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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.

  • India, Vietnam race in rice market

    India, Vietnam race in rice market

    Rice prices gained this week in India as Bangladesh continued to lap up the staple grain from its neighbour, while prospects of deals with the Philippines saw rates climb for the first time in three weeks in a relatively quiet Vietnamese market.

    In Vietnam, benchmark 5 percent broken rice rose to $400 a ton, free-on-board (FOB) Saigon, ending a three-week flat trend within the $390-$395 range, and boosted by prospects of deals with the Philippines, traders said.

    “Prices edged up on market talk that the Philippines would invite tenders to buy 250,000 tonnes at the end of January,” a trader in Ho Chi Minh City said.

    However, trading remained thin due to depleted stocks in the world’s third-largest rice exporter, while Vietnam’s major winter-spring crop would be ready only by the end of February, traders said.

    Vietnam plans to sell close to a 23 percent stake in the country’s main rice exporter Vinafood II through an initial public offering.

    Top exporter India’s 5 percent broken parboiled rice prices rose by about $2 per tonne this week to $423-$427.

    Traders from Bangladesh are aggressively buying new-season crop since prices in Bangladesh are still elevated, said an exporter based in Kakinada in the southern state of Andhra Pradesh.

    India’s rice exports likely jumped 22 percent in 2017 to a record 12.3 million tonnes as Bangladesh ramped up purchases after flooding damaged its crops.

    As of the end of December, farmers in India had cultivated winter-sown rice on 1.88 million hectares, 44 percent higher than a year earlier.

    Prices were also higher in another major Asian exporter, Thailand, with the country’s benchmark 5 percent broken rice gaining to $395-$410, FOB Bangkok, from $393-$396 last week on an appreciating baht and lower supplies.

    The baht has gained 1.6 percent versus the U.S. dollar so far this year and been Asia’s best-performing currency.

    “Rice prices have increased due to a stronger baht, lower supplies due to the effects of floods, as well as a recent 200,000-tonne export deal with Indonesia,” a Bangkok-based rice trader said.

    The Ministry of Commerce forecast Thailand to export 9.5 million tonnes of rice, worth $4.7 billion, in 2018.

    “I think this target is achievable. It’s lower than last year’s record figure of over 11 million tonnes probably due to a stronger Thai baht and bad weather conditions affecting supplies,” said another trader based in Bangkok, adding, “Demand has remained fairly constant.”

    Thai prices are likely to be on an upward trend over the next few weeks, traders said.

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  • Korea’s Caffe Bene sees the end

    Korea’s Caffe Bene sees the end

    Korean coffee chain Caffe Bene has collapsed, filing for a court-led restructuring scheme on Friday.

    Yonhap news service reports the court will soon decide whether to put the ailing coffee chain under its receivership or commence liquidation.

    The legal move follows a protracted slump and mounting losses, the company said. In 2016, the company lost about US$32 million on sales of $73 million, down 32 per cent on the previous year. At that time it operated 800 stores in Korea, a figure it said would shrink as it restructured, and about 50 in the US.

    Launched in 2008, Caffe Bene expanded to become one of South Korea’s largest coffee franchises, opening more than 1000 stores in five years, but lost ground in the saturated coffee market. While its US website claims it has opened 1600 stores worldwide, the exact number still trading is difficult to ascertain. It has opened in Vietnam, the US, China, Canada, Brunei, Singapore, Japan, Indonesia, the Philippines, Saudi Arabia, Malaysia, Cambodia and Mongolia.

    But the international foray has met with mixed success. The Cambodian store has already closed and the last Facebook post by the Singapore cafe is dated February last year. In Vietnam several stores have opened and closed, including its downtown flagship which drew huge queues when it opened in 2014. Three outlets remain trading there, but it is not clear if they are franchised or company-owned.

    The company also appears to have exited the Canadian market.

    While rapid growth in the consumption of brewed coffee drove up the Korean coffee industry’s overall expansion, Caffe Bene was unable to match the growth rate at home.

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  • Jollibee Foods to try Guam after a decade withdrawal

    Jollibee Foods to try Guam after a decade withdrawal

    Filipino fast-food giant Jollibee Foods plans to re-enter Guam this year after pulling out more than a decade ago as the islands went through an economic downturn.

