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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.

  • McDonald’s eyes selling its South Korea unit

    McDonald’s eyes selling its South Korea unit

    McDonald’s Korea, the local unit wholly owned by the US fast-food giant, is seeking a new owner — joining the latest burger chain sales rush here.

    The company confirmed Friday that its US headquarters is selling its entire stake in the Korean unit as well as its business license after its first failed attempt six years ago.

    According to news reports, Mirae Asset Securities, the deal’s lead manager, plans to send letters as early as next month to invite potential bidders.

    With the addition of McDonald’s Korea, the largest fast-food chain by revenue here, four out of six major burger franchises — including Burger King, KFC and Mom’s Touch — are looking for new owners.

    Hong Kong-based Affinity Equity Partners is selling Burger King Korea, along with the burger chain’s Japanese unit. Meanwhile, Korean chemicals conglomerate KG Group is seeking an exit after its five-year ownership of KFC Korea. Mom’s Touch, a home-grown chicken burger chain owned by private equity firm Korea F&B Holding, recently delisted from the nation’s second bourse Kosdaq in a move to search for a new owner.

    Unlike the four, the remaining Lotteria and No Brand Burger are subsidiaries under retail giants Lotte and Shinsegae, respectively.

    The valuation of McDonald’s Korea is yet to be estimated, but market forecasts put it much higher than 2016’s 300 billion-500 billion won ($234 million-$469 million). Crosstown rival Burger King is currently valued at around 1 trillion won.

    US private equity giant Carlyle Group is cited as one of the potential buyers of McDonald’s Korea. In 2016, when the company was put up for sale, Carlyle created a consortium with Maeil Dairies — the nation’s leading dairy company — but later backed out from the deal. After its failed attempt to take over the Korean unit, it acquired the Chinese and Hong Kong branches in 2017.

    Along with the deal price, the US headquarters’ push to maintain its control over the Korean unit even after an exit could become a key factor in the acquisition talks. In 2016, the US head office insisted that it resume quality control of burger products and receive royalty payments from McDonald’s Korea, which evidently became another deal breaker.

    According to data from the Financial Supervisory Service, the Korean unit has paid 54.3 billion won in 2021 and 50.1 billion won in 2020 in commission payments for the US headquarters.

    Industry watchers say growing demand for premium burgers has led to heated competition in the market and an influx of newcomers. The food unit of Daewoo Development recently launched Good Stuff Eatery, a handcrafted burger chain frequented by former US President Barack Obama. BHC Group and Hanwha Solutions are poised to open Korean branches of Super Duper Burgers and Five Guys this year.

    As of 2021, McDonald’s Korea operates 404 stores nationwide. It posted 867 billion won in sales, up 9.7 percent from a year earlier, while logging 34.9 billion won in net losses.

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  • Banana exports to China boom despite Covid restrictions

    Banana exports to China boom despite Covid restrictions

    Banana exports to China increased by 10 percent in the first five months though total vegetable and fruit exports to that country were down 28 percent.

    Vietnam was China’s largest supplier of bananas at 742,000 tons or 43 percent of its total imports, according to the Vietnam Fruit & Vegetables Association (Vinafruit).

    Vo Quang Huy, director of agriculture firm Huy Long An Co. Ltd, said his company’s banana exports to China were up almost 30 percent year-on-year despite the Covid-19 restrictions and safety measures in place there.

    Nguyen Van Cu, director of a northern exporter, agreed, saying his company’s exports doubled to around 500 tons.

    “Prices have surged from VND3,000 (13 U.S. cents) a kilogram last year to VND5,000-8,000.”

    Vinafruit chairman Dang Phuc Nguyen attributed the rise to falling output in China, where banana farms have been plagued by Fusarium wilt, a lethal fungal disease that has no cure, and rising input costs.

    But packaging and logistic costs of up to VND13,000 a kilogram eat up profits, exporters said.

    They expect exports and prices to rise sharply in the second half of this year.

