Retail News CRM

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.

  • Chatime Malaysia master franchisor axed

    Chatime Malaysia master franchisor axed

    Loob Holdings, which owns and runs the Chatime Malaysia outlets, says it will seek legal advice in response to news of a purported termination of the franchise agreement with La Kaffa International of Taiwan.

    Loob CEO Bryan Loo says that while the franchisor owns the brands, all Chatime outlets in Malaysia are owned and run by his company, either through direct ownership, sub-franchisees or joint ventures with sub-franchisees.

    While awaiting the legal process, he says all 165 Chatime outlets in Malaysia will be open as usual with Loob as master franchisee.

    Earlier, La Kaffa chairman Henry Wang announced the termination of Loob Holdings’ Chatime master franchisor contract, which it has held for six year, because of disagreements in the direction of business operations.

    Wang said La Kaffa would take over the Chatime business in Malaysia, assuring franchisees they would continue to receive support from the company.

  • Taco Bell China launches in Shanghai

    Taco Bell China launches in Shanghai

    Mexican-inspired restaurant chain Taco Bell has opened its first outlet in China, near Shanghai’s landmark Oriental Pearl Tower in the Lujiazui business district.

    The restaurant has opened in conjunction with Yum China Holdings, which is the licensee of Yum! Brands in Mainland China.

    “Leveraging our deep insights into Chinese consumer preferences, developed from close to 30 years working in this market, we researched and fine-tuned the Taco Bell menu for China, and the initial response from customers is very encouraging,” says Yum China CEO Micky Pant.

    Favourite items on the brand’s menu have been adapted to local tastes, plus sauces have been developed. Items such as the Shrimp and Avocado Burrito will be offered only in China Taco Bells, and the Crunchy Taco Supreme now has Taco Bell’s signature nacho cheese sauce while the Volcano Chicken Burrito features spicy Sriracha sauce.

    Customers can order shared plates featuring seasoned nacho chips, spicy fried chicken and Mexican fries. Drinks available include cold draft beer and specialty cocktails such as the Margarita and the Mojito.

    There is an open kitchen so customers can see their food being made to order. There are also self-order kiosks.

    The restaurant has been officially launched following a soft opening during which customers have been sharing their experience of the brand through social-media posts, blogs and videos. More than 1000 people took part in a selfie soft-opening promotion.

    taco-bell-shanghai-inside

    California inspiration

    “Built around the concept of ‘Live Mas’, which literally means ‘Live More’, Taco Bell encourages its customers to try new things,” says Pant. “I look forward to creating experiences that surprise and delight people as we expand the Taco Bell brand in China.”

    The Shanghai restaurant showcases Taco Bell’s classic California-inspired look and design. It features surfboards hanging from the ceiling as well as guitars and graffiti art. It also integrates advanced technology throughout, including free Wi-Fi, digital ordering kiosks, digital menu boards and a range of payment options.

    “Building restaurants in new international markets is a key component to the overall growth and evolution of Taco Bell, and we’ve just scratched the surface of our global unit expansion potential,” says CEO Brian Niccol. “The opening of this restaurant in China is an exciting milestone for the brand, as this market holds tremendous growth potential.”

    Taco Bell has more than 7000 restaurants, more than 300 of them in 26 countries outside of the US. It aims to reach 1000 restaurants internationally by 2022.

    Yum China Holdings, with executive offices in Shanghai, has exclusive rights in mainland China to KFC and Pizza Hut as well as Taco Bell. Yum China also owns the East Dawning and Little Sheep concepts. With more than 7300 restaurants and 400,000-plus employees in more than 1100 cities, Yum China generated more than $8 billion in system sales in 2015.

    Taco Bell, a subsidiary of Yum! Brands, was the first quick-service restaurant to offer American Vegetarian Association (AVA) certified menu items. Taco Bell’s 350-plus franchise organisations serve more than 42 million customers each week through 7000 restaurants across the US, as well as through its mobile, desktop and delivery ordering services.

    Based in Louisville, Kentucky, Yum! Brands has nearly 43,000 restaurants in 135 countries and territories. Worldwide, it opens more than six new restaurants a day on average.

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  • Indonesia to import 1.5 million tons of sugar in first half

    Indonesia to import 1.5 million tons of sugar in first half

    The government has decided to allow imports of 1.5 million tons of raw sugar to meet domestic demand in the first half of the year.

