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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.

  • American franchise coffee house interested in kerinci coffee

    American franchise coffee house interested in kerinci coffee

    An American franchise coffee house is interested in arabica kayu aro coffee from Kerinci district, Jambi province, the Head of Processing and Marketing of Crops at Jambi’s Plantation Office, Arsyad Nur, said on Wednesday.

    “This coffee won the national coffee contest,” he added.

    Currently, the coffee house, which has franchises around the world, is exploring the possibility to cooperate with arabica coffee farmers in Kerinci.

    In Jambi, Nur noted, arabica kerinci only grows in Kayu Aro, which is a plateau situated at a height of 1,400-1,700 meters above sea level.

    “One coffee rod can produce eight kilograms of coffee beans at the most. Within two weeks, the local farmers can produce 20 tons of arabica kerinci coffee beans,” he informed.

    According to him, the arabica kerinci plantations are spread over 1,500 hectares.

    The local administration is working to register arabica kerinci with the Directorate General of Intellectual Property Rights at the Ministry of Law and Human Rights in order to obtain legal protection of Geographical Indications (GI).

    “Arabica Kerinci has specific characteristics that deserve to get GI categorisation,” Nur pointed out.

    Besides arabica kerinci, he added, the district has robusta merangin and liberika tungkal coffee. “Liberika Tungkal grows at an elevation of 0-100 meter above sea level,” he explained.

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  • Jollibee sales strongest in years

    Jollibee sales strongest in years

    Jollibee Foods Corp (JFC) has reported that its system-wide sales grew by 15.1 per cent in the second quarter compared to sales for the same period of 2015.

    For the first half of the year, sales of the Philippines’ largest foodservice company grew by 14.9 per cent to Php71 billion, while revenues grew 13.7 per cent to Php54 billion, compared with the first half of 2015. In the same period, profits rose by 14.8 per cent to Php3.1 billion from Php2.7 billion.

    JFC CEO Ernesto Tanmantiong said the Philippine business, which accounts for at least 80 per cent of the company’s worldwide sales, has been experiencing its strongest organic growth in many years.

    Tanmantiong said all brands performed ‘very well’ and he attributes the record growth to continued improvement in product quality and value offering supported by focused marketing campaigns, store expansion and renovation, low inflation rate, healthy growth of the country’s economy and election-related spending.

    Sales growth in the Philippines accelerated to 17.9 per cent in the second quarter, with brands growing in double digits.

    “Our business abroad had mixed performance. Southeast Asia grew by 37 per cent, led by Singapore with 56 per cent and Vietnam with 49 per cent. The Middle East rose by 17 per cent and the US increased by 11 per cent. China’s sales decreased by 5.7 per cent due to competitive pressure on Yonghe King, our largest brand there,” said Tanmantiong.

    “We look forward to a strong recovery of our Yonghe King business in the months ahead with the launch of new products with high value and taste scores supported by strong marketing campaigns and continuously building  a significant business in the People’s Republic of China and other parts  of the world.”

    JFC CFO Ysmael Baysa said:  “We look forward to continued strong profit growth while preparing for likely higher inflation rate in 2017 in the Philippines and other parts of the world and improving the profitability of our joint venture businesses.”

    JFC has a 50 per cent  interest in the following joint ventures with the number of stores indicated: Highlands Coffee (Vietnam, Philippines) 131, Pho 24 (Vietnam, Indonesia, Cambodia, Korea and Australia) 32, 12 Hotpot (China) 20, others 8; and a 40 per cent interest in Smashburger that has 366 outlets, mostly in the US.

    As of June 30, JFC was operating 2528 restaurant outlets in the country: Jollibee 939, Chowking 457, Greenwich 237, Red Ribbon 378, Mang Inasal 455 and Burger King 62. Abroad, it had 655 stores: Yonghe King (China) 321, Hong Zhuang Yuan (China) 40, San Pin Wang (China) 59, Dunkin’ Donuts (China) 4, Jollibee 151 (US 33, Vietnam 79, Brunei 14, Saudi Arabia 10, Qatar 2, Kuwait 4, Hong Kong 1, Singapore 4,  Bahrain 1 and UAE 3), Red Ribbon in the US 33, Chowking 44 (US 16, UAE 20, Qatar 4, Oman 2, Kuwait 1 and Saudi Arabia 1), Jinja Bar (US) 3.

