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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.

  • Booths grocery products head to Malaysia

    Booths grocery products head to Malaysia

    Rather than head south in its home market, the upmarket northern England Booths grocery chain has opted instead for a JV in Malaysia.

    The family-owned retailer, which launched in Blackpool in 1847, has partnered with Hong Kong-listed retailer Dairy Farm, owned by Jardine Matheson, to sell 40 of its best-selling products, including chutneys, jams and puddings, in 19 shops across Malaysia.

    Chairman Edwin Booth, part of the fifth generation of the family to be involved in the firm, says Booths’ heritage gives people “a great deal of reassurance”.

    Booths has 34 stores across England’s north, mainly medium-sized supermarkets. Each store has its own identity, reflecting its location. Its JV in Malaysia is its first overseas foray.

    Staff members are given extensive product training to help them deliver a “friendly and informed” shopping experience, says the company.

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  • Chinese supermarkets pull Brazil meat from shelves as food safety fears grow

    Chinese supermarkets pull Brazil meat from shelves as food safety fears grow

    Some of China’s largest food suppliers have pulled Brazilian beef and poultry from their shelves in the first concrete sign that a deepening scandal over Brazil’s meat processing industry is hitting business in its top export market.

    The moves by Sun Art Retail Group, China’s biggest hypermarket chain, and the Chinese arms of global retail giants Wal-Mart Stores and Metro AG come days after China temporarily suspended Brazilian meat imports. Safety fears over Brazilian meat have grown since police accused inspectors in the world’s biggest exporter of beef and poultry of taking bribes to allow sales of rotten and salmonella-tainted meats.

    A spokeswoman for Sun Art Retail, which operates 400 Chinese hypermarkets, said on Wednesday the chain had removed beef supplied by top Brazilian exporters BRF SA and JBS SA from its shelves from Monday. Brazilian beef accounts for less than 10% of Sun Art’s beef supply, she said. Wal-Mart has also removed Brazilian meat products from its stores, a person familiar with the matter said. He declined to be quoted because of the sensitivity of the matter.

    Germany’s Metro has withdrawn Brazilian chicken legs and wings from its Chinese stores, said a manager, who declined to be named as he was not allowed to speak to media. The retailer, with 84 stores in China, does not sell Brazilian beef. JD.com, one of China’s biggest online retailers, said in an emailed statement it had also removed all listings for imported Brazilian meat and is reviewing orders in process.

    While Brazilian officials sought late on Tuesday to reassure consumers that the investigation had revealed only isolated incidents of sanitary problems, the reaction by Chinese retailers suggests that the probe could have far-reaching repercussions for the world’s top meat exporter. Chinese consumers appeared largely unconcerned or unaware of the scandal in Brazil, with few people commenting on the issue on the country’s vibrant social media networks.

    But the country has been hit by its own safety scandals in the past, making retailers sensitive to any potential risks.

    “We removed the product already on March 20,” said Sun Art’s spokeswoman, noting it was ahead of the Chinese government’s first official comment on the issue. Brazil is the top supplier of beef to China, accounting for about 31 percent of its imports in the first half of 2016. Much of it is used in canteens and foodservice and branded Brazilian beef is less prominent in supermarkets than Australian beef.

    Importers are expected to wait a few more days before seeking out alternative supplies, which will likely be more costly than Brazil’s. “It’s a 45-day lead-time to get any product here. What if they lift the ban by the end of the week?” said an industry source who declined to be identified. Hong Kong, the second-biggest buyer of Brazilian meat in 2016, has also issued a ban on imports, following similar steps by Japan, Canada, Mexico and Switzerland.

    Major Hong Kong supermarket chain PARKnSHOP said it had removed Brazilian pork, beef and chicken from shelves. “To cater for the needs of customers, we will increase the supply of meat and poultry products from other countries,” it said in a statement, without elaborating.

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  • Vietnam confectionery booming

    Vietnam confectionery booming

    Market observers see a positive outlook in the long term for Vietnamese confectionery exports.

    Their optimism is based on a steady double-digit growth in export value for several years and an upward tick in investment and production expansion by local firms.

    According to the Business Monitor International (BMI), the nation’s confectionery sector has experienced a relatively high and stable growth rate and it is forecast to earn revenues of VNĐ40 trillion (US$1.8 billion) in 2018.