    Vietnamese exports need to improve their quality and origin traceability to increase their chances of entering the Chinese market, Nguyen added.

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  • Fruit exports to China slump on tightened Covid-19 restrictions

    Fruit exports to China slump on tightened Covid-19 restrictions

    Vietnam’s vegetable and fruit exports to China fell 28 percent year-on-year to $625 million in the first four months as the major importer extended its zero Covid strategy.

    The plunge resulted in a 14 percent drop in total fruit and vegetable export value, as China accounts for over 50 percent of Vietnam’s $1.17 billion worth of fruits and vegetables export.

    China has been tightening control over imported agro products through stricter monitoring of farm and packing facilities, said Le Thanh Tung, deputy head of the Department of Crop Production under the agriculture ministry.

    Its stringent lockdowns have also lengthened the export negotiation process, with Chinese experts unable to inspect farming areas in person.

    Chinese authorities have also strengthened quarantine regulations and clearance procedures, causing congestion of fruit trucks at border gates.

    On May 23, some 815 and 287 trucks were stuck in the northern provinces of Lang Son and Quang Ninh, respectively, with 35 percent of them carrying fresh fruits.

    Tung also pointed out that Vietnamese farmers were suffering skyrocketing input costs, driven by higher fertilizer and pesticide prices.

    Vietnam mainly exports fresh fruits and other agricultural produce due to limited domestic capacity in processing, so the sector has been severely impacted by adverse conditions.

    Tung called on the agriculture ministry to restructure the production chain of agro produce, including issuing guidelines on building chain-based logistical supply systems.

    It is also necessary to boost cooperation with global partners to open up new markets, he said.

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  • Snack chain Aji Ichiban closes all Hong Kong stores

    Snack chain Aji Ichiban closes all Hong Kong stores

    Hong Kong snack food franchise Aji Ichiban has closed all of its stores in the territory after suffering significant losses as Covid-19 caused a slump in overseas visitors, The Standard reports.

    The company’s website and phone numbers were reported not to be working since Monday, which is presumed to have been the chain’s last trading day. A spokesperson told The Standard the company might resume its operations in future if circumstances change.

    Despite its Japanese name, the snack food chain was established in Hong Kong by Lai Chan Yuk Hing and Lai Hin Tai. The brand opened more than 90 stores in Hong Kong and expanded its business internationally with more than 150 franchised shops, including in the US, the Philippines and Canada. However, most of its international stores have been closed since 2013.

    Aji Ichiban is known among tourists for its wide selection of dried snacks, such as beef jerky, dried apricots, Skittles, chocolates, nonpareils, spicy dried fish, plum tablets, nuts, chilli olives, fried and shredded squid.

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  • Rice export prices continue to drop

    Rice export prices continue to drop

    Average rice export prices fell for a second straight month to US$415-420 a ton, resulting in a marginal year-on-year decline in revenues for Vietnam despite higher volumes.

    The country exported 2.86 million tons for $1.39 billion in the year to date, up 10.3 percent in volume but down 1 percent in value, according to data from the Ministry of Agriculture and Rural Development.

    Global prices have been falling due to abundant supply, with Thai 5 percent broken rice becoming $5 per ton cheaper at $445.

    The Philippines remained Vietnam’s top market, importing 915,000 tons for $422.2 million, up 28.3 percent and 11 percent.

    But domestic prices rose slightly in early June as there was a drop in supply between the winter-spring and summer-autumn crops.

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  • Korean chicken chain Mom’s Touch seeks investors

    Korean chicken chain Mom’s Touch seeks investors

    South Korean chicken chain, Mom’s Touch, is seeking a new owner after voluntarily delisting from the Kosdaq stock market, according to The Korea Herald.

    KL & Partners’ investment arm, Korea F&B Holdings, which is the chain’s largest shareholder, proposed to purchase shares for the next six months in order to protect minority investors.