    Jollibee Foods assistant VP/head of international franchising Maxi Peralata Jr says it will open a restaurant in a strategic location in the fourth quarter, near Marine Corps Drive and Route 16/Army Drive in Dededo.

    The outlet will be built within the Micronesia Mall compound, but this has not been confirmed by the mall’s management.

    Peralta says a franchisee has been appointed. He has not disclosed the franchisee’s identity but says their partner has business interests in Guam and the Philippines.

    Jollibee had two franchised restaurants on Guam and two on Saipan, but its Marianas presence ended with the economic downturn. Jollibee also had trouble competing with Guam players offering larger portions.

    Internationally, Jollibee has 139 stores – 72 in Vietnam, 32 in the US, 19 in the Middle East, 13 in Brunei, two in SIngapore and one in Hong Kong.

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  • The Macallan targets Indian travellers at Dubai Airport

    The Macallan targets Indian travellers at Dubai Airport

    A recent Diwali-themed activation held by Edrington Europe, Middle East & Africa Travel Retail in partnership with Dubai Duty Free has resulted in a +107% sales uplift in store for The Macallan.

    The activation is the first phase of Edrington’s strategy to drive single-malt recruitment and premiumisation among Indian travellers – traditionally known as blended whisky drinkers. The Macallan is the first single-malt to actively target Indian passengers at Dubai Duty Free during Diwali, said the company.

    Traditionally known as blended whisky drinkers, Indian travellers represent a huge opportunity for the single-malt market

    The ‘Celebrate Diwali With The Macallan’ campaign placed the single malt on promotional pedestals in the centre of Dubai Duty Free’s Concourse B East and West stores, each with a sales consultant on hand to advise.

    Diwali-2-2-e1515768193699-39e9736e149ea751a9901577d393518a25a9baf9

    The campaign’s visual identity centred on the peacock – a symbolic animal in Hindu mythology also used to represent ‘Natural Colour’ – one of The Macallan’s Six Pillars. Premium gift bags featuring the campaign imagery and slogan were offered to customers making a purchase.

    The concept was tested and adapted through research in key Indian cities – Delhi, Mumbai and Bangalore – and in Dubai. India is the number one destination country from Dubai in terms of passenger volume, with over 1 million travellers in August 2017, and Mumbai the number three destination city.

    “India is a market packed with potential; its rapid economic growth and burgeoning middle classes present a major opportunity for us to not only foster single malt consumption in a traditionally strong blended whisky market, but also to drive premiumisation by leveraging the power of The Macallan brand,” said Edrington Middle East & Africa Travel Retail Commercial Manager Florence Chevallier.

    “This Diwali activation was the first stage in our long-term strategy to ‘win India’ through an insight-driven approach, executed at key airports in close partnership with our retail partners.”

    Dubai Duty Free Senior Vice President-Purchasing Saba Tahir commented: “To have a brand with the prestige of The Macallan spearheading the single malt category’s growth amongst the key Indian demographic is extremely exciting. The premium appeal of this activation, combined with the strong gifting elements clearly resonated with shoppers and delivered exceptional initial sales results.”

  • Say Chiizu stretchy cheese toast opening outlets across Singapore

    Say Chiizu stretchy cheese toast opening outlets across Singapore

    Thailand’s Say Chiizu cheese toast is stretching all the way to Singapore, with takeaway kiosks being set up at four malls next week.

    Its cheese is made on the company’s own farm in Thailand which has cows and machinery imported from Japan, hence its main product being called Hokkaido cheese toast. Its special formula combines three types of cheese to produce its special taste and super-stretchable texture.

    Its Hokkaido milk toast comes in five flavours: charcoal, chocolate, strawberry, matcha and original.

    As well as its toast, Say Chiizu offers snacks such as Pizza Cheese Fries, BBQ Pull Chicken/Pork Cheese Fries, Cheese Fries and Classic Fries.

    Its drinks line-up includes yuzu, matcha, strawberry and peach cheese teas.