    The JFC Group has 3183 stores worldwide.

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  • Asia leads Burger King sales growth

    Asia leads Burger King sales growth

    Burger King sales are growing faster in Asia than in any other part of the world, reports parent Restaurant Brands.

    Sales in Asia rose 5.3 per cent, according to the company’s second quarter earnings data released overnight. Latin America sales rose 4.9 per cent. The performance in those two markets was enough to offset a 0.8 per cent decline in same-restaurant sales across the US and Canada, resulting in flat global systemwide sales growth.

    The success in Asia comes at a time when rivals Yum Brands (parent of KFC and Pizza Hut) and McDonald’s are struggling to maintain growth in Asia, where both companies are trying to sell long-term franchise rights.

    It also partly explains why Restaurant Brands this week announced a priority of expanding its Tim Hortons coffee cafe brand into Asia, with the Philippines the first stop.

    The Asia and Latin American figures were high points in a result best described as “adequate”.

    However, Neil Saunders, CEO of Conlumino, observes that although the headline result of a 0.2 per cent decline in overall revenue looks somewhat gloomy, this is mostly the consequence of a strong US dollar and weak Canadian dollar, which especially affected revenues from Canadian-based Tim Hortons.

    “The underlying numbers are slightly better, with both divisions in positive territory on a comparable sales basis and system-wide sales up by 0.6 per cent even after the impact of exchange rate fluctuations.”

    Saunders says the loss of sales momentum from previous quarters is in line with recent numbers from rivals like McDonald’s and Yum.

    “This trend is being driven, primarily, by a slowdown in spending on eating out by American consumers.  The softness in the US market is disappointing given the initially positive reaction to menu changes and the introduction [by Burger King] of hot dogs. It underlines the fact that menu change and innovation is not now something that can be done periodically: fast food players need to see this as a constant process that has to be supported by ongoing promotions and marketing activity.”

    Saunders believes McDonald’s continues to hold a slight edge over Burger King, and is doing more to shake up its traditional business model to maintain consumer interest and drive growth.

    “All that noted, the one saving grace for Burger King is good cost control which allowed [pre-tax earnings] to grow by 3.7 per cent this quarter.

    “Overall, Restaurant Brands continues to make progress; but with spend tightening and competition intensifying it now needs to up the pace of innovation if it is to grow further,” concluded Saunders.

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  • Starbucks Korea offering workers education

    Starbucks Korea offering workers education

    Starbucks Korea employees are being offered a chance to achieve their academic goals.

    The company has introduced a college achievement plan to enable employees (termed “partners”) to finish four-year college degrees. Already, 146 have enrolled at Hanyang Cyber University.

    “At the core of our success are our partners who deliver an unparalleled Starbucks experience, and we are pleased to help them achieve their academic dreams,” says CEO Seock-koo Lee. “The college achievement plan gives partners the chance to earn their degree without the financial burden.”

    starbucks scholar

    Hanyang Cyber University offers 36 majors ranging from liberal arts to business management. Barista training is also included. As all regular classes and tests are delivered online, students can focus on their jobs as well as their studies without having to attend a physical school.

    “The Starbucks mission of inspiring and nurturing the human spirit resonates with our goal of providing young talent with access to higher education for their pathway to success,” says the university’s office of admissions dean Seungyeon Han.

    Employees applying for the program need to provide their study plans and complete aptitude tests. Once admitted, they can choose any major, even if unrelated to their work.

    Starbucks Korea estimates that more than 1000 employees will be able to earn bachelor’s degrees by 2020. Along with the university, it plans to recruit up to 300 students each school year. Those who achieve a grade point average of B or higher will be entitled to a Starbucks scholarship covering full tuition.

