proposed acquisition by Domino’s Pizza Enterprises Ltd (DPE).

    DPE is an Australian-based group that operates more than 3,400 Domino’s stores in ten markets around the world.

    DPE has entered into a binding agreement with Mikenwill (M) Sdn Bhd, which owns 100 per cent of

    Dommal Food Services Sdn Bhd, the master franchise holder in Malaysia; and Impress Foods Pte Ltd, which owns 100 per cent of Domino’s Pizza Singapore and 65 per cent of Domino’s Pizza Cambodia; as well as minority shareholders in Cambodia for the remaining 35 per cent stake.

    “This will see DPE acquiring 100 per cent of the Domino’s Pizza businesses in Malaysia, Singapore, and Cambodia, comprising 287 corporate stores across these markets.

    “The binding agreement entails the acquisition of the corporate stores and franchise rights held by Mikenwill (M) Sdn Bhd and Impress Foods Pte Ltd. The acquisition is expected to be completed by the end of 2022,” the pizza maker said in a statement today.

    Domino’s Pizza Malaysia, Singapore, and Cambodia group chief executive officer Ba U Shan-Ting said in tandem with the acquisition, the company aims to expand the number of stores to more than 600 over the long term, setting it on the path to becoming the largest pizza chain in the three countries.

    Domino’s Pizza Malaysia is the largest Domino’s market in Southeast Asia, managed by Dommal Food Services Sdn Bhd with 240 stores in the country while Impress Foods Pte Ltd manages the Singapore and Cambodia markets with 38 and nine stores respectively.

    “DPE’s latest strategic acquisition of Malaysia, Singapore, and Cambodia is in line with its ongoing expansion plans, particularly in Asia.

    “DPE’s impressive track record is reflected in its extensive international footprint which began in the Australian market, with Taiwan being the most recent addition to its portfolio, bringing its total presence to 13 countries around the world.

    “DPE aims to achieve a store count of 3,000 stores in Asia by 2033,” the company said.

     

     

  • Leading seafood firm to issue 1:1 bonus

    Leading seafood firm to issue 1:1 bonus

    Major listed seafood exporter Minh Phu Seafood JSC is set to issue bonus shares at a ratio of 1:1.

    It is expected to be done this year by capitalizing reserves, and will double the company’s charter capital to VND4 trillion (US$170.9 million).

    Minh Phu also plans to pay a cash dividend of VND2,300 per share.

    Its revenues in the first six months rose 43% to VND8.7 trillion, but profits fell 15% to VND236 billion due to bad debt provisioning and rising financial costs.

    It eyes revenues of VND18.96 trillion and profits of VND1.27 trillion for the full year.

  • 7-Eleven doubles coffee prices as it caves in to inflation

    7-Eleven doubles coffee prices as it caves in to inflation

    7-Eleven’s $1 coffees and Slurpees are set to become the latest victims of Australia’s cost of living crisis, as the service station chain buckles under the pressure of inflation.

    In another blow for Aussies, coffee prices will be bumped up at 7-Eleven stores across the country to address the retail company’s rising operational costs.

    A regular cup of coffee at the service station will double in price as of Tuesday, October 4, becoming $2, while large coffees increase to $3 and super cups to $3.50.

    Those wanting to save some extra coin, however, can bring their own reusable cup in-store to save 50c on their morning cuppa.

    The service station’s $1 coffee isn’t the only caffeine hit you’ll be forking out more for, with the price of iced coffees and ice cream coffee melts set to rise to $3 along with the store’s hot chocolates.

    The price hike is the first in over a decade, with the retail store’s regular-sized coffee remaining at $1 since 2009.

    As for Slurpees, a small will become $1.00, a large will move to $1.50, a super to $2.50 and a mega will become $4.50.

    7-Eleven CEO and managing director, Angus McKay, said it was no longer possible for the retail company to absorb costs.

    “Although this is the first price change in more than a decade, a single $2 gold coin for a regular coffee remains among the best value offers in the industry,” Mr McKay told NCA NewsWire on Monday.