    As of the first quarter of this year, Mom’s Touch has 1352 stores across its home country. The company’s value is estimated at about US$804 million – nearly three times the amount Korea F&B Holdings invested to acquire the chain in 2019.

    The chain expanded to the US late last year with the ambition to open 100 stores in the country by 2025. On the other hand, Mom’s Touch Singapore, operated by No Signboard Holdings’ wholly-owned subsidiary Hawker QSR, ceased its operations at all outlets last February.

    Meanwhile, its rival, Popeyes, is making a return to South Korea through an exclusive master franchise agreement with Silla Group, after exiting the country in 2020. The chain will open its first store by the end of this year.

  • KitKat unveils world-first packaging in Australia

    KitKat unveils world-first packaging in Australia

    Nestlé Australia has announced that KitKat will be Australia’s “first” chocolate bar with a wrapper using recycled plastic.

    More than 40 million 45g KitKat bars will be packed in the 30% recycled content wrapper in the next year, cutting virgin plastic use by around 250,000sqm.

    Nestlé Oceania General Manager Chris O’Donnell says the company is on a mission to cut its virgin plastics use by a third by 2025.

    “Introducing recycled content in our packaging will make a significant impact against our 2025 ambition. We’ve implemented a number of changes to reduce our use of virgin plastic but this switch, the first of its kind, will be a huge step change.

    “We know consumers want our packaging to use more recycled content, so we’re delighted to deliver the KitKat 45g bar as Australia’s first food product to be wrapped in soft plastic made with recycled content.

    “For KitKat fans, the news is all good. The 30% recycled plastic wrapper will keep KitKat bars crisp, fresh and delicious, while we focus on giving the planet a break. When they’re finished, they can continue to recycle their wrappers through the REDcycle scheme.”

    The wrapper is also Nestlé’s first soft plastic food wrapper globally to use recycled content.

    “Soft plastic with recycled content that’s suitable for food packaging isn’t widely available anywhere in the world – we’ve been searching high and low to find as much of this material as we can from our suppliers. As more becomes available we’re hoping to increase the amount we can source for our packaging,” Mr O’Donnell said.

    “We’re focussed on less packaging, better packaging and better systems. This is a big step in the right direction but we’re not at our end destination yet. This is a journey of ongoing innovation.

    “In the meantime, we’ve committed to invest CHF 2 billion globally to stimulate the market and lead the shift from virgin plastics to food grade recycled plastics.”

    The 30% food grade recycled plastic wrapper is supplied by Huhtamaki. The recycled content has been allocated using the mass balance approach and certified by ISCC.

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  • Starbucks Japan opens new store focused on coffee grounds circularity

    Starbucks Japan opens new store focused on coffee grounds circularity

    Starbucks has announced a first look into a new drive-thru store, opening on 1 June within a bustling rest stop in Togane City, Japan. The store is the second in Japan to be certified under the Greener Stores Framework, aimed at accelerating the transformation of retail towards lower-impact stores that achieve reductions in carbon emissions, water usage and landfill waste.

    The store plays a key role in a community collaboration between Starbucks Japan, Togane City and Sanyu Plant Service Corporation, a local manufacturer, which aims to promote circularity and reduce waste, while making a positive impact for the local community. As part of the collaboration, used coffee grounds from the new store will be recycled into cattle feed, and through Starbucks coffee grounds circularity loop, milk from participating dairies is then used to create handcrafted beverages at around 200 Starbucks stores across the Kanto and Kansai areas, including the new drive-thru. In addition, other food waste from the store will be turned into compost to grow produce directly at the rest stop in Togane City, in cooperation with Chiba Prefectural University of Agriculture.

    Designed inside and out to reflect the area’s proud local industry, the store features local Sambu cedar and Japanese yew trees, the official trees of Togane City. As part of Starbucks’ global efforts to reduce carbon by 50% by 2030, the store is powered by solar panels on the roof and locally-generated renewable energy. The solar system will include batteries that can provide backup power in the event of an outage.