    Employees who receive the scholarship are not obligated to work for Starbucks after graduation.

    The program is similar to the Starbucks college achievement plan in the US, introduced in 2014. It allows eligible employees to earn their bachelor’s degree with full tuition reimbursement through Arizona State University’s online degree program.

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  • Burgers and beers lead Hong Kong restaurant industry growth

    Burgers and beers lead Hong Kong restaurant industry growth

    Restaurant industry analysts remain sceptical about the sector’s growth prospects despite promising year-on-year figures.

    Census and Statistics Department figures show restaurant receipts in Hong Kong increased 3.1 per cent year on year, at the end of the second quarter 2016.

    Fast food and bars did the best while Chinese restaurants saw fewer diners and lower spending, according to the figures.

    Fast food receipts increased 6.4 per cent year on year, bar sales increased 4.3 per cent, other drinking venues’ sales increased 3.9 per cent and Chinese restaurants increased 1.7 per cent.

    But the upwards trend for the local restaurant industry could be short lived, according to Simon Wong Ka Wo from the Federation of Restaurant and Related trades.

    There will be a 2 to 3 per cent “slight decrease” in the restaurant sector in terms of its overall performance for the whole year, Wong forecast. He warned that some Hong Kong restaurants might have to “suffer a little bit” over coming months, but the industry will bounce back in the fourth quarter.

    “The increase seems a little bit surprising to me as the performance of the economy for the past six months does not seem so promising,” Wong said.

    “The major reason is people tend to spend more on some middle to low-end restaurants like McDonald’s instead of high-end ones due to the stagnant economy, contributing to the increase in overall value of total receipts.”

    The optimistic figures come against a backdrop of slowing retail trade, which registered an 8.9 per cent decrease year on year.

    Professor Terence Chong Tai-Leung from the Chinese University of Hong Kong said rising incomes could help the city rebound from the retail slump.

    “As you can see from the low unemployment rate and the increased average income figure recently, Hong Kong people still have large purchasing power,” he reasoned.

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  • YLKI Protests Indecent Bikini-brand Snack

    YLKI Protests Indecent Bikini-brand Snack

    Chairman of Executive Committee of the Indonesian Consumers Organization Foundation (YLKI) Tulus Abadi protested on a Bikini-brand snack product. Tulus said the brand sold in social media is considered as indecent.

    “That is a snack (fried noodle) product with a non-educational, even indecent, brand name”, Tulus said Wednesday, August 3, 2016.

    Recently, information of the Bikini snack circulates through chain messages. The product shows a woman’s body from shoulder to hip with just wearing a bikini. The worst part is the package has “remas aku” (squeeze me) slogan written on it.

    YLKI protested the circulation of the product and asked to recall the product from the market. Tulus requested the National Drug and Food Agency of Indonesia (BPOM) to reprove the manufacturer and demand to shut down any form of sales through social media.

    “Online selling, particularly via e-commerce Olx.com and Bukalapak.com, must be immediately stopped. Consumers must not purchase the product, especially the children,” said Tulus.

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  • Krispy Kreme snapped up by retail giant

    Krispy Kreme snapped up by retail giant

    Corporate retailer JAB Holdings has successfully concluded its purchase of Krispy Kreme Doughnuts, a deal first mooted in May.

    As a result, share-trading on the NYSE has ceased as the ‘sweet treat’ maker becomes part of a global retail portfolio of retailers as diverse as Coty and Jimmy Choo.

    Privately-owned JAB Holdings’ portfolio includes controlling stakes in Bally, Belstaff, Peet’s Coffee & Tea, Espresso House in Scandinavia, Jacobs Douwe Egberts (JDE), the largest pure-play FMCG coffee company in the world, and a minority stake in Reckitt Benckiser.

    Under the terms of the latest transaction, Krispy Kreme shareholders will receive US$21 per share in cash.