    Trade Minister Enggartiasto Lukita said 11 companies had been appointed to import the commodity, adding that it was not yet known when the sugar would arrive in Indonesia.

    He said his ministry would change the distribution of sugar to prevent oversupplies in the market.

    Enggar said one of the requirements for firms to import raw sugar was to demonstrate a commitment to develop sugarcane plantations.

    The regulation to develop sugarcane had existed for a long time, and the government would monitor the commitment of each company, he added.

    “The government will always remind the companies to show their commitment. If they fail to meet their commitment, we will not allow them to import raw sugar,” said the minister.

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  • Vinamilk stake sale set to flop after Vietnam imposes investment caps

    Vinamilk stake sale set to flop after Vietnam imposes investment caps

    The market has been surpised by news that each investor could only buy up to 2.7 percent of the dairy giant’s shares. The Vietnamese government will likely fail to sell much of the 9 percent stake it has offered in dairy firm Vinamilk, one of its most attractive assets, with investors put off by highly restrictive investment caps and unfavorable market conditions.

    The State Capital Investment Corporation (SCIC), which represents the government’s 44.7 percent ownership in Vinamilk, took the market by surprise last month when it announced each investor could only buy up to 2.7 percent of Vinamilk’s shares.

    That has helped result in just two bids, worth a combined $500 million, by wholly owned units of Thailand’s Fraser and Neave Ltd for the shares due to sold on Monday. One of the units is already Vinamilk’s second-biggest shareholder with a 10.95 percent stake.

    The muddled sale process has underscored Vietnam’s relative inexperience and investor wariness about state control as the government seeks to push forward with a major privatization drive, one that already been hampered due to the small stakes on offer and concerns about vested interests.

    Also detering investors has been a drop in Vinamilk’s share price below the minimum bidding price set by the government of VND144,000. The stock has been hit by a sell off in Vietnamese shares as investors shun emerging markets amid uncertainties after the U.S. presidential election and a potential rates hike by the Federal Reserve.

    Lessons learned

    “The minimum bidding price of VND144,000 is actually not expensive for a strategic investor in Vinamilk, but the issues are the timing and the restrictions that come with it,” said Nguyen Thanh Lam, deputy manager at Maybank Kim Eng Securities in Vietnam.

    Vinamilk, Vietnam’s top listed firm by market value, is seen as one of the country’s most attractive companies as it commands around half of domestic market for dairy goods and has seen steady earnings growth.

    Its shares have jumped 20 times in value since its debut on the Ho Chi Minh City Stock Exchange 10 years ago.

    Other shares offerings coming up include an initial public offering of budget carrier VietJet Air, which is expected to raise up to $194 million, and the sale of government shares in Vietnam’s top brewers Sabeco and Habeco.

    Fiachra Mac Cana, managing director and head of research at Ho Chi Minh Securities, said the Vinamilk share sale did not necessarily bode ill for other asset sales.

    “I feel that the sale is actually a good initial step with a few lessons learned as to how to do better next time,” he said.

    “In any event, the government hasn’t been doing this for that long so in a way we should expect them to be learning as they go.”

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  • Heineken expands production, buys into local top brewer in Vietnam

    Heineken expands production, buys into local top brewer in Vietnam

    The beer maker is aggressively pouring money into Vietnam, one of the biggest markets in Asia-Pacific. As Heineken considers Vietnam a vital driver for its business growth in Asia-Pacific, the Dutch beverage giant is trying to grasp more market share.

    Heineken in July took over a facility from rival Carlsberg in the southern port city of Vung Tau in an attempt to boost its brewing capacity to satisfy the thirst of local drinkers who, according to Euromonitor International, are expected to consume more than 4.04 billion liters of beer this year, the most in the region and up from 3.88 billion liters last year.

    The Amsterdam-based company has planned to boost its capacity at the Vung Tau facility to 610 million liters from 50 million liters, the Nikkei Asia reported.

    Heineken, which entered Vietnam in 1991, currently operates in the market through two companies, including wholly-owned Asia Pacific Breweries and Vietnam Brewery, in which Heineken has a 60 percent stake.

    It is now the second biggest brewer in Vietnam controlling 25 percent of the local beer market, after dominant player Sabeco, which has 40 percent of the market.

    Heineken, which positions itself on the market as the brewer of high-end beers, has increased its annual output by 14 percent since 2012, which is more than twice the output growth rate of Sabeco, the Nikkei Asia reported, citing data from local securities company Viet Capital.