    Connection with the community is also central to the new store’s operation and design. “I believe that even if the actions of each of us are small, each step we take will become a path leading to the future,” says Ayumi, store manager. “Starting with what we can do, we would like to build the future together with the community.”

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  • Chinese hot pot chain Haidilao to launch in the Philippines

    Chinese hot pot chain Haidilao to launch in the Philippines

    Haidilao, the largest hot pot restaurant chain in China, will open its first store in the Philippines next month, the Department of Trade and Industry (DTI) said Friday.

    The DTI said Haidilao International Holding Ltd. would continue to open more restaurants within the year, creating at least 400 jobs. The DTI has yet to divulge further details, such as the number of stores and locations of Haidilao.

    According to the agency, the expansion plans of Haidilao in the Philippines took two years.

    The Philippine Trade and Investment Center in Hong Kong (PTIC-HK) and the restaurant chain owner started discussions on the latter’s plan in the first half of 2020.

    PTIC in Hong Kong and Guangzhou both assisted Haidilao to open its first branch in the country.

    In a virtual meeting with the Board of Investments (BOI) last month, Haidilao executives discussed the details of their operations here.

    “The intention of Haidilao is to present a superior dining experience and offer quality food for Filipinos at a reasonable price. In addition, Haidilao intends to fuse the Filipino taste into its menu and integrate Filipino core values in its service,” the DTI said in a statement.

    Haidilao was founded in 1994 in Sichuan, which is known for its extremely spicy food, particularly hot pot.

    The company now has over 1,000 restaurants in China, Hong Kong, Macau, Singapore, Malaysia, Taiwan, Australia, United States, United Kingdom, Canada, Thailand, Indonesia, South Korea, and Japan among others.

  • Hendrick’s Gin releases new limited-edition Neptunia Gin

    Hendrick’s Gin releases new limited-edition Neptunia Gin

    Internationally celebrated and enjoyed, Hendrick’s Gin’s unique blend of botanicals and exquisite distillation have won them global recognition and a place on the table at most households. Hailing all the way from Scotland, their bright flavour and floral aroma is no stranger to us here as well.

    For fans of this refreshing spirit, today marks an exciting date – fresh out of their artisanal Cabinet of Curiosities is the latest limited release Neptunia Gin.

    Inspired by the beaches of southwest Scotland and the melody they sing as waves hit the shore, the Neptunia Gin is a curious ode to the sea

    Still marked by the distinct rose and cucumber notes of Hendrick’s gin, it presents added depth and flavour with a blend of coastal botanicals that showcase the sensations of being by the open waters, before culminating in a smooth citrus finish.

    Light and refreshing, it’s a perfect thirst-quencher on hot days. Try a Neptunia Fizz – simple mix of Neptunia gin, lime juice, syrup, and soda – with freshly shucked oysters for that full marine experience.

    Owing its magic to the sea, Hendrick’s Neptunia is also working with charity partner Project Seagrass, to raise awareness and funds that go towards saving seagrass meadows and educating the public about the vital role they play in the marine ecosystem.

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  • Starbucks sells its Evolution Fresh juice business

    Starbucks sells its Evolution Fresh juice business

    Starbucks is selling its cold-pressed juice brand, as the company focuses on its coffee-drink business and improving its stores and relations with its cafe workers under interim Chief Executive Howard Schultz.

    Fresh-food maker Bolthouse Farms Inc. said it agreed to acquire Starbucks’s Evolution Fresh line of juices, which currently are sold in Starbucks cafes and supermarkets. Terms of the deal, which Bolthouse said is expected to close later this year, weren’t disclosed. Starbucks said the financial impacts of the deal weren’t expected to be material.

    For Starbucks, the deal comes as Mr. Schultz directs more investment toward the coffee giant’s cafes and baristas. Mr. Schultz, the longtime Starbucks leader who returned in April for his third stint leading the chain, said the company needs to better handle increased demand, improve the cafe experience for customers and baristas, and increase communication between workers and executives.