    China, the United States and Cambodia were the top three importers of Vietnamese confectionery last year, followed by Japan and South Korea. China is set to maintain its leading position this year, with import growth estimated at over 40 per cent.

    Confectionery exports went up 15 per cent year-on-year in 2016 with an export value of $532 million, the Ministry of Industry and Trade (MoIT) estimates. The export value in 2015 was $463 million.

    The growth in exports and better prospects seen have spurred investment in the industry, the MoIT has said.

    To promote co-operation between Vietnamese enterprises and experienced international confectioners, the German Bakers’ Confederation and the organising committee of the international trade fair for bakery, confectionery and snacks (IBA 2018) are treating Vietnamese enterprises as significant partners, according to the Đầu Tư (Investment) newspaper.

    The IBA has been a rendezvous for experts in the bakery, pastries, and snack industries since 1949. It is a platform for innovation and provides a complete overview of all novelties in the market. IBA 2018 will take place from September 15-20 in Munich, Germany.

    Nguyễn Trung Chính, representative of the GHM Company in Việt Nam, an affiliate of Munich-based GHM Gesellschaft für Handwerksmessen mbH, said Vietnamese confectionery products are capturing the attention of foreign investors.

    “In early April, GHM General Director Diether Dohr will come to Việt Nam to meet with local confectionery companies, and introduce them to German manufacturers and importers,” Chính said.

    Foreign rivals

    With improved quality, modern packaging and a more diverse range of products, the Vietnamese confectionery industry is developing strongly, especially in the premium segment.

    Statistics compiled by the MoIT show that imported confectionery now accounts for 30 per cent of the market share. In 2016, Việt Nam’s confectionery imports reached over $250 million, up 20 per cent year-on-year.

    A representative of the Phú Hưng Securities Corporation told Đầu Tư that the confectionery industry is not just looking at huge export potential, but also a surge in import earnings.

    “With a large and young population, Việt Nam’s average confectionery consumption is currently about 2 kilogrammes per person per year (lower than the world average of 3 kilogrammes per person per year). Confectionery consumption among the 65 per cent of the population that live in rural areas, which means that that there are plenty of market opportunities for both confectionery makers and traders, ” he said.

    Confectioners like Bibica Corporation, which has popular brands like Hura, Choco Bella, Orienko, Zoo, are trying to maintain and strengthen their market position.

    Besides building a new plant in Hưng Yên province, Bibica is preparing to operate its $12 million cupcake production line.

    The company has also implemented a $3.3 million project to produce the Hifat soft candy and has another project worth over $670,000 to produce round cakes.

    The Hải Hà Confectionery Joint Stock Company, another well-known firm, is building a new factory with a daily capacity of about 62 tonnes a day in Bắc Ninh Province.

    Vũ Quốc Tuấn, deputy manager of external relations and internal communications department with confectioner Mondelez Kinh Đô Việt Nam, said that imported candy has triggered fierce competition in the country’s confectionery market.

    He said: “This is the necessary motivation for local manufacturers to invest more in new production technology, improve product variety and enhance product quality, serving the diverse demands of demand of domestic and international consumers.”

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  • Noodle firm earnings plunge

    Noodle firm earnings plunge

    Colusa-Miliket Foodstuff Joint Stock Company’s (Miliket) audited financial report for 2016 showed a 40 per cent drop in pre-tax earnings compared with the previous year, indicating a loss of market share.

    The report showed revenue of VNĐ461 billion (US$20.7 million) and pre-tax earnings of VNĐ25 billion ($1.12 million), declining by 3.5 per cent and 39 per cent, respectively, from 2015, and currently the lowest since 2012.

    The noodle company’s market share reduced to only 2-4 per cent in total.

    In 2016, despite the company’s effort to introduce a new line of products with better packaging and another line with flavour diversity, it failed to attract customers and accumulated 15 per cent more inactive stock compared with 2015.

    The stock of VNĐ23.3 billion ($1.04 million) caused the company’s liabilities to increase from VNĐ61.1 billion ($2.74 million) to VNĐ72.8 billion ($3.27 million).

    In total, Miliket’s total capital in 2016 was VNĐ196 billion ($8.8 million), with cash flow of VNĐ122.3 billion ($5.5 million).

    According to financial experts, the company will soon be depleted of cash if it fails to increase quantity consumed.

    At present, Miliket’s instant noodles is in the lowest price bracket on the market, at VNĐ3,000 ($0.13) per package. This allows the company to focus on low income customers and cheap restaurant chains, both market segments neglected by larger companies.