    Heineken produced 729 million liters last year, compared to Sabeco’s 1.38 billion liters.

    As part of its expansion plan, Heineken plans to buy into Sabeco as the government is divesting from the top local brewer.

    Heneiken is seen among potential investors keen to aquire more shares in Sabeco, a 90 percent state-owned company due to be listed in Ho Chi Minh City on December 20 at the latest. Heineken is reported to have already owned 5 percent in Sabeco.

    The Vietnamese government on July 20 scrapped a long standing foreign-ownership cap in many listed companies, but the 49 percent limit stays put for Sabeco.

    In the latest privatization push, the government will sell a 53.6 percent stake in Sabeco this year and the remaining in 2017.

  • Japan tightens inspections on shrimp shipments from Vietnam

    Japan tightens inspections on shrimp shipments from Vietnam

    The island nation now screens every last shrimp export for a banned antibiotic. Japan now screens every shipment of Vietnamese shrimp for a banned antibiotic, according to NAFIQAD Vietnam’s seafood quality control.

    Vietnam does not consider the substance fit for use as a direct food additive in foods for human consumption, according to the Vietnam Association of Seafood Exporters and Producers (VASEP) which reported that Japan raised its shrimp sampling from 30 to 100 percent of imports on December 12.

    Local shrimp exporters have been warned to keep antibiotic sulfadiazine residues below 0.01 parts per million, said Le Hong Phong, deputy head of NAFIQAD.

    By September, the E.U. had rejected 2.2 times more shrimp than the entire preceeding year, according to NAFIQAD, which called for special scrutiny of seafood coming out of the four central provinces affected by Taiwan Formosa Plastics Group’s discharge of toxic waste in April.

    The following month, the European Union reported having rejected 11 shipments of shrimp in the past nine months due to high levels of heavy metals. The European Commission Rapid Alert System for Food and Feed found the shipments contaminated with mercury and cadmium.

    Vietnamese trade commissions in the EU, Japan, and the United States have received roughly 180 warnings about seafood contaminated with dangerous levels of antibiotic and chemical residues so far this year.

    Australia, which remained Vietnam’s largest shrimp importer for the past five years, now requires every seafood shipment from Vietnam to be scrutinized for biological toxins and bacteria.

    During the first eleven months of the year, Vietnam’s seafood exports had edged up 6.9 percent from 2015 to nearly $6.4 billion, customs statistics showed.

    At the start of the year, Vietnam announced plans to export $8 billion worth of seafood this year after reporting $6.6 billion in seafood exports in 2015.

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  • McDonald’s China and Hong Kong deal formally announced

    McDonald’s China and Hong Kong deal formally announced

    McDonald’s has confirmed the sale of its China and Hong Kong operations to an investment consortium for US$2.08 billion (HK$16.14 billion).

    Under the deal, the purchasers, Citic Limited, Citic Capital and The Carlyle Group, will open 1500 new outlets.

    Phyllis Cheung, CEO of McDonald’s China, says the Beijing-based Citic companies will together hold a majority 52 per cent stake in the spun-off business and US-based Carlyle and McDonald’s will hold 28 per cent and 20 per cent, respectively. The consortium will run the business for 20 years.

    McDonald’s says it will now re-franchise all its 2600+ stores in Mainland China and Hong Kong to improve sales performances, part of a global effort to cut costs.

    Cheung told China Daily the new company will use its Citic’s strategic relationship with SF Express and Tencent Group Holdings (the owner of WeChat) to facilitate delivery, enhance restaurant convenience and boost its “retail digital leadership and menu innovation”.

    “China and Hong Kong represent an enormous growth opportunity for McDonald’s,” said McDonald’s CEO Steve Easterbrook in a statement confirming the deal, which has been an open secret for some weeks.

    “This new partnership will combine one of the world’s most powerful brands and our unparalleled quality standards with partners who have an unmatched understanding of the local markets and bring enhanced capabilities and new partnerships, all with a proven record of success,” he said.

    The deal will be finalised in mid-2017.

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  • Former Petronas regional marketing head to Pizza Hut as CMO

    Former Petronas regional marketing head to Pizza Hut as CMO

    QSR Brands, one of the largest quick service restaurants operator in Malaysia as well as a leading brand in the Southeast Asia region, is promoting Merrill Pereyra to chief executive officer.   Along with Pereyra’s promotion, it is also appointing Jean Ler as chief marketing officer for Pizza Hut Malaysia.