    Starbucks said it believes Bolthouse Farms has the beverage-industry experience to help Evolution Fresh grow, and shares Starbucks’s priorities for developing the brand and its employees.

    The coffee chain in 2011 paid $30 million to acquire Evolution Fresh, when Mr. Schultz was at Starbucks’s helm for the second time. Mr. Schultz said at the time that the deal would give Starbucks a position in the $1.6 billion premium juice category, and products targeting the health and wellness sector.

    Starbucks opened a handful of Evolution Fresh-branded juice bars, but later wound down that effort after Kevin Johnson was named Starbucks’s CEO in 2017. The company continued selling bottles of Evolution Fresh organic, cold-pressed juices in all of Starbucks’s U.S. stores.

    Mr. Schultz told Starbucks investors earlier this month that since returning, he has pushed the company to focus squarely on improving its core U.S. business. In April he canceled billions of dollars in previously planned stock buybacks, saying Starbucks needed to invest more in its stores, including $200 million in additional compensation and training for workers.

    Starbucks on Monday said it would permanently leave the Russia market, closing 130 stores after the country’s invasion of Ukraine.

    The Evolution Fresh deal will add the brand to California-based Bolthouse’s portfolio of juices, which include vegetable, fruit and protein products. Bolthouse’s current brands represented about one-quarter of the U.S. sales of refrigerated beverages as of last month, according to data from market-research firm IRI.

    “This is what we do. We grow stuff and turn it into juice,” said Bolthouse CEO Jeff Dunn. “They got a great supplier and we got a great brand.”

    Bolthouse said it would keep the juice brand’s nearly 300 employees, who currently are employed directly by Starbucks in California. Over the roughly six-month sales process, Starbucks was focused on how Bolthouse would treat its employees and keep up juice supply to its stores, Mr. Dunn said.

    Evolution Fresh, which is sold at Whole Foods Market and some other retailers in addition to Starbucks, had roughly 2% of the U.S. refrigerated-beverage market as of last month, according to IRI figures. Bolthouse intends to increase marketing of Evolution Fresh and get the products onto the shelves of other retailers, said Mr. Dunn, a former executive at Campbell Soup and Coca-Cola.

    “People have awareness of it, but they don’t see it in a lot of other places other than Starbucks, or maybe Whole Foods,” he said. “We’ll expand the brand and really bring it to a lot more people.”

    Bolthouse Farms, backed by private-equity firm Butterfly Equity, bought back its namesake brands from Campbell in 2019. It has looked to acquire other fresh-food brands since, Mr. Dunn said.

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  • The enormous cost of McDonald’s Russian exit

    The enormous cost of McDonald’s Russian exit

    McDonald’s became the symbol of glasnost in action 30 years ago when it opened its first restaurant in Moscow. But after temporarily shutting down more than 800 restaurants following the invasion of Ukraine, McDonald’s has decided to leave Russia altogether.