    Krispy Kreme, founded in 1937, today boasts more than 1100 shops in more than 26 countries around the world.

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  • Bo’s Coffee Philippines eyes expansion abroad

    Bo’s Coffee Philippines eyes expansion abroad

    Bo’s Coffee Philippines is set to expand its network of 80 stores abroad.

    “We will be opening a franchise abroad by the end of this year. Further details of which will be announced in the fourth quarter of this year,” says CEO and founder Steve Benitez

    Celebrating its 20th anniversary this year, Bo’s Coffee aims to open 100 stores in the Philippines.

    Recently Benitez was named global difference maker and high-impact entrepreneur by Endeavor Philippines, as he aims to make the company succeed in the global market, “bringing with him his pride for coffee, culture and country”.

    Benitez, who studied coffee preparation through seminars and conferences in the US, Europe and Asia, first opened an espresso bar at Ayala Center Cebu in 1996. He called his first standalone store ‘Coffee Club’. He later changed it to ‘Bo’s Coffee Club’, named after an Italian-American called ‘Bo’ at an exhibit in New Orleans. Benitez said Bo’s passion for coffee and commitment to quality helped shape the company culture.

    In 2001 a Cebu flagship store opened at Ayala Food & Entertainment Center and the first franchise store opened at SM City Davao. Bo’s Coffee expanded into Visayas and Luzon in the succeeding years.

    “Bo’s Coffee’s premium Philippine Coffee Origins are carefully-handpicked, single-origin beans that reflect the proud tradition of coffee growing in the Philippines. Each cup honors its source and heritage. Each cup offers great-tasting coffee from the motherland, as unique as the place from where it comes from,” says Benitez.

    “In terms of food, we offer a diverse menu of Filipino flavours such as longganisa from Vigan, smoked bangus from Sarangani. Our diverse menu, from our all-day breakfast to our dessert line, all aim to provide comfort to our sentimental taste buds, and highlight the unique flavors the Philippines has to offer,” he adds.

  • Hong Kong gets early taste of Hanwoo, Korean beef that rivals Kobe

    Hong Kong gets early taste of Hanwoo, Korean beef that rivals Kobe

    Since late last year, premium Korean beef, called Hanwoo, has been making its way onto menus in some Hong Kong restaurants, as the city is one of the first places allowed to import it. Hanwoo refers to cattle indigenous to Korea which are raised only in the country, unlike wagyu (Japanese beef), which is bred in countries outside Japan, including Australia and the United States.

    One of its biggest fans is Korean-American chef Judy Joo, whose restaurant Jinjuu in Lan Kwai Fong was one of the first in Hong Kong to serve it.

    “It’s similar to Kobe beef and wagyu, and there are different types of Hanwoo, depending on which farm you go to,” she says. “It’s basically coveted for its high marbling. Wagyu and Hanwoo of the same grade look similar. But Hanwoo has a rich texture and is deeply marbled so it has a sweeter taste.”

    She has visited farms that raise Hanwoo cattle, and reports the animals are “raised like humans”. “Some farmers give them beer,” Joo adds.

    Each farmer has his own secret recipe for the cattle’s feed mixture, which for the most part is made up of barley and mixed grains. Joo says many farmers include fermented pine needles in the feed.

    “It’s a healthy way for the cattle to get probiotics so they don’t need hormones,” she explains. “It’s a more organic way to raise them, and they don’t need to inject as much medicine so they are more healthy.”

    In addition to the organic approach to feeding Hanwoo cattle, Joo says they are free-range, grazing on grass, though there isn’t much land for pasture, as 70 per cent of Korea’s geography is mountainous. Joo says the central and southern parts of Korea are where cattle farms are located, with each one typically raising about 40 cattle at a time.

    She says the best cuts of Hanwoo beef are rib-eye, fillet and sirloin, and adds it can be more expensive than wagyu. Her restaurant recently introduced steak boards featuring Hanwoo and USDA beef that diners can cook on sizzling hot stones. The 200-gram marinated sirloin bulgogi is HK$680 and is grade 9, the highest quality available.