    Say Chiizu’s first outlet opens at VivoCity on Monday, followed by 313 @ Somerset on Tuesday, White Sands Shopping Centre on Wednesday and The Clementi Mall on Thursday.

    The brand is aiming to open 10 outlets in SIngapore by the end of the year, including a sit-down cafe at Bugis next month.

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  • Pizza parlor chain plans expansion for 2018

    Pizza parlor chain plans expansion for 2018

    Following a “banner year”, Shakey’s Pizza Asia Ventures (SPAVI) plans to add 20 restaurants to reach a total of 228 outlets by year end.

    In a disclosure to the Philippine Stock Exchange, the family-led company says it opened 24 stores last year, exceeding its target of 20.

    “It has been a banner year for Shakey’s – our maiden year as a publicly listed company – as this is the fastest we’ve grown in terms of store network,” says president Vicente Gregorio. “We are keeping pace with the accelerating growth of our economy.”

    He says Shakey’s aims to open stores in areas outside of first-tier cities. It opened restaurants in provincial locations last year including Iligan, Puerto Princesa, Antique, Gapan, and Palo, Leyte.

    “As Filipinos are now looking for more premium dining experiences, we are driven by our mission to consistently ‘wow’ them. This includes upgrading our look, launching innovative products and emphasising quality service,” says Gregorio.

    Earlier, the company said its plans were to reach a total network of 500 local and overseas restaurants in the next five years, to be funded by internally generated cashflow alongside proceeds from its public offering.

    Established in California in 1954, Shakey’s business in the Philippines is now bigger than in the US. In fact, the Philippine market is the brand’s largest market. The Philippine company is independent after acquiring the brand’s trademark and intellectual property rights, and also owns perpetual rights for the brand for the Middle East, Asia (excluding Japan and Malaysia), China, India, Australia and New Zealand.

    The company’s recurring net income for the first nine months of last year grew by 15 per cent year-on-year to PHP519 million (US$10.3 million) on higher sales. System-wide sales rose by 15 per cent to PHP6 billion, driven by same-store sales growth of 6 per cent and the increase in store numbers.

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  • Red Wok invests in Quan Ut Ut chains

    Red Wok invests in Quan Ut Ut chains

    Vietnam’s F&B group Red Wok has invested in Quan Ut Ut Barbecue, which owns the American-style restaurant of the same name as well as craft-beer brand BiaCraft.

    Red Wok will support Quan Ut Ut with business services, technology and marketing management with the aim of helping it to expand. The level of investment has not been disclosed.

    Backed by Mekong Capital, Red Wok plans to invest in small-scale dining chains, with fewer than 10 restaurants, over the next three years. It so far has interests in Wrap & Roll, Cuon Viet and Lau Bo Sai Gon Vivu, which has 25 locations nationwide and six franchised outlets in Singapore and Shanghai.

    Founded in 2014, Quan Ut Ut Barbecue has four branches in Ho Chi Minh City.

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  • Robomart brings food to buyer door

    Robomart brings food to buyer door

    California-based startup Robomart has introduced the world’s first self-driving store to deliver fresh produce to the customer’s doorstep.

    Making its premiere at CES (Consumer Electronics Show) in Las Vegas this week, the Robomart vehicles are completely autonomous and fully electric, recharging wirelessly.

    Fresh produce makes up about 60 per cent of all groceries sold, but Kantar Worldpanel says less than 5 per cent of perishables sales have moved online. This is because picking and delivering groceries is prohibitively expensive for retailers, while consumers do not trust someone else picking produce for them.

    This prompted the Robomart concept, and the company is building a fleet of the on-demand self-driving stores to license to retailers.

    For consumers, all they need do is tap a button on an app to request the nearest Robomart. When it arrives, they unlock the doors via the app then chose their products. When they are finished, they just close the doors and send the vehicle on its way.

    Robomart tracks what customers have taken using patent-pending “grab and go” checkout-free technology, and will charge them and send a receipt.

    Robomart says it did extensive research. In a survey of US women between 26 and 44 years of age it found that more than 85 per cent of them do not shop for fruits and vegetables online because they find home delivery too expensive and prefer to pick their own produce.

    Almost 65 per cent said they would order a Robomart more than once a week.