    Miliket is one among several large noodle producers on the scene in Việt Nam today facing challenges. Other brands such as Acecook, Masan and Asia Food are also facing problems generating revenue.

    Although Acecook holds nearly 50 per cent of domestic market share, it experienced continuous drop in earnings between 2013 and 2015, whereas Masan’s 2016 revenue dropped by 20 per cent from the previous year.

    According to the World Instant Noodles Association, the amount of instant noodles consumed annually in Việt Nam has gradually declined since 2013, from 5.2 billion packages to 4.8 billion in 2015. The country has the fourth largest quantity of instant noodles consumed per annum.
    Read more at https://vietnamnews.vn/economy/373605/noodle-firm-earnings-plunge.html#ZMULl4oFsddSQVRI.99

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  • Thai street-food apps help tourists

    Thai street-food apps help tourists

    Three Thai street-food apps have been launched offering tourists details of the nation’s top roadside eateries.

    Street Food Bangkok, Street Food Chiang Mai-Chiang Rai and Street Food Phuket have been launched simultaneously to promote Thai food to foreign visitors as well as enhance Thailand’s tourism image. It is a venture of the Ministry of Foreign Affairs in co-operation with the Thailand Foundation, an independent agency founded in 2007 to promote better understanding of Thailand.

    The Thai street-food apps, both Android and iOS, are free for foreign visitors to download and all information is available in English or Chinese.

    The Bangkok Street Food App includes information on street food from 120 shops and stalls, covering 25 types of dishes.

    Street Food can be searched by dish or by location, and users can save favourite stalls to a quick-access menu. The descriptions usually include information on the restaurant’s history and owners, as well as their particular take on their speciality dish.

    The apps link with Google Maps to help users find their preferred outlet. The name and directions to each restaurant are given also in Thai script so visitors can show it to their taxi driver.

    The database may be expanded in the future under the second phase of the program.

  • Vietnam tables Brazilian meat imports

    Vietnam tables Brazilian meat imports

    Vietnam is considering whether to ban imports of livestock and poultry products from Brazil as the Latin American country investigates the quality of its meat exports.

    The animal health department said on Wednesday meat imports from Brazil have been low so far this year, but it has asked the agriculture ministry to halt imports if any low-quality products are found.

    Following a two-year investigation, Brazil’s federal police last week accused more than 100 people, mostly health inspectors, of taking bribes and allowing the sale of rancid products, falsifying export documents and failing to inspect meat packing plants, as reported. Brazil is the world’s top producer of beef and poultry.

    BRF and JBS, the world’s biggest meat producers, are among dozens of firms targeted in the police investigation into what would be the biggest scandal to hit Brazil’s agricultural sector. Both companies have denied any wrongdoing.

    The trade office at the Vietnamese Embassy in Brazil has called on agencies in Vietnam to tighten inspections of livestock and poultry products from Brazil.

    Hong Kong, Japan, Canada, Mexico and Switzerland all announced partial or all-out bans on Brazilian meat imports on Tuesday, following steps taken a day earlier by China, the European Union, South Korea and Chile, Reuters reported.

    But South Korea said on Tuesday it will lift the ban on poultry imports from BRF, the world’s largest exporter of the meat.

    Vietnam has imported around 3,000 tons of meat and meat products from Brazil so far this year, the animal health department said.

    “The amount is very small compared to the 6 million tons that Brazil exports every year to countries around the world,” said an official from the department.

    Brazil, recognized by the World Organization for Animal Health for doing a good job in controlling animal diseases, exports livestock and poultry products to 150 markets around the world.

    Last year, it took the lead in beef and chicken exports with outbound sales of the two products hitting 1.8 million tons and 4 million tons, respectively. Its major buyers are the E.U., Russia, Japan, China and Singapore.

    Two-way trade between Vietnam and Brazil stood at $2.29 billion in the first nine months of last year, down 15.7 percent against the same period in 2015, with Vietnam’s imports totaling $1.35 billion, Vietnam Customs data showed.

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  • Jumbo Group China to open Beijing restaurant

    Jumbo Group China to open Beijing restaurant

    Singapore-owned seafood restaurant Jumbo Group China has signed a JV agreement to open its first outlet in Beijing.