    The burger chain will sell its Russia business, saying the “humanitarian crisis caused by the war in Ukraine, and the precipitating unpredictable operating environment, have led McDonald’s to conclude that continued ownership of the business in Russia is no longer tenable, nor is it consistent with McDonald’s values.”
    In March, shortly after the war began, McDonald’s followed other Western companies and temporarily shut down its restaurants in Russia.
    Once the sale is finalized, the Russian restaurants will be “de-Arched,” meaning the locations will no longer be allowed to use the McDonald’s name, logo or menu. McDonald’s said its employees will still be paid until the transaction closes and that “employees have future employment with any potential buyer.”
    CEO Chris Kempczinski said he’s proud of the more than 60,000 workers employed in Russia and said the decision was “extremely difficult.”
    “However, we have a commitment to our global community and must remain steadfast in our values. And our commitment to our values means that we can no longer keep the Arches shining there,” he said.
    The decision brings to a remarkable end McDonald’s three-decade relationship with Russia. McDonald’s opened the doors of its first restaurant in Moscow on January 31, 1990. More than 30,000 were served and the Pushkin Square location had to stay open hours later than planned because of the crowds.
    Its arrival in Moscow was about more than just Big Macs and fries, noted Darra Goldstein, a Russia expert at Williams College. It was the most prominent example of Soviet Union President Mikhail Gorbechev’s attempt to open up his crumbling country to the outside world.
    “There was a really visible crack in the Iron Curtain,” she previously said. “It was very symbolic about the changes that were taking place.” About two years later, the Soviet Union would collapse.
    McDonald’s exit “represents a new isolationism in Russia, which must now look inward for investment and consumer brand development,” said Neil Saunders, managing director of GlobalData said in a note Monday. He added that other Western brands take “principled stance on the concepts of freedom and democracy” and revisit their businesses in Russia.
    McDonald’s will take a significant write-off from exiting Russia — between $1.2 billion to $1.4 billion. Shares were barely changed in early trading.
    “The fact that McDonald’s owns most of its restaurants in Russia means there is an asset rich business to sell,” said Saunders. “However, given the circumstances of the sale, the financial challenges faced by potential Russian buyers, and the fact that McDonald’s will not license its brand name or identity, it is unlikely the sale price will be anywhere near the pre-invasion book value of the business.”
    In its most recent earnings report, McDonald’s said closing its restaurants in Russia had cost it $127 million last quarter. Nearly $27 million came from staff costs, payments for leases and supplies. The other $100 million was from food and other items it will have to dump.
    McDonald’s had 847 restaurants in Russia at the close of last year, according to an investor document. Together with another 108 in Ukraine, they accounted for 9% of the company’s revenue in 2021.
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  • Campos Coffee launches recyclable coffee capsules

    Campos Coffee launches recyclable coffee capsules

    Australian roaster Campos Coffee has announced the launch of its first range of recyclable aluminum coffee capsules. With more people working from home, loyal Campos Coffee drinkers have consistently asked to enjoy the distinctive Campos taste in a capsule format, and now it’s available.

    The new Campos Coffee Capsules range includes the brand’s signature Superior blend, a new blend called King St after the main drag in Sydney’s Newtown, and a Single Origin from Indonesia.

    “Campos is recognized as a symbol of quality and excellence in Australia because we have been sourcing and roasting specialty coffee for 20 years,” says Adam Matheson, Head of Coffee at Campos Coffee.

    “You’d be surprised to learn that there’s a lot more to developing a good coffee capsule than just roasting and grinding high-quality, fresh beans. Capsule design and technology are key to delivering a great coffee experience.

    “Our aluminum capsules are world-class and deliver the aroma and flavor our stunning coffees offer. We wouldn’t have it any other way.”

    Campos Coffee has also partnered with TerraCycle to make it easy and free for everyone to recycle their used Campos Coffee aluminum capsules.

    All three types of Campos Coffee Capsules

  • Heinz to test paper-based ketchup bottle for worldwide launch

    Heinz to test paper-based ketchup bottle for worldwide launch

    Pulpex, a packaging technology company co-founded by Diageo, has quickly grown in prominence with several CPGs working with the upstart. PepsiCo, which debuted a prototype of the world’s first fully recyclable paper bottle last year, and Unilever have committed to using Pulpex’s technology in their packaging as founding partners of a consortium of companies.

    For Kraft Heinz, the new bottle type will help in its broader sustainable packaging ambitions. The manufacturer of Velveeta cheese and Oscar Mayer cold cuts has pledged to make all of its packaging globally recyclable, reusable or compostable by 2025. It also is aiming to achieve net-zero greenhouse gas emissions by 2050.

    A big reason why companies are investing money to improve their packaging is not only to be altruistic but also because consumers are responding through their purchases.

    More than two-thirds of consumers consider it important that the products they buy are in recyclable packaging, according to Trivium Packaging’s 2021 Global Buying Green Report. The report also found 54% take sustainable packaging into consideration when selecting a product.