    “We will continue to provide our customers with great value and great quality, while ensuring our prices are sustainable for our store owners, our suppliers and our communities,” he said.

    Along with encouraging customers to use a reusable cups, Mr McKay said people could expect further announcements in the next few weeks which will target the company’s sustainability goals.

    “Our new offer is fair value for our community, store owners and suppliers, and we’ll keep working to make it better,” he said.

    Victoria, NSW, ACT, QLD and Western Australia are home to 720 7-Elevens, with more than 450 small family-owned businesses in the service station franchise network.

    The popular drinks add to a growing list of items becoming increasingly unaffordable, with petrol, energy and food costs putting thousands of Aussies under pressure.

    The annual inflation rate jumped to 6.1 per cent in the year to June, the highest level in more than two decades.

    Treasurer Jim Chalmers has warned Australians that the “confronting” figure will get worse before it gets better.

    “It’s going to be a difficult time ahead; we expect it to get higher,” he said in July.

    “It will get tougher before it starts to ease.”

  • Vinacafe sales up 19% in H1

    Vinacafe sales up 19% in H1

    Leading instant coffee producer Vinacafe Bien Hoa reported a 19% jump in sales year-on-year in the first half ending June to VND950 billion (US$40.6 million).

    Its post-tax profits were VND190 billion, up 21%.

    Vinacafe instant coffee and Wake-up 247 coffee-flavored energy drinks remained its top products with combined sales of VND800 billion. The rest came from instant cereal.

    For the full year, it targets revenues of VND2.5-2.9 trillion and profits of VND500-600 billion.

    The management said the company would promote coffee-based beverages and roll out new products to meet “the unmet needs of Vietnamese customers.”

    Last year, sales and profits were VND2.2 trillion and VND430 billion.

    Masan Beverage, a subsidiary of conglomerate Masan Group, owns 98.79 percent of Vinacafe.

  • Grocery chain Bach Hoa Xanh to profit in Q4

    Grocery chain Bach Hoa Xanh to profit in Q4

    Bach Hoa Xanh is set to become profitable in the last quarter this year after closing 400 ineffective outlets in the first seven months, Mobile World Chairman Nguyen Duc Tai has said.

    The bulk closure is part of the company’s plan to renovate the grocery chain and remove seven low-performing product categories, he told shareholders at a recent meeting, adding that the plan is nearly complete.

    “It is true that we closed hundreds of outlets. But what happened? Total revenue continued to rise.”

    There were 1,735 Bach Hoa Xanh outlets by the end of last month, with a monthly average revenue of VND1.3 billion recorded by each.

    The chain’s revenue has been rising monthly since March and hit VND2.35 trillion in July, accounting for 18.6 percent of Mobile World’s total.

    In the 2017-2020 period, Bach Hoa Xanh pursued to offer customers a better shopping experience than traditional markets, and there were times when it opened a new outlet every day with hundreds of employees recruited each month.

    But now Mobile World wants to transform the chain’s model from “modern market” to “mini supermarkets” as it seeks to make customers feel like they are shopping at big stores.

  • San Pellegrino unveils new flavour in Essenza range

    San Pellegrino unveils new flavour in Essenza range

    S.Pellegrino Essenza has added a new Black Orange & Black Raspberry flavour to its range, joining the existing line-up of Lemon & Lemon Zest and Tangerine & Wild Strawberry.

    S.Pellegrino’s Essenza is a tasteful range of Italian sparkling mineral water with a subtle hint of fruit flavour, gentle bubbles, and no added sweeteners with zero calories.

    Essenza Blood Orange & Black Raspberry has a delicate scent and taste, beginning on a sweet note and ending with the taste of freshly squeezed orange. It pairs with rich, complex foods from red meat dishes to creamy, light pasta.

    S.Pellegrino Essenza’s range is a great on-the-go product with the can format; plus, it’s recyclable. It also works as a non-alcoholic mocktail spritzer option.

    It is available now in Woolworths and independent supermarkets at $15 per eight-pack.