    Ler will head up marketing, including brand management, innovations and consumer insights to rejuvenate the Pizza Hut brand in Malaysia. She will look to strengthen the relevance and connection to consumers by bringing them delicious products, renewed marketing communications and exciting enhanced experiences.

    Ler has a marketing career that spans 20 years across various reputable local and multinational food & beverage companies. She was most recently regional head of Marketing for Petronas Lubricants AsiaPac following various positions of increased responsibility at Dutch Lady and KraftFoods/Mondelez where she successfully regained market leadership position for the Dairy and Biscuits portfolio of the respective brands.

    Meanwhile, CEO Pereyra joined QSR Brands in June 2016 as COO to further shape the company’s growth story in the region. His current CEO role includes leadership of KFC and Pizza Hut in Malaysia, Singapore, Brunei, and Cambodia. His promotion follows the departure of Rohan St. George who helmed QSR Brands from 2013 to 2016.

    With over 25 years of years of innovative and energetic leadership in the Middle East, South Pacific, Australia and Asia, Pereyra is renowned for leveraging global resources, capabilities, and relationships to promote growth of brands in new markets. He has a successful track record in setting up new businesses in six countries, in developing and implementing strategic business plans as well as fast tracking high potential employees to leadership positions.

    Over the last 30 years, Pereyra has assumed senior leadership, sales and marketing positions at various leading quick service restaurants such as Domino’s, Healthy Habits and McDonald’s. In his last two roles, he was CEO of Domino’s and managing director of Healthy Habits in Australia. Prior to that, he spent 23 years at McDonald’s in four different countries.

    Eric Leong has also been appointed as GM for Pizza Hut and will oversee the planning, coordinating, and managing field activities including restaurant and delivery management, quality assurance, and implementing special projects. This is in line with Pizza Hut’s drive for superior customer service and operational efficiencies to cement a solid foundation for ambitious business growth.

    He brings more than 27 years of experience in the food and beverage industry, with extensive experience in sales and retail. Prior to joining Pizza Hut Malaysia, he was the managing director at Minor Food Group Singapore, which is part of Minor International, one of the largest leisure, F&B and retail companies in the Asia Pacific.

    He was also supervising director and general manager at Berjaya Corporation Berhad in 2012, holding both portfolios comprising Papa John’s Pizza Malaysia and Philippines, as well as Wendy’s Malaysia.

    Both Ler and Leong witll report to  Pereyra in his new role as CEO.

    Pereyra said, “At the heart of everything we do at QSR Brands, is our consumers. This is something Eric and Jean truly understand and embody. They both bring a wealth of experience and a fresh perspective to Pizza Hut.” “I look forward to working closely with them to deliver our plans for 2017 and beyond to improve our brand value and provide Malaysians with new and exciting dining experiences that appeal to their tastes and hearts.”

    This year Pizza Hut celebrates its 35th anniversary in Malaysia

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  • Ippudo restaurant owner applies for listing

    Ippudo restaurant owner applies for listing

    Ramen restaurant chain Ippudo’s owner is expected to list shares on the Tokyo Stock Exchange as early as March.

    The total market value of the initial offering is projected to be around 30 billion yen (US$259 million).

    Chikaranomoto Holdings has about 60 Ippudo restaurants as well as other brands outside of Japan. It filed an initial listing application in December, which means approval could come next month. The listing is expected to let the group accelerate expansion in domestic and overseas markets.

    Company founder and chairman Shigemi Kawahara opened his first ramen shop in 1985 in Fukuoka Prefecture in southwestern Japan. The company posted group sales of 20.8 billion yen for the year through to March 2016, up 17 per cent from the previous year.

    Ippudo began expanding into foreign markets in 2008, establishing itself first in New York. The chain now has shops in China, France and other countries, and will open its first outlet in Myanmar soon.

    Inspired by New York’s cocktail bars, Chikaranomoto Holdings opened standing-style ramen shops in Tokyo and nearby areas last year, and it plans to open more in Kyushu soon.

    Ippudo also has five branches in the Philippines.

  • Vietnamese expected to drink up this Tet

    Vietnamese expected to drink up this Tet

    Top brewer Habeco expects sales of nearly 147 million liters of beer during the biggest holiday, up 6.1 percent year on year. Vietnam’s brewers are gearing up for a massive drink-up this Lunar New Year holidays, or Tet.