    But when it comes to taste, the chef-owner says it’s about personal preference. “Hanwoo beef is very popular in Korea and people can’t get enough of it. You just need to try it.”

    Elite Fresh Food Company is the first firm in Hong Kong to import Hanwoo beef. Associate director Andrew Lee Chi-ho says the company was in talks with officials in Korea for more than two years before it was allowed to bring the first shipment into Hong Kong last December.

    “It’s a very special breed because it takes a long time to get consistent cattle,” he explains. “It takes five to 10 generations, 15 to 30 years, to get consistent marbling, flavour and good structure.”

    Lee says until recently Korean beef was rarely exported because there is so much demand for it domestically. As a result, Hong Kong importers like himself have to pay a premium to buy Hanwoo beef.

    We can only get the parts that don’t sell well in Korea … But this works out for the Hong Kong market because those cuts are popular here

    Andrew Lee

    “We can only get the parts that don’t sell well in Korea [where they prefer short ribs], like rib-eye and sirloin. But this works out for the Hong Kong market because those cuts are popular here.”

    He says the cost of Hanwoo beef is about the same as Japanese-raised wagyu, selling at about HK$240 per 100 grams retail. When it comes to taste, Lee also seems partial to Korean beef.

    “They are two different products. Wagyu has highly intense marbling that is very fatty and melts in the mouth, but is oily and lacks a strong beef flavour. Hanwoo is very tender, has good marbling and has more beef flavour. It also has a wider application for other cuisines because of this,” Lee explains.

    For example, steaks are usually grilled to medium rare or medium for optimum taste. But Lee claims Hanwoo beef can even be cooked well done and it still tastes good. “Wagyu beef has a ratio of 70 per cent fat and 30 per cent meat, whereas with Hanwoo it’s about 50-50 or 60-40. American beef is more lean, with a maximum of 15 to 20 per cent fat.”

    Lee reports Elite Fresh Food’s first shipment of Hanwoo beef to Hong Kong totalled 700kg. Now it ships twice a month, bringing in 1.5 tonnes to 1.7 tonnes a month. It’s not a lot when you compare it to the seven to nine tonnes of wagyu the company imports each month.

    The Steak House Winebar + Grill at the InterContinental Hong Kong recently featured Hanwoo beef on its menu. Restaurant manager Franco Leung Wai-keung agrees with Lee’s assessment of Korean beef, saying that when the rib-eye or striploin is chargrilled, the fat drips off and tastes less oily than wagyu.

    “It’s in between wagyu [grade] A5 and US beef, but they don’t have as strong a beef taste as Hanwoo,” he says.

    Leung says overall feedback during a recent two-month promotion was mostly positive. He says the restaurant is already planning to put the premium Korean beef back on the menu soon.

    “They taste the quality,” he reports, adding Hanwoo is best complemented with more acidic Italian or Spanish wines.

    At the nearby Oyster & Wine Bar at the Sheraton Hong Kong Hotel & Towers, chef de cuisine Oscar Chow Kwok-ho says he first tried Hanwoo on a trip to Korea two years ago during a cooking competition.

    Chow says locals took him to a store that served the premium beef and he was deeply impressed by the taste and texture. He finally managed to get Hanwoo on the menu in February, and diners can have a starter of Hanwoo beef carpaccio, then a main course of either chargrilled sirloin or rib-eye.

    He reports that his guests enjoyed the Korean beef, as it is rare in the Hong Kong market. He says the price in the restaurant is reasonable when compared to other premium beef (HK$1,100 for Hanwoo versus HK$1,300 for wagyu).