    Environmentally friendly

    Robomart’s vehicles do not need a driver, are environmentally friendly and access wireless EV charging using NVIDIA Corporation technology. The startup is in the process of obtaining an Autonomous Vehicle Testing Permit from the Department of Motor Vehicles in California.

    It has built its first prototype and has started work on a fleet which it aims to deploy for commercial pilot services soon.

    “Retailers can sponsor these pilots and test our autonomous store proposition with their customers in the San Francisco Bay Area,” says the company.

    Benefits for grocery retailers include consumer data giving detailed insight into sales and consumption patterns. On-demand delivery is more than five times cheaper, and retailers can expand their store footprint at low cost with no initial capital expenditure.

    Also, the direct-to-consumer channel means retailers retain ownership and control of their customers, says Robomart.

    “Retailers would have access to our state-of-the-art autonomous fleet-management system that manages orders, routing, restocking and teleoperations.

    “Although this system will be automated, they would be able to communicate with customers, store staff and law enforcement if necessary, and access real-time sales data and analytics.”

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  • SM acquisition of Goldilocks OKd

    SM acquisition of Goldilocks OKd

    SM Retail has received approval from the Philippines antitrust body to acquire the Goldilocks Bakeshop chain.

    This follows the two parties submitting commitments to address potential competition issues in the deal, says the Philippine Competition Commission (PCC).

    SM Retail is a subsidiary of SM Investment (SMIC), which through another subsidiary, SM Prime Holdings (SMPHI), runs nearly 70 SM Malls in the Philippines. On the other hand, Goldilocks has a network of more than 500 stores, some of them in SM Malls.

    Potential concerns included the possibility that retail space in SM Malls might be limited for Goldilocks’ competitors. There were also concerns SM Retail might gain access to sales information from competitors and share it with Goldilocks.

    PCC chairman Arsenio Balisacan says mall owners should not be allowed to discriminate when it comes to tenants and lease applicants, “especially those that compete with stores owned by the mall itself”.

    After the acquisition, Goldilocks will become a subsidiary of SM Retail.

    In its voluntary commitment, which the PCC approved in December, SMPHI undertook to give Goldilocks’ competitors “a fair share in their lease at all times”.

    SMPHI also committed to data protection: not to allow Goldilocks access to competing tenants’ information, including sales data captured by the POS system of SMPHI tenants.

    “The commission appreciates SM’s move to make these voluntary undertakings – proof that PCC and the business community can work together to promote a culture of competition,” says Balisacan.

    The SM Group is also legally bound to comply with its commitment and submit reports to the PCC. The parties will be monitored periodically by a team of PCC experts over a five-year period. This will include random inspections, says the commission.

    SM Group negotiations to acquire a controlling stake in Goldilocks Bakeshop were revealed in August.i

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  • Starbucks Debuts Largest Store in South Korea

    Starbucks Debuts Largest Store in South Korea

    Starbucks Coffee Korea Co., a 50/50 joint venture between Starbucks Coffee International, Inc. and Shinsegae Group, celebrated the opening of Korea’s largest Starbucks store in Central Seoul near Jonggak Station in December 2017. Located in Jongro Tower, with more than 900 residents, the store sits between two of the Tower’s floors covering over 1,000 square meters (11,000 square feet). Jonggak Station serves as a gathering place for all generations of Koreans to shop, dine, work and play in a location where history and tradition of Korean culture merge with modern city amenities.

    The Jongro store features a “Grand Bar,” a triangular bar on the second floor measuring 25 meters (82 feet), making it the largest stand-alone bar at any Starbucks across South Korea, and puts both coffee forward and Teavana handcrafted beverages at centerstage.

    Beyond the Grand Bar, the space also offers a space known as the Coffee Stage, for a more personalized and intimate coffee experience with Starbucks baristas. In addition, specially-designed seating zones, inspired by the six commonly traded goods among Koreans during the Chosun Dynasty, provide comfortable seating for large groups, close friends and individuals to enjoy a cup of coffee in this unique atmosphere.