    The agreement is between the Singapore group’s indirect wholly owned subsidiary Jumbo F&B Services (Shanghai) and Beijing Hualian (SKP) Departmental Store, a member of the Beijing Hualian Group. JFB Shanghai will hold a 51 per cent stake in the JV, while Beijing Hualian holds the 49 per cent balance.

    The JV will have a registered capital of RMB10 million (US$1.4 million).

    Slated to open by the third quarter of this year, the Beijing restaurant joins the group’s three outlets in Shanghai.
    Jumbo CEO/executive director Ang Kiam Meng says the JV agreement comes shortly after the group inked a franchise agreement in Vietnam. “We are heartened our overseas expansion plans are shaping up well.”

    For the Chinese capital, the Jumbo Seafood restaurant will be in the upmarket Beijing SKP mall.

    “The restaurant’s privileged location enables us to reach out to the more affluent segment of the market, which is cosmopolitan in outlook and more adventurous in their culinary pursuits,” says Ang.

    In December, Jumbo signed a franchise agreement with Nova Bac Nam 79 joint-stock company to grant rights to run Jumbo Seafood restaurants in Ho Chi Minh City and Danang, Vietnam. There are plans to open three Jumbo Seafood outlets in the two cities over the next two years.

    Jumbo Group has a central kitchen in Singapore to maintain quality standards and consistency as well as increase productivity and lower costs. It also has a research and development kitchen where it creates new dishes and improves food-preparation processes.

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  • Barry Callebaut Expands Cocoa Nurseries Program in Indonesia

    Barry Callebaut Expands Cocoa Nurseries Program in Indonesia

    One of Barry Callebaut’s primary goals in Forever Chocolate is to lift more than 500,000 farmers out of poverty. To get there, we can improve farm productivity and increase the yield of high-quality cocoa. Doing this will enable farmers to sell their cocoa at higher prices and gain access to a better quality of life.

    But how can farmers grow more high-quality cocoa on the same amount of land? With better trees. Barry Callebaut aims to deliver 500,000 seedlings from its cocoa nurseries to farmers in Indonesia in 2017 and is in the midst of trialing a range of interventions to produce the best trees.

    Richard Fahey, Barry Callebaut’s Vice President for Cocoa in Asia says: “Indonesia has been struggling to increase cocoa production because of ageing cocoa trees. Most of them were planted in the 1980s, are vulnerable to diseases and are well past their peak production years. Cocoa trees are strong, and will produce pods for a long time. However, the high-productive years of a cocoa tree are finite, and usually after 25 years, the trees are less productive. Indonesia desperately needs new trees in order to get back to a productivity level of around 1 mt of beans per hectare.”

    “Most Indonesian farmers are willing to invest in their farms, and they understand that new trees will be more productive.  But they simply have not had access to good planting materials and therefore prefer to stick with their old trees rather than risk planting new trees that may or may not be effective. High-quality nurseries are therefore are essential to provide the supply of seedlings the farmers need and give them the confidence that the seedlings they purchase will turn into high-yielding, disease resistant trees,” he notes.

    Indonesia-based Sustainability Manager Ani Setiyoningrum says: “The purpose of cocoa nurseries is to provide a conducive environment in which young cocoa plants can grow a good number of leaves and fully develop its root system to a certain stage that will give cocoa plants a better chance of survival at the cocoa farm. These nurseries will require shade, water and protection from wind, and whenever necessary, protection from stray animals.”

    But there are already cocoa nurseries in Indonesia, but as Fahey notes, plantations in Indonesia typically have 400-600 cocoa trees growing per hectare. “Let’s do the math. If we are to estimate that there is 500,000 hectare of cocoa farms in Indonesia, we are basically looking at replacing at least 200 million trees. This nationwide replanting initiative is massive and would take a lot of effort not just from Barry Callebaut but across various organizations.”

    Setiyoningrum says: “These are community-run nurseries that we help to kick-start by providing them with a start-up investment and best-practice models. These nurseries are also a form of income for these nurseries owners, some of whom are cocoa farmers themselves. Our field experts work closely with these nurseries owners to teach them to produce high quality seedlings with a high survival rate. They are given proper planting material, high-quality seeds, and the right potting mix, and are guided to develop good nursery management skills and standard operating procedures. These nursery owners then work as a professional service provider for other farmers which is becoming an avenue for additional income. The project model we are testing with around 50 nurseries across Sulawesi is suitable for nurseries producing at a large scale. Our intention is that the nurseries we start-up will eventually become totally self-sufficient businesses in their own right.”