    It’s a big reason why General Mills’ Nature Valley Crunchy granola bars, for example, moved to fully recyclable plastic wrappers starting last year and PepsiCo’s Frito-Lay division introduced a compostable bag for its Off The Eaten Path brand.

    Coca-Cola has introduced bottles made from 100% recycled plastic material, Mars Wrigley has partnered with Danimer Scientific to create biodegradable wrappers for Skittles and Danone’s Evian bottled water brand has unveiled a new recycled plastic (rPET) prototype bottle using technology from Loop Industries. The Evian bottles will first appear at a commercial scale in South Korea in 2022 before debuting elsewhere in the future.

    In many cases, companies are testing out new sustainable technologies before determining whether to roll them out more broadly — a key step to ironing out any glitches and making production cost-effective. Kraft Heinz said it will test the prototype to assess performance before trying it with consumers and then eventually bringing the bottle to market.

    The fact that easily recognizable brands such as Heinz are embracing paper-based packaging adds significant momentum behind the shift.

    “The scope for paper-based packaging is huge, and when global household names like Heinz embrace this type of innovative technology, it’s good news for everyone — consumers and the planet,” said Pulpex CEO Scott Winston.

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  • Subway plans to open 500 stores in Malaysia with new franchisee

    Subway plans to open 500 stores in Malaysia with new franchisee

    Subway has inked a new master franchise agreement with Pegacorn to open 500 new locations across Peninsular Malaysia over the next 10 years. This triples the number of Subway restaurants in the market and steadily increases the annual restaurant count.

    According to Subway, this partnership is the third of its kind for the brand in Southeast Asia, following recent master franchise agreements in Indonesia and Thailand, and will significantly increase the total future restaurant commitment in the region. Pegacorn has been a partner to Subway in Malaysia since 2019.

    There will be an increase of Subway non-traditional locations across Malaysia, such as airports, hospitals, petrol stations, and convenience stores. New and updated existing restaurants will feature Subway’s modern “Fresh Forward” design and enhance convenience for the consumer with drive-throughts and “Grab & Go” options.

    The agreement with Pegacorn is part of Subway’s multi-year transformation journey to build a better Subway and improve across all aspects of the brand as the business expands its presence globally. Subway plans to double its current network of restaurants in APAC from about 3,300 today to over 6,000 in the next five years.

    Subway CEO John Chidsey said the APAC and SEA markets continue to be a huge opportunity of growth for Subway and an essential part of its international growth strategy. “Pegacorn has proven to be a well-resourced, strategic and successful local operator that has the local insight and experience needed to expand Subway’s presence in Malaysia,” he added.

    Meanwhile, Pegacorn CEO, Kin Siong Kon, said: “We have seen increased demand from guests in Malaysia for Subway’s craveable sandwiches, wraps and salads and are committed to growing the business to make Subway even more accessible to communities across the country.”

    The team in Malaysia introduced a new mascot named Sabweh alongside its Ramadan campaign in March. Sabweh debuted on limited-edition Raya packets and was the brainchild of social media artist Ernest Ng, known for his “Don’t like that la bro” comic series.

    Hang Ee Laine, head of marketing, Subway, Southeast Asia, said previously that the partnership with Ng is a key milestone for the brand in its efforts to bring Subway closer to Malaysians. Meanwhile, its spokesperson also told A+M then that Ng had previously designed the Sabweh character for one of his comics and the character was very popular with Malaysians. Subway felt that the art piece deserved a bigger stage and engaged Ng to create a series of limited-edition Raya-themed versions of Sabweh.

    Across the border, Costa Coffee reentered Singapore through a partnership with Subway after a three-year hiatus. This adds on to Subway’s breakfast options and alignts with its campaign #Talkofthemorning, which aims to encourage Singaporeans to lean into their love of coffee and breakfast as a driver of meaningful connections with one another.

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