    “The Jongro store represents the 19-year coffee journey we’ve been on with Korean customers,” said S.K. Lee, CEO, Starbucks Coffee Korea. “We are pleased to create a place which pays respect to our Korean heritage while elevating the coffee retail experience customers have come to expect of Starbucks.”

    The beverage menu at the Jongro store includes nearly 100 handcrafted customized beverages. The Teavana Blueberry Bliss and Teavana Lavender Sage beverages are uniquely brewed on a Siphon to extract the full tea flavors and aromas. These teas, as well as the Starbucks Reserve Origin Flight and Reserve Brew Comparison tasting experiences, can only be found at the Jongro store.

    In addition, more than 60 locally-sourced food items are available, including seven various rice dishes such as a Cactus rice ball with beans and sweet potato, as well as light meals and snacks, and can be found only at this location.

    “We are committed to innovating the Starbucks Experience to meet the expectations and needs of our customers and are proud to bring our Korean customers closer to our coffee and partners (employees) than ever before,” said Mark Ring, president of Starbucks Asia Pacific.

    Since opening in 1999, Starbucks today has more than 1,140 stores across 75 cities in South Korea. Employing over 13,000 partners (employees), Starbucks Korea is a leading Employer of Choice in the country and is also a model of corporate citizenship with an robust social impact agenda, partnering with over 140 communities and nonprofits to serve its partners and the community.

  • 7-Eleven in talks with a ‘few parties’ on food deal

    7-Eleven in talks with a ‘few parties’ on food deal

    7-Eleven Malaysia Holdings Bhd is in talks with a few parties on food chain supply after its memorandum of undestanding (MoU) with Brahim’s Holdings Bhd’s subsidiary lapsed after close to two years.

    Last week, 7-Eleven said in a stock exchange filing that the MoU with Brahim’s “has lapsed and accordingly ceased to have any effect”.

    “We’re looking to work with many others. We’re talking to some (a few parties), but it’s not finalised yet,” 7-Eleven Malaysia majority shareholder and Berjaya Corp founder and executive chairman Tan Sri Vincent Tan told a press conference after launching mobile wallet app One2pay today.

    He added that once the company has finalised the decision, it will make an announcement, estimated in the next two to three months.

    Meanwhile, Tan said the group is projecting a 3%-5% increase in sales for the retail businesses under Berjaya Group, on the back of the appreciation of the ringgit and positive signs such as the growing economy and foreign investments in the country.

    He said while retail associations and retailers have lamented the soft retail market, partly due to competition from e-commerce, the situation has been better because the ringgit has strengthened, which augurs well for the retail industry.

    “The retail trade in Malaysia is still okay and is not as bad as painted by some. For our group, we’re optimistic that the retail trade will get better,” said Tan.

    He added that the group witnessed a dip in sales when the Goods and Services Tax (GST) was implemented but now it has stabilised and sales are going up.

    “People have accepted GST. Consumers are back and the sales are up.”

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  • Café that Shuns Cash and Welcomes Bitcoin Opens in Singapore

    Café that Shuns Cash and Welcomes Bitcoin Opens in Singapore

    Cash is not accepted for coffee at Singapore’s Ducatus Cafe, which has officially opened at Oxley Tower on Robinson Road.

    Owned by cryptocurrency mining company Ducatus Global, the cafe does not take cash, depending on credit cards and, of course, cryptocurrencies – available through a special ATM in the store.

    However, in its latest Facebook posting, the cafe says its cryptocurrency ATM is temporarily out of service.
    Bitcoin is accepted as well as its own Ducatus coin, available via the Ducatus App which can be found in the Google Play Store. CEO Ronny Tome says there are plans to accept other cryptocurrencies soon.

    “The idea of developing the cafe was because we wanted to make sure people can use our Ducatus coins as well as bitcoins and other cryptocurrencies in day-to-day business.

    “Right now, cryptocurrencies are mostly used for speculation on markets…We want to make it part of our daily life,” he says.

    Also launched this month, the Ducatus coin is worth about 10 cents.

    The in-store cryptocurrency ATM is to enable customers to make cash-to-bitcoin deposits while waiting for their order. As well as coffee and snacks, the cafe sells branded gifts.