    Also in Indonesia, the company is piloting a new way of setting-up these nurseries and distributing these seedlings to the farmers. “The challenge is how we can escalate the seedling propagation program while also try to reduce the production cost of each seedling. We have learned a lot from our colleagues in Brazil and we are borrowing some of their best practices, including using elevated tables and space efficient planting tubes. While setting up these improved nurseries and distribution networks, we continue to support farmers to establish nurseries in their own communities because it helps to increase the overall supply of new trees,” Fahey concludes.

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  • Harvest rain takes the flavor out of Vietnamese coffee crop

    Harvest rain takes the flavor out of Vietnamese coffee crop

    Heavy rain that hit swamped Vietnam’s 2016/2017 coffee harvest has raised the ratio of low-quality beans and defects, traders said on Wednesday, with one major exporter saying quality is at its worst in nine years.

    Unseasonal rain that fell from October-December last year in Vietnam’s Central Highlands coffee belt delayed the 2016/2017 crop harvest, resulting in more black and broken beans. The rainy season normally ends in early October.

    The harvest was completed in January as usual, but a higher ratio of black and broken beans – counted as defects in export standards – has emerged.

    These defects, coupled with India’s ban on Vietnamese coffee imports from March 7, have made it more difficult for the world’s top robusta exporter to find buyers for the low-quality commodity this year.

    “The ratio of defects this year has risen by 50 percent from 2016,” said Le Duc Huy, deputy general director of Simexco, a major export firm based in the Central Highlands province of Dak Lak. “The quality is the worst since 2008.”

    Downpours cut Vietnam’s 2007/2008 coffee output by 15 percent to 1.08 million tons.

    Traders say India often buys Vietnam’s low-quality robusta grade 3, with 25 percent black and broken beans and 3 percent foreign matter, to produce instant coffee. Vietnam’s benchmark coffee for export is robusta grade 2 (5 percent black and broken), which is priced at a premium of $120-$180 a ton compared to the grade 3 beans.

    The harvest usually starts in late October and ends in January. Rain during the blossoming period reduces yields, while the wet weather disrupts the outdoor drying process, necessitating the use of electric dryers that turn the beans black and worsen the taste. The exportable volume is therefore lowered.

    Two traders at foreign firms in Ho Chi Minh City, Vietnam’s largest coffee trading market, estimated that low-quality beans made up 10-20 percent of the country’s output this year, which is projected to ease 8 percent from last year to 26.7 million bags, or 1.6 million tons, the U.S. Department of Agriculture has said.

    Vietnamese trade experts say India’s ban is a tit-for-tat action after Hanoi announced it was going to suspend the import of five Indian commodities from late April to prevent peanut beetle from spreading.

    Officials at the Indian Embassy in Hanoi did not immediately comment on the matter.

    The impact of the ban on Vietnam’s overall coffee exports is minimal, Vietnam Coffee and Cocoa Association Chairman Luong Van Tu said.

    India imported 6,900 tons of Vietnamese coffee from January-February this year, down 17 percent from the same period in 2016, based on Vietnam Customs data.

    Last year it spent $79.4 million to import 46,000 tons of coffee from Vietnam, a tiny fraction of the Southeast Asian nation’s total shipments of 1.78 million tons.

    India has the world’s third fastest growing retail coffee market behind Indonesia and Turkey, global market intelligence agency Mintel said in its latest report earlier this month.

    Robusta with high ratios of black and broken beans has also been sold to Vietnamese firms to produce instant coffee, traders said.

    But the ban has affected Indian roasters who had been sourcing their raw material from Vietnam, traders said.

    “Since the ban has been in place, several shipments have been held up and importers do not know how to solve the situation,” said a Vietnamese dealer at a Ho Chi Minh City-based firm which ships coffee to India.

    The ban has also made it difficult for Indian roasters after back-to-back droughts in the past two years damaged various crops, including coffee.

    “Indian roasters may have to switch to other sources, such as the Ivory Coast and other African nations,” a second trader at a European firm in Ho Chi Minh City said.

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  • Vietnam’s coffee prices hit highest since late 2011 on lack of good beans

    Vietnam’s coffee prices hit highest since late 2011 on lack of good beans

    Vietnam’s domestic coffee prices edged up this week to the highest since late 2011 on a shortage of beans qualified for exports as the harvest has been hit by rain, traders said.