    Six places in Hong Kong to get your hands on Hanwoo beef

    Oyster & Wine Bar

    18/F, Sheraton Hong Kong Hotel & Towers, 20 Nathan Road, Tsim Sha Tsui, tel: 2369 1111 ext 3145

    Mr Steak Café

    Shop 702, 7/F, New Town Plaza Phase 1, 18 Sha Tin Centre Street, Sha Tin, tel: 2691 6263

    Shop G03A, Maritime Square, 33 Tsing King Road, Tsing Yi, tel: 2449 9945

    Myung Ga

    Shop 2702, 27/F, iSquare, 63 Nathan Road, Tsim Sha Tsui, tel: 2369 1177

    Shop 1, 13/F, World Trade Centre, 280 Gloucester Road, Causeway Bay, tel: 2882 5056

    Jinjuu

    UG/F, California Tower, 32 D’Aguilar Street, Lan Kwai Fong, tel: 3755 4868

     

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  • Tim Hortons plans expansion into Southeast Asia starting with the Philippines

    Tim Hortons plans expansion into Southeast Asia starting with the Philippines

    People craving a jolt of caffeine in the Philippines may soon be able to order a double-double at their local Tim Hortons.

    Restaurant Brands International, the multinational owner and operator of Tim Hortons and Burger King, said Thursday it has partnered with a group of investors to establish a master franchise joint venture company to sell the fast-food chain’s coffee and doughnuts in the Southeast Asian country.

    RBI chose the Philippines for its first stop in Southeast Asia because the country has a strong economy and a fast-growing quick-service market, said CEO Daniel Schwartz.

    The Philippines also boasts “a population that has an affinity for coffee and baked goods,” Schwartz added, including those of Tim Hortons’s, the company determined after months of market research.

    RBI didn’t say how many shops it plans to open in the Philippines. But chief financial officer Joshua Kobza said, “We aim to be a leader in the market.”

    Kobza hinted Tim Hortons would aim to match the level of some of its rivals in the local market — many of which boast hundreds of restaurants in the country, he said.

    The stores will serve many of the same staples as Canadian locations, like Timbits and iced capps, as well as some surprises, he added.

    “You’ll have a mix of the kind of products that we know and love here in Canada and some new products.”

    But details about any new offerings likely won’t be divulged until the first Philippines location opens, which Kobza and Schwartz said will open as soon as possible.

    RBI views Tim Hortons’z expansion to the Philippines as a gateway into other markets within the sub-region and other parts of the continent, noted Schwartz.

    Since Tim Hortons and Burger King merged into RBI in late 2014, the company’s been focused on taking the master franchise joint venture model that’s proved successful for Burger King and applying it to help Tim Hortons grow globally.

    “We think it’s a great opportunity,” Schwartz said.

    More international expansion announcements are expected from the company in the future, but all Schwartz will say is, “Stay tuned.”

    The restaurant chain has 4,438 restaurants, not including its 411 limited-service kiosks, as of March 31, 2016, the company’s latest quarterly report said.

    According to Tim Hortons’s 2015 annual report (when it had 25 fewer locations), the majority of those stores are in Canada, with 14.7 per cent in the U.S. and 2.6 per cent in the Middle East.

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  • Hi Brunch Philippines to debut in Robinsons

    Hi Brunch Philippines to debut in Robinsons

    Expanding for the first time outside its home market of Korea, cafe chain Hi Brunch is set to make the Philippines its number three market.

    Korean food franchisor Sim Woo has partnered with Filipino-American entrepreneur Susan Barlin, for the Hi Brunch Philippines and Southeast Asia franchises. Barlin is a real estate executive who also owns a multi-level marketing business.

    Hi Brunch Philippines will offer porridge and desserts along with coffee.

    Formed in 2015, Sim’s holding company Midang FC already has 250 stores in Korea and two in Tokyo. The company is eyeing franchise stores Taipei, Taiwan, Kazakhstan, China, and Southeast Asia, particularly Singapore, Indonesia and Malaysia.

    Hi Brunch Philippines is set to open a store in Robinsons Galleria in two to three months.

    It will also open in Bonifacio Global City, Alabang, Tagaytay and Cebu. Barlin said the master franchise in the Philippines will open six company-owned stores among the 25 outlets planned for one year.