    Tome says he will open more cafes in Singapore. His initial cafe opened in Seminyak, Bali, on December 12, and he has plans to roll out the cafes in other countries as well as team up with hotels and travel agencies.

    Meanwhile, Tome is confident the virtual money industry will help national economies grow faster. He says governments should give cryptocurrency the chance to further grow.

    “Cryptocurrency and the underlying technology of blockchain will change the world. I’m 100 per cent sure of that – it’s here to stay.

    “I see only upsides, and it just requires all of us, all players, the government as well as businesses, to work together and find the best way of making use of this new amazing technology.”

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  • Tartine Bakery to Open in Seoul in 2018

    Tartine Bakery to Open in Seoul in 2018

    Award-winning Tartine Bakery is expanding from San Francisco and will open its first overseas branch in Seoul’s Hannam Dong area on February 9.

    There are plans to also open about four more Tartine Korea outlets over the next 12 to 18 months.

    Heading the Korean branch will be pastry chef Lee Hyun Hee and chef Edward Lee, co-founder of Baroque Bakery and Pizzeria d’Buzza in Seoul. The two Korean chefs have spent six months in San Francisco learning the bakery’s recipes, says Food And Wine magazine.

    Tartine founder Chad Robertson, who has studied Korean martial art taekwondo, describes Korea’s food culture as “really amazing” with its take on Western food.

    Tartine’s San Francisco shop attracts queues for its morning buns, a croissant dough rolled into a bun form and dusted with sugar, orange zest and cinnamon, as well as its buttermilk scones studded with currants, and fresh loaves ranging from baguettes to offerings made with buckwheat and quinoa.

    Meanwhile, the bakery has just opened a 464sqm bread factory in San Francisco that combines a pastry shop, restaurant, ice-cream parlour and coffee shop in a warehouse space. The company plans to replicate this concept in a 3716sqm space in downtown Los Angeles, which will also include a coffee lab and roastery as well as a trattoria and pizzeria.

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  • Mydin puts Sam’s Groceria stores up for sale

    Mydin puts Sam’s Groceria stores up for sale

    Malaysian grocery chain Sam’s Groceria is being sold by owner Mydin Mohamed Holdings as it divests loss-making businesses.

    Mydin values the high-end grocery business at US$12.5 million (MYR50 million). The chain has four outlets: in Gurney Paragon Mall and Straits Quay on Penang island, Sunway Carnival Mall in Seberang Perai, and Nu Sentral in Kuala Lumpur.

    Managing director Datuk Ameer Ali Mydin says the decision to sell followed the realisation that the stores’ patrons were mainly local Chinese and expatriates. “We do not sell liquor, wine, beer or pork, so we have been unable to meet our customers’ needs.”

    Sam’s Groceria, which started in 2013, stocks 60 per cent imported grocery products and fresh food.

    Last year, Mydin disposed of another loss-making unit, MyMydin Convenience, and discontinued its Kedai Rakyat 1Malaysia (KR1M) stores.

    For the year ended March 31, 2016, the group posted its first loss, of MYR156.6 million, in 60 years. With an internal re-organisation and cost cutting, the group managed to post a small profit last financial year.

  • The Golden Gaytime skips Indonesia market

    The Golden Gaytime skips Indonesia market

    Under social-media fire in Indonesia over its Golden Gaytime ice-cream brand, Unilever has issued a statement to say the brand is not even sold in the country.

    Protesters say the name and design promote LGBT rights, a big issue in Indonesia. The outrage follows social-media posts featuring a Rainbow Gaytime ice-cream bar that is not an official product but a tribute concept created by an Australian fan for Sydney’s Mardi Gras festival. The posts went viral, followed by ugly comments and calls to boycott Unilever subsidiary Wall’s.

    Unilever Indonesia clarified that the ice cream was not a product of Wall’s Indonesia. It said it has been in Indonesia for 84 years and respected and upheld the cultural and religious values and norms of the country. It also said Wall’s brand was halal certified in Indonesia, and had won an award for its efforts in this area.

    Golden Gaytime first released in Australia in 1959, keeping its name despite the change in connotation of the word “gay”. In recent years, as with the rainbow edition, it has embraced the modern use of the word.

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