    Unseasonal rain from October to December last year in the Central Highlands coffee belt delayed the 2016/2017 crop harvest, resulting in more black and broken beans, with one exporter saying quality was at its worst since 2008. The rainy season normally ends in early October in Vietnam, the world’s top robusta producer and exporter.

    Prices rose to a range of VND46,700-47,300 ($2.05-2.08) per kilogram of robusta on Monday in Dak Lak Province, Vietnam’s largest coffee growing area, from VND46,500-47,100 last Friday when May robusta futures ended nearly unchanged at $2,184 per ton on London’s market. Vietnamese coffee prices closely follow London’s futures.

    At VND47,300 per kg, prices are the highest since the week ending September 16, 2011 when the beans stood at VND47,400. The bitter beans are used mostly for making instant coffee.

    “Nobody is selling, and the raw material is too bad for processing, while there is a lack of export-standard coffee,” said a Vietnamese dealer in Buon Ma Thuot, the capital of Dak Lak. The province produces one third of Vietnam’s total coffee.

    Without using the color sorting machine, the black and broken bean ratio reached 7-8 percent, he said, well above the export standard that requires the defect rate to be at only 5 percent. The dealer declined to be identified by name, but his company has a factory in Dak Lak for processing and exporting robusta beans.

    The shortage of export-standard beans has emerged earlier than expected.

    Last week Do Ha Nam, general director of Intimex, Vietnam’s largest coffee export firm, said that Vietnam could fall short of beans in May or June due to rising shipments and dwindling domestic stocks.

    On the other hand, the price hike shows India’s ban on the import of Vietnamese coffee in place since March 7 has little impact on Vietnam’s market. India often buys Vietnamese robusta grade 3, with 25 percent black and broken beans.

    “India has stopped its import, thus raising the volume of Vietnam’s low-quality coffee,” the Dak Lak-based dealer said, referring to India’s ban, which also targets pepper and four other commodities from Vietnam.

    India’s ban was issued after Vietnam had ruled to suspend the import of India’s five commodities for 60 days starting March 1, citing the infection of peanut beetle.

    Businesses in both countries have opposed the restrictions, saying the import right should be brought back to avoid negative impact on prices, while cargoes infected by insects should undergo fumigation as usual.

    Last Friday the Vietnamese government said it had requested the Indian government to abolish the ban.

    A Vietnam Pepper Association official was quoted by a local newspaper as saying amendments to the restrictions would be made after officials from Vietnam’s agriculture ministry met with the Indian embassy in Hanoi last Thursday to tackle the issue.

    The low-quality coffee beans are estimated to account for 20-30 percent of Vietnam’s output in the 2016/2017 harvest that ended in January, well above the ratio of 1-13 percent observed in previous years, the Dak Lak-based dealer said.

    “Rain during the harvest has caused early flowering, and which could result in multiple stages of harvesting as cherries will ripe at different time,” he said.

  • Starbucks Asia boosts digital engagement

    Starbucks Asia boosts digital engagement

    Starbucks Asia has debuted its mobile Order and Pay app in Hong Kong and India.

    Starbucks globally already offers the largest and most robust mobile ecosystem of any retailer in the world, with more than 12 million Starbucks Rewards members, 8 million mobile paying customers with one out of three now using Mobile Order & Pay, and more than US$6 billion loaded onto prepaid Starbucks Cards in North America during the past year alone.

    Now Starbucks has expanded its digital platform to Asia Pacific with the launch of the Mobile Order and Pay program in Hong Kong and India.

    Starbucks Hong Kong and Tata Starbucks Private Limited are the first retailers in their markets to launch a mobile-ordering feature using its mobile payment technology combined with a loyalty program.

    Customers can choose a store from a map view, browse, select and customise beverage and food items – including the option to modify the size, number of espresso shots and dairy selections – view the estimated pick up times and pre-pay for the order – all within the Starbucks app. Every order is freshly prepared and ready for pick-up in the beverage handoff area. Members can easily collect Stars and earn rewards with Starbucks Rewards loyalty program.

    “Hong Kong is one of the busiest cities in the world and our customers have a very high expectation of convenience,” said Norbert Tan, executive director, Starbucks Hong Kong and Macau. “Starbucks is committed to exploring digital innovations which deliver meaningful value and convenience that enhance the Starbucks Experience.”