    Hanoi-based top brewer Habeco plans to churn out 146.8 million liters of beer during the Lunar New Year, up 6.1 percent from the same period last year, according to the Ministry of Transport’s official mouthpiece Bao Giao Thong.

    Meanwhile, beer consumption in Ho Chi Minh City is projected to jump 30 percent (from last year) to around 40 million liters during Tet, according to estimates released by the municipal Department of Industry and Trade.

    The cities will provide the country’s key booze markets this Lunar New Year, which falls on January 28.

    The Vietnam Beer Alcohol Beverage Association expects beer production to grow by 25 percent, annually, before hitting 4 billion liters in 2020.

    Over the past five years, Vietnam has doubled its consumption of beer to more than 3 billion liters per year. Each Vietnamese person drinks an average of 27.4 liters, placing them squarely in the world’s top 25 beer drinkers.

    In 2015, Vietnam produced an estimated 3.4 billion liters of beer and 300 million liters of liquor.

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  • US to help Korea’s egg shortage crisis

    US to help Korea’s egg shortage crisis

    The U.S. Department of Agriculture said Friday it is discussing with Korea ways for American egg producers to tap into the Korean market that is suffering from an egg shortage as a result of a massive outbreak of avian influenza.

    Amid the rising egg prices due to the outbreak of bird flu that was detected in November, the department spokesperson said that the U.S. and Korea are “engaged in technical discussions to provide access for U.S. egg producers to the Korean liquid egg market.

    “Imports from the U.S. could help limit escalating production costs for processed food manufacturers in Korea and shield consumers from soaring egg prices,” the official added.

    He did not mention when the U.S. will start exporting eggs to Korea.

    Starting Saturday, the Korean discount store chain Homeplus raised the retail price of 30 eggs by 9.6 percent to 7,990 won ($6.67) at its 142 stores. Homeplus has increased its egg prices five times in a month and retail prices have jumped 31.4 percent over the month.

    The latest price hike by Homeplus came a day after its rival Emart increased the price of 30 eggs by 8.6 percent to 7,580 won.

    Officials of the companies expect egg prices to go up again ahead of the Lunar New Year holiday later this month.

    The American spokesperson also said that the U.S. Department of Agriculture is working with the Korean government and U.S. industry associations to facilitate and expedite registration of additional U.S. suppliers of table eggs to the Korean market.

    “In the U.S., many government agencies cooperate to ensure the safety of U.S. egg products including the Agricultural Marketing Service, the Animal and Plant Health Inspection Service, the Food Safety and Inspection Service, and the Food and Drug Administration,” the official said.

    Since the bird flu outbreak, Korea’s quarantine officers have culled more than 30 million birds, including 25.8 million chickens, which has resulted in the reduction of the country’s daily egg output by about 30 percent.

    To encourage imports, the Korean government decided earlier this week to remove import tariffs on egg products until Jun. 30. Currently, Korea imposes tariffs of 8 to 30 percent on imported egg products.

  • Martell launches fiery new edition of its Cordon Bleu cognac

    Martell launches fiery new edition of its Cordon Bleu cognac

    Pernod Ricard Travel Retail Asia Pacific has launched Martell Cordon Bleu Intense Heat Cask Finish – a limited edition reinterpretation of the Martell Cordon Bleu — featuring an eye-catching new package design.

    Martell Cordon Bleu Intense Heat Cask Finish is created through a toasting and six month finishing process never before used by Martell, which it says results in heightened fruit and spice taste notes. By increasing the heat applied to Martell Oak casks in a technique called ‘chauffe crocodile’, the new cognac “boasts intense aromas, a fruity citrus sweetness, a toasted nuttiness and robust spice”, the company added.

    The new limited edition is presented in a deep blue box, artfully embossed to replicate a charred wood effect. Aditionally, invisible thermochromic inks, which react with body temperature, turn fiery red when the box is rubbed, creating the illusion of glowing embers.

    Throughout January and February 2017, travellers in Hong Kong International Airport, Singapore Changi Airport, Taiwan Taoyuan International Airport, China and Malaysia airports as well as Hong Kong border shops will be able to experience Martell Cordon Bleu Intense Heat Cask Finish through tasting activities in store.

    In addition, to celebrate the Chinese New Year, Asia Pacific travel retail customers who purchase Martell Cordon Bleu Intense Heat Cask Finish will also receive a complimentary special edition red shopping bag.