  • Russian duo hail Stars Coffee as successor brand to Starbucks

    Russian duo hail Stars Coffee as successor brand to Starbucks

    A restaurateur and rapper duo unveiled Stars Coffee on Thursday, reopening the chain of coffee shops in Russia formerly owned by Starbucks Corp, the latest major company rebranding after a months-long Western corporate exodus from the country. At a packed launch in central Moscow, rapper Timati presented the new brand, whose logo features an image of a woman with a star above her head, alongside co-owner and restaurateur Anton Pinskiy, before shops start opening on Friday. Banned from using the

    Banned from using the Starbucks logo, Timati said they had sought to find some continuity, namely the circular shape and “female gender”, which he said contrasted nicely with the brown, cigar-like “masculine colour” in the new logo.

    “People’s perceptions may be different,” said Pinskiy. “But if you compare, then apart from the circle, you won’t find anything in common.”

    Starbucks declined to comment on the similarity of the logo and name, but referred to an earlier statement in which it said the company had made the decision to exit and no longer had a brand presence in the Russian market.

    Since Starbucks had its own resource and production base, Timati said the duo had to find new suppliers, but they had encountered no problems.

    Stars Coffee imports beans from Latin America and Africa, Pinskiy said, with suppliers of other items based in Russia.

    “We just found other suppliers, found the right roasters, and because the baristas mixed it all correctly, we have a product that we think will be competitive,” he said.

    Seattle-based Starbucks, which helped popularise takeaway coffee in a traditionally tea-loving society, said it would exit Russia after nearly 15 years in late May.

    Starbucks had 130 stores in Russia, operated by its licensee Alshaya Group, with nearly 2,000 employees in the country. Pinskiy said shops would gradually reopen throughout August and September.

    Wider Trend

    Global franchise operator Alshaya, established in Kuwait, had lost interest in doing business after Starbucks pulled its brand from Russia, Timati said. Alshaya did not immediately respond to a request for comment.

    “We won the tender – there were a lot of participants – acquired it and made our own brand,” he said.

    The deal mirrors a wider trend among Western brands, which has been changing the country’s retail and corporate landscapes as the conflict in Ukraine enters its sixth month.

    Renault sold its majority stake in carmaker Avtovaz to a Russian player for just one rouble, while McDonald’s Corp, whose restaurants have now become Vkusno & tochka, did not disclose a figure.

    Both of those deals included buyback options, but Pinskiy said that didn’t apply to Starbucks due to the franchise model it operated under in Russia.

    He declined to disclose figures concerning the deal with Alshaya. “We have invested as much as we paid them,” Pinskiy said. “This is (an) expensive pleasure.”

    The pair said they were interested in more acquisitions, but gave no further details.

    While the partnership may appear unlikely, Timati, one of Russia’s most famous rappers, co-founded the Black Star Burger chain in Russia, which sells a “Timati Burger”.

    He is also known for his support of the Kremlin and in 2015 released a track containing the lyrics “President Putin is my best friend”.

    Pinskiy, who earlier this month told Russian reporter and political activist Ksenia Sobchak that he had never tried coffee in his life, has a string of restaurants in his portfolio, including a joint project with Timati, REDBOX, which serves Pan-Asian cuisine.

  • Golden Circle launches a new low-sugar range

    Golden Circle launches a new low-sugar range

    Golden Circle has released a delicious new range of fruit drinks with 50% less sugar, on average, compared to the Golden Circle Fruit Juice range and no artificial sweeteners, making them an alternative for those Aussies who want to enjoy drinking Golden Circle fruit juice but want to reduce their sugar intake.

    “We understand that Aussie families are looking for an alternative in their drinks. With 50% Less Sugar fruit drink we are bringing sunshine and joy back so that families can enjoy the taste of sunshine in a glass, with half the sugar,” said Sachin Rajpal, Head of Marketing – Beverages at Kraft Heinz.

    The new 50% Less Sugar range from Golden Circle includes the great taste of Golden Circle that consumers know and love, just with 50% less sugar. Available in three flavours including Orange, Apple and Pear, Pine & Pash. The convenient 2-litre packs can be stored at home for the times you’d like to share a glass of sunshine with family and friends.