    The Mobile Order & Pay feature will be accessible through an update to the Starbucks mobile app. Customers who do not yet have the app can download it from the App Store or Google Play.

    Sumitro Ghosh, CEO of Tata Starbucks India, said mobile app will help meet Indian customers’ needs while serving them seamlessly on the My Starbucks Rewards program.

    “This digital innovation underscores our continued commitment to drive innovation and provide an exceptional and convenient customer experience in our stores across the country.”

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  • Max’s Group eyes more stores as profit grows

    Max’s Group eyes more stores as profit grows

    Max’s Group, the listed dining group, has reported a 12 per cent increase in profit last year as sales rose across all of its banners.

    The company recorded total income of of P561.74 million for 2016, up from P501.39 million the prior year.

    And CEO Peter H. King says better is to come this year. “We remain bullish on the pace of our global business. Our focus this year is to boost recurring income by accelerating store development. Nonetheless, we shall constantly be on the lookout for fresh territories.”

    Max’s Group’s brands include Yellow Cab Pizza, Pancake House, Sizzlin’ Steak and Max’s Restaurants.

    President  Robert F. Trota said the company was able to execute successful strategies amidst “a rapidly intensifying competitive environment”.

    “Overall, it was another productive year for us.”

    Restaurant sales rose 10 per cent to P9.42 billion driven by the opening of 77 new stores and solid same-store sales performance.

    Max’s group now has 623 stores, including 49 overseas. It is targeting 1000 outlets by 2020, 200 of them offshore, and has budgeted P750 million to P800 million to open between 60 and 70 this calendar year. It already operates stores in the UAE, the US, Singapore, Egypt, Jordan and Vietnam.

    The company’s online and delivery business performed exceptionally well last year, with revenues up 24 per cent to P1.08 billion.

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  • Starbucks Coffee Korea sales booms

    Starbucks Coffee Korea sales booms

    Starbucks Coffee Korea said its annual sales topped the 1 trillion won (US$884.17 million) mark for the first time ever last year.

    The local franchise of the US coffee giant, which is operated by retail conglomerate Shinsegae, debuted in South Korea in 1999.

    Annual sales rose 29.6 per cent from the 773.9 billion won of 2015.

    Operating profit also increased 81.2 per cent year-on-year to 85.4 billion won in 2016.

    As at the end of February, Starbucks operated 1008 shops across the country.

    Industry observers said Starbucks’ record is astonishing as annual sales of other players such as Twosome Place and Angel-in-us Coffee are averaging between 100 and 200 billion won.

    “Starbucks gained popularity among women in their 20s and 30s who are attuned to the latest consumer culture of the United States,” an analyst said, adding that Starbucks has constantly launched new menus.

    Starbucks acquired tea retailer Teavana in 2012 and has since rolled out various tea menus along with bakery products.

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  • MK Restaurants plans US$11m expansion

    MK Restaurants plans US$11m expansion

    Thailand’s MK Restaurants Group plans to invest about Bt400 million (US$11.3 million) a year over the next five years to expand in Thailand as well as its overseas markets, including Singapore.

    Chairman/CEO Rit Thirakomen says the group will open 15 MK branches in Thailand this year, together with 25 Yayoi and five Miyazaki Japanese restaurants. Three or four franchised restaurants will be added to each overseas market.
    “We are also open for acquisition deals with select companies in food, services and retailing, so they will be able to use our infrastructure and logistics,” says Thirakomen.

    MK Restaurants Group’s sales rose 4 per cent to Bt15.49 billion last year, but its profit spurted 13 per cent to Bt2.1 billion. It projects growth at 5 to 9 per cent annually for five years.

    The group’s first MK Live flagship restaurant was officially unveiled at The Emquartier shopping mall in Bangkok yesterday, targeting health-conscious and “lifestyle” consumers. It has 135 seats.

    MK’s other brands are Hakata Ramen, Le Petit coffee shop and bakery, Le Siam Thai Restaurant, Miyazaki Teppanyaki, MK Restaurants, MK Gold Restaurants, Na Siam Thai Restaurant and Yayoi Japanese Restaurant. As well as 600 outlets in Thailand, the group has 40 franchised outlets in Indonesia, Japan and Vietnam.

    It has also set up a JV in Singapore to run its restaurants there, including MK, Miyazaki and Yayoi.