    Barlin said the food will be prepared in Korea and shipped frozen to the Philippines for cooking. Authentic Korean dessert bingsu (snow ice flakes topped with sweets) will also be offered at Hi Brunch.

    “We will not only import but we’ll make things here,” Sim said, adding that if food products are available in the Philippines, these may be locally sourced. For example, for the snow ice flakes, fresh Philippine mangoes are better than frozen, he said.

  • McDonald’s Singapore and Malaysia for sale

    McDonald’s Singapore and Malaysia for sale

    Franchise rights for 20 years for McDonald’s Singapore and Malaysia could fetch S$542.8 million (US$400 million).

    The rights have been put on the market as part of McDonald’s Corp’s international turnaround plan put in place by new CEO Steve Easterbrook last year. With a US$112 billion market value, the corporation is revamping its ownership models throughout Asia, including plans to offload its China, Hong Kong and South Korea master franchises.

    McDonald’s has adopted a “development licensee model” for Malaysia and Singapore, says a Singapore spokesman. It is negotiating with candidates “committed to helping accelerate growth and innovation in Malaysia and Singapore”.

    McDonald’s owns most of its outlets in Asia, and eventually aims to have 95 per cent of its restaurants in the region under local ownership.

    Singapore has more than 120 McDonald’s restaurants with about 9000 employees, while in
    Malaysia there are more than 250 restaurants.

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  • NYDC Vietnam closes last store

    NYDC Vietnam closes last store

    The last NYDC Vietnam dessert and cafe restaurant has closed its doors after months of struggling to stay viable.

    The chain sent its goodbyes to its customers via its Facebook page last Wednesday, promising to “return someday”.

    NYDC’s struggles first became apparent in May when it closed three stores in a row – Nguyen Trai, Cantavil, and Crescent stores in Ho Chi Minh City. It continued to operate its highest-profile store inside the Metropolitan Tower in the city’s CBD. However, after six months trying, finally they decided to close their last store.

    Two factors likely led to the demise of NYDC Vietnam: First, the increasing dominance of  local cafe chains such as The Coffee House, Phuc Long, Urban Station, Trung Nguyen, Kafe and Highlands, which offer affordable prices and comfortable spaces. The second is the more recent arrival of international chains, such as Starbucks. Before Starbucks arrived in Vietnam in 2012, NYDC’s main competitors were Gloria’s Jeans and Coffee Bean and Tea Leaf.

    Many foreign food chains have struggled to gain momentum in Vietnam market. Both Gloria’s Jeans and Coffee Bean and Tea Leaf had to close larger outlets about three years ago due to rising rentals. Burger King launched in 2012 with ambitious plans for about 60 stores within five years. It has recently closed several and as of February its network stood at just 16.

    Sean T Ngo, CEO of VF Franchise Consulting, said that even though Vietnam is one of the hottest franchising markets in Southeast Asia, the exit of NYDC from Vietnam clearly demonstrates the challenges that many foreign firms face when entering a developing market like Vietnam.

    “Clear differentiation and positioning from competitors and near perfect execution is required if any foreign brand is to do well in this market place.”

    Brought to Vietnam in 2009 by Singapore’s SUTL Group, NYDC used to be one of the most popular foreign cafe chains in HCMC. The first two outlets were opened in the center of the city, at Metropolitan tower and Now Zone shopping mall, followed by Vincom, Nguyen Trai, Cantavil, and Crescent mall stores. The original plan was to open 20 outlets in five years with more than US$300,000 investment reportedly required for each.

    Opposite to NYDC, SUTL has been successful with its investment in KFC, which now operates more than 140 stores across Vietnam.

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  • Alliance Group market-ready lamb packs to hit Chinese shelves

    Alliance Group market-ready lamb packs to hit Chinese shelves

     Alliance Group’s lamb packs for the Chinese retail market.
    Alliance Group’s new lamb range of market-ready retail packs will be launching in China next month.

    The co-branded lamb range will land in China’s retail and food service sectors as the co-operative and its in-market partner Grand Farm strengthen their close ties.