  • House of Chivas pours Regal Ultis to Qantas First Class customers

    House of Chivas pours Regal Ultis to Qantas First Class customers

    To celebrate the launch of Chivas Regal Ultis, Pernod Ricard Travel Retail Asia Pacific is offering the blended malt Scotch whisky to Qantas First Class customers until March.

    Chivas Regal Ultis features on the summer menu in the Sydney and Melbourne First Lounges and in a bespoke cocktail called ‘Fine St Blend’. First Class Qantas passengers will also be offered the spirit onboard and can buy it through Qantas epiQure and Qantas inSky shopping pre-order sites.

    Pernod Ricard Travel Retail Asia Pacific Senior Brand Manager Katie Gee said: “We know our Chivas Regal drinker travels frequently and is always discovering and seeking out new experiences. Showcasing our new product, Chivas Regal Ultis, with Qantas is a fantastic platform to connect with whisky enthusiasts along their journey.”

    To further promote the Chivas Regal Ultis launch in the region, Pernod Ricard Travel Retail Asia Pacific has partnered with duty free retailers to create large scale promotions in airports. Tasting bars, ambassador appearances and gifts-with-purchase were featured in December and will continue in selected locations throughout January.

    Chivas Regal Ultis is available now in global travel retail and in selected domestic retailers. The Scotch is also available through Qantas epiQure and Qantas inSky shopping pre-order channels in Asia Pacific.

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  • Retailers to raise prices of alcoholic beverages

    Retailers to raise prices of alcoholic beverages

    South Korea’s discount chains and convenience stores said Thursday they will raise prices of beer and soju, a popular Korean distilled beverage, beginning next week.

    CU, a major South Korean convenience store chain, is set to raise prices of two brands of 360 milliliter soju bottles — Hite Jinro’s Chamisul and Lotte Chilsung Beverage’s Chum-Churum — to 1,700 won (US$1.4) from 1,600 won.

    The convenience store also plans to raise prices of Oriental Brewery’s Cass and its rival Hite Jinro’s Hite to 1,900 won each from 1,850 won and 1,800 won, respectively.

    GS25 and Seven Eleven, two other major convenience store chains, also plan to follow suit.

    E-Mart, the No. 1 discount store chain in South Korea, is also set to sell a 500 ml beer bottle for 1,410 won, up from 1,330 won. It will also raise soju prices to 1,220 won from 1,140 won.

    Lotte Mart, a discount store chain operated by South Korea’s retail giant Lotte Group, said it will raise prices of a 640 ml beer bottle to 1,830 won from 1,750 won.

    The planned price hike came in response to a recent government decision to raise a subsidy for empty bottles of beer and soju.

    Consumers can now receive 100 won from retailers in return for handing over an empty soju bottle, compared with 40 won in the past. In case of beer, consumers can receive 130 won, up from 50 won when they return an empty bottle of beer.

    The price hike came just months after Oriental Brewery Co. and Hite Jinro raised their beer prices by an average 6 percent and 6.33 percent, respectively.

    AB InBev, the world’s largest beer producer, purchased Oriental Brewery Co., South Korea’s biggest brewer, in 2014.

     

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  • Vietnam coffee exports grew in 2016 despite drought

    Vietnam coffee exports grew in 2016 despite drought

    Vietnam’s coffee exports have rebounded, notching up double-digit growth this year after being hit by the most-severe drought in almost a century.

    Coffee exports grew, on-year, by 33.6 percent in terms of volume, reaching nearly 1.8 million tons.

    The Ministry of Agriculture and Rural Development said Vietnam’s coffee industry regained its momentum after seeing exports decline by more than 20 percent on-year in 2015.

    Germany and the U.S. remained the two largest buyers of Vietnamese beans and, this year, sales to the two markets grew by 42.4 percent and 49 percent, respectively.

    Exports of coffee also saw impressive increases in emerging markets like the Philippines (83 percent), Algeria (68 percent) and China (50 percent).

    Analysts fear ongoing El Nino conditions could result in a 20 percent decline in coffee production during the coming year.

    Roughly a fifth of Vietnam’s total plantations had been damaged by water shortages, according to the Association of Coffee and Cacao (VICOFA).

    Flooding struck the Central Highlands’ coffee belt in November, making harvesting and drying rather difficult.

    VICOFA chairman Luong Van Tu, however, says Vietnamese enterprises should shift their focus to processing coffee rather than increasingly the amount of raw materials shipped abroad.

    He said new free trade agreements will slash tariffs on coffee sales to the E.U. and South Korea from 15 percent to under five in the coming year.