    Rit says that under its third-generation management team, MK Restaurant Group has outlined a major expansion plan for this year to cash in on the burgeoning Thai food industry, predicted by Kasikorn Research Centre to grow at 2 to 4 per cent to about Bt390 billion this year.

    Assistant marketing director Tantawan Thirakomen says MK Live is a suki (hot pot) restaurant designed to attract teenagers, young adults and families.

    “The store is decorated to reflect a vegetable greenhouse, with natural decorative items – wood, trees and rocks – as well as hydroponic vegetables displayed on the walls,” she says.

    A feature is its Live Showcase open kitchen where customers can see the chefs working on their meals, including dim sum and meatballs. Also on the menu are lobsters from Canada, scallops from the US and Wagyu beef from Japan.

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  • Muslim Indonesia Joins Global Craft Beer Revolution

    Muslim Indonesia Joins Global Craft Beer Revolution

    Defying an escalating anti-alcohol movement and conservative bureaucrats in the world’s most populous Muslim-majority country, Indonesia’s only craft brewer is tapping into demand for better quality booze among the country’s small number of drinkers.

    Despite the fact about 90% of Indonesia’s population is Muslim, and in theory banned from drinking, most practise a moderate form of Islam and alcohol is available in cities and holiday destinations, with local brewers producing mostly Pilsner lagers.

    Unimpressed by the generic, mass-produced drinks on offer, local businessman Bona Budhisurya and his brother-in-law Jacob Suryanata decided to come up with an alternative, and in 2011 introduced Stark craft beer with a wheat and dark wheat variety.

    “We had been abroad and drank a lot of good quality beer,” said Budhisurya, a member of Indonesia’s Christian and ethnic Chinese minorities, adding that on his return to Indonesia he found that “there was no quality beer here”.

    By producing such brews – generally defined as beverages created in small, independent breweries – they have made Indonesia an unlikely new addition to the global craft beer revolution.

    The trend has seen micro-breweries spring up worldwide as consumers sick of flat, flavourless ales and gassy lagers seek out something with more character. Major beer-consuming countries – such as Britain and the United States – have seen explosive growth in the sector.

    Since its launch, Stark has expanded to include six varieties, including lychee- and mango-flavoured beers and an Indonesian Pale Ale, a less bitter alternative to Indian Pale Ale. But setting up a brewery is a risky move nowadays in Indonesia.

    Although most Indonesians are moderate Muslims and alcohol has long been available, growing opposition from politicians pushing a more conservative brand of Islam has created an uncertain climate.

    The government banned beer sales in the country’s ubiquitous minimarts in 2015, leading to sharp profit falls for major brewers, and Muslim political parties have proposed legislation to prohibit booze consumption entirely, although it seems unlikely this will pass.

    Trouble brewing

    It is hard to get permission to brew alcohol and only a handful of companies – such as Multi Bintang which produces popular local lager Bintang, and is majority-controlled by Dutch brewer Heineken – possess licences that they have had for decades.

    Budhisurya – who studied in the US for several years – eventually managed to obtain a licence in Hindu-majority Bali, a popular holiday island where drinking is more common, and Stark set up its brewery near the town of Singaraja.

    The site has a staff of about 50, including a head brewer hired from Australian beer maker Little Creatures. The company says brewing in Bali gives them an edge as they have easy access to clean water, unlike some other brewers whose operations are near Jakarta where water is often polluted and must undergo a long filtering process.

    “We have a principle – if the water is not good, we can’t make the beer,” told Albert Kurniawan, operations manager at Stark’s brewery,  from the red-brick building.

    Budhisurya said that the biggest challenge has been dealing with the official Food and Drug Monitoring Agency, which must approve alcoholic beverages before their release. He said the official time to get approval from the agency, which is staffed by conservative bureaucrats, is about four months, but in reality it takes six months to a year.

    Still, Stark has persevered and carved out a small niche by mainly selling to bars and some supermarkets favoured by a growing number of Indonesian consumers. Stark says its beers offer a quality alternative to pricey imported ales. It is so far proving a modest success, with about 3,000 to 5,000, 24-bottle cases sold every month, mostly in Jakarta and Bali.

    Due to religious considerations and high taxes that push up prices, relatively few Indonesians drink – alcohol consumption in 2015 was an average of just 1.4 litres per person, according to BMI Research. But the market is still potentially huge in a country of 255 million people, and Stark sees a bright future.

    “It does not matter whether it is local or imported – we are a craft beer, which means quality,” Budhisurya said.