    The initial focus  will be on the upper end of the Chinese market in Beijing, Shanghai, Guangzhou, Shenzhen and Harbin The lamb will be available from eight retail chains boasting 200 selected outlets before being rolled out to other parts of the country.

    Alliance chief executive David Surveyor said the New Zealand-packed lamb was designed for the Chinese market and co-branded Pure South and Grand Farm.

    “It marks a major milestone in our vision to create new product forms and ranges that will be either produced from source or further processed in the market to meet the growing demands of China’s food service sector.”

    The regions were selected based on the higher buying power of their consumers, concentration of foreigners and higher economic activity, he said.

    “This initiative will help us build a deeper understanding of the supply and value chains and eventually secure the added value we are seeking in this market with a ‘packed-at-origin’ offering.”

    Alliance’s focus in China was to obtain more market value for its 5000 farmer-shareholders by understanding consumer tastes and improving its matching of products and markets, as well as investing more in new products and packaging, he said.

    In April, the co-operative signed an agreement with Grand Farm at a ceremony in China. The agreement, which signals further strategic co-operation between the pair, sets out a  plan to improve the returns and add value to both businesses.

    Grand Farm is the best known distributor and marketer of top quality red meat in northern China. The company owns 96 meat shops, operates 260 branded meat counters in selected hypermarkets and supplies over 1000 hypermarkets in China.

    Alliance has been working in China since the mid-1990s and is now the country’s largest exporter of New Zealand lamb to the country.

     

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  • Retail, food/beverage sales to rise in July: MOEA

    Retail, food/beverage sales to rise in July: MOEA

    On the back of rising demand for the upcoming Ghost Festival, the local retail sector is expected to see sales growth in July, at a time when many retailers have aggressively launched promotional campaigns, according to the Ministry of Economic Affairs (MOEA).

    In addition, continued high temperatures have boosted demand for beverages in the local market, the MOEA said, and this trend is expected to give an additional boost to the local retail sector, as well as the food and beverage sector, in July.

    The forecast was made by the ministry after it released data Friday showing that Taiwan’s retail sales for June stood at NT$335.8 billion (US$10.49 billion), up 0.2 percent from a month earlier and up 0.5 percent from a year earlier.

    The statistics indicate that revenue in the local food and beverage sector hit NT$36.3 billion in June, up 1.9 percent from a year earlier but down 3.0 percent from a month earlier.

    The Ghost Festival (中元節), the 15th day of the seventh month of the lunar calendar, will fall on Aug. 17 this year.

    Local people usually buy foods and other necessities ahead of the festival in preparation for the folkloric rituals.

    In addition, the Taipei Multi-Media Show, which was staged July 1 through July 4, was expected to boost sales of 3C products and eventually raise revenue of the local retail sector, the MOEA said.

    The MOEA said that the hot weather is expected to prompt more and more consumers to buy beverages to keep themselves cool, while the current summer vacation is a peak season for local people to travel, which is expected to boost sales for the local restaurant businesses.

    In June, sales posted by department stores, supermarkets, convenience stores and hypermarkets in the local retain sector gained 3.2 percent, 5.6 percent, 3.0 percent and 5.5 percent, respectively, from a year earlier, while sales of the auto/motorcycle business rose 3.5 percent from a year earlier, the MOEA data shows.

    However, sales of the information and home appliance business in the local retail sector fell 5.6 percent year-on-year in June, the data indicated.

    During the month, sales of the restaurant and beverage businesses in Taiwan rose 2.2 percent and 0.8 percent, respectively, from a year earlier, the MOEA said.

    The MOEA said that sales posted by the local wholesale sector for June gained 3.6 percent from a year earlier to NT$805.8 billion.

    In the first six months of this year, sales of the local retail and food/beverage sectors rose 2.0 percent and 2.6 percent, respectively, from a year earlier, while revenue posted by the wholesale sector fell 5.4 percent year-on-year, the MOEA said.

     

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