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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.

  • Lampung exports of instant coffee growing

    Lampung exports of instant coffee growing

    Lampung has recorded growing exports of instant coffee reaching 63.2 tons in November, 2015.

    “Exports of instant coffee has continued from month to month,” head of the provincial trade office Ferynia said here on Saturday without saying exports in the previous months.

    Lampung is a big producer of robusta coffee.

    Instant coffee from Lampung has been exported to various countries such as Vietnam, which is the worlds largest producer of robusta coffee, and Singapore.

    Exports, however, are small in comparison with domestic consumption.

    The export prospects are still encouraging, Ferynia said, adding, Lampung is aggressive in launching export promotion in a number of other countries by holding exhibitions.

    He said Lampung has managed to maintain strong foothold for its instant coffee in export markets.

    “Demand is still high and the price is good for Lampung product of instant coffee in international markets,” he said.

    The production center for instant coffee in Lampung is Bandarlampung, which has a production capacity of around 8,000 tons of the commodity per year.

    “Sales of instant coffee in the country average 50 to 100 tons per months,” Ferynia said.

    Lampung has 163,837 hectares of coffee plantations with production averaging 140,000 tons of coffee beans per year.

    Indonesia is the fourth largest coffee producer in the world and the second largest in robusta coffee production.

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  • Starbucks Will Be Bigger In China Than In the US

    Starbucks Will Be Bigger In China Than In the US

     

    The future of Starbucks is in China. The company opened nearly 1,000 new stores in the country over the past year, bringing the total to about 2,500 stores. It’s still opening more than one store per day, and expects to open 5,000 stores by 2021.

    At the company’s investor day in December, CEO Howard Schultz said he expects profits in China to exceed those in the United States eventually.

    Starbucks China CEO Belinda Wong expects several factors to contribute to the coffee company’s ability to grow revenue and operating income threefold over the next five years: the growing middle class and their increasing demand for coffee, global improvements to Starbucks’ core retail business, and digital partnerships with local companies like Tencent.

    A market that will be double the size of America in six years

    China’s middle-class growth isn’t slowing down. Over the last decade, the number of people considered middle class in China grew from 66 million to 300 million, according to reports collected by Wong. By 2022, Starbucks expects China’s middle class to double in size again to 600 million. For reference, the entire United States has about 324 million people.

    While the growth of China’s middle class is important, a bigger driving factor may be that Chinese are still developing a taste for coffee. As such, the demand for Starbucks will grow even faster than the rapidly expanding middle class.

    Over the next five years, the demand for specialty coffee in China is expected to grow at a rate of 15% per year, according to Euromonitor. What’s more, Starbucks already holds the lead in market share.

    More reasons to visit a Starbucks store

    One of the biggest organic drivers of store visits is Starbucks’ loyalty program, My Starbucks Rewards. Wong says new signups for MSR increased 63% per year from 2013 to 2016. Gold membership increased 53% per year. Importantly, members are “very intentional about their path to gold,” and as a result MSR members visit stores more frequently.

    Additionally, Starbucks plans to invest in new reasons to visit Starbucks. The company plans to expand its lunch menu in all of its stores globally, introducing things like soup and other food items. It expects lunchtime revenue to double over the next five years.

    Starbucks also has an opportunity to capitalize on Teavana in China, which has a huge tea culture. Incorporating more Teavana products into its stores could bring in customers who aren’t particularly fond of coffee, but still want the experience Starbucks offers.

    Lastly, Starbucks is expanding its consumer goods business in China. It just released its bottled Frappuccino nationwide. That could give potential customers a taste for Starbucks, inviting them to visit a store.

    Partnering with digital leaders

    One of the biggest announcements Starbucks made regarding its operations in China is its new digital partnership with WeChat, the messaging app owned by Tencent. WeChat has 864 million monthly active users, and its built-in wallet is often used to pay for goods in stores. Starbucks shoppers can now use WeChat to pay for their food and drink orders in store as well.

    Starbucks loses about 5% to 10% of sales in China due to long lines where customers are unable to pay fast enough, according to Shaun Rein, managing director of China Market Research Group. The partnership with WeChat should help speed up the checkout process, driving more sales.

    Starting early next year, WeChat users will be able to send each other Starbucks drink certificates or gift cards through the app. The service will operate in the same way as WeChat’s digital red envelopes, which allow users to send each other money. It’s one of the most popular functions of WeChat in China, and Starbucks will be smart to get the service launched before Chinese New Year, when red envelopes peak. The move provides a social marketing benefit to Starbucks as well, as it aims to attract new customers to its stores.

    The overall opportunity for Starbucks in China is huge. The company’s efforts to capitalize on the growing demand for specialty coffee from the middle class should fuel growth for many more years. Add in the company’s global efforts to expand into other parts of the day, plus its willingness to work with native digital leaders like Tencent, and Starbucks’ Chinese operations could surpass the U.S. sooner rather than later.

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  • Study reveals Asian dining spending trends

    Study reveals Asian dining spending trends

    One in three millennials in Asia are eating at fine dining restaurants at least once a month – more often than those aged over 30.

    The surprise finding is one of a list of revelations uncovered by a MasterCard survey of Asian dining trends away from home. It featured consumers in 17 Asia Pacific markets: Australia, Bangladesh, China, Hong Kong, India, Indonesia, Japan, Malaysia, Myanmar, New Zealand, Philippines, Singapore, South Korea, Sri Lanka, Taiwan, Thailand and Vietnam.

    The most frequent fine-diners in Asia Pacific are millennials (18-29 year olds) from China – on average they visit more expensive establishments two or three times a month. This is higher than the average for millennials across the region and higher than any other age group.

    When choosing where to eat, consumers in Asia Pacific still prefer to rely on word of mouth and recommendations from friends and family (50 per cent). This was applicable for all consumers, regardless of age group, with even millennials trusting word of mouth recommendations (52 per cent) more than online reviews (38 per cent).

    This is despite the fact that more than a third of millennials (36 per cent) post comments and reviews of their dining experiences online. This is especially true of Chinese (61 per cent) and Thai (52 per cent) millennials, where more than half of the young people polled regularly post reviews after a meal.

    Beyond millennials, people in Thailand (39 per cent) and China (30 per cent) are also the most likely to spend more on dining over the next six months with around one in three indicating they plan to eat at more expensive establishments.

    But while consumers may be enjoying fine dining, they are still cost conscious. Sixty-four per cent of consumers in Asia Pacific regularly check for discounts or dining deals from coupon websites, mobile applications or credit card promotions. Sixty-eight per cent of millennials regularly look out for deals before choosing a place to eat.

    Eric Schneider, regional head, Asia Pacific, with MasterCard Advisors, said Asia has always had a strong dining out culture and so it is not surprising that affluent millennials in the region are ‘foodies,’ with many sharing their dining experiences on social media and posting reviews online.

    “While the survey has shown that people are increasingly moving from the hawker centres and into restaurants, young people are still cost conscious, taking a practical and savvy approach by looking for discounts and deals. Young people also still rely on word of mouth recommendations, despite many posting online reviews of dining spots. As Asia’s economies continue to grow, and with technology and social media revolutionizing the dining experience, people will increasingly demand top quality experiences when dining out,” he said.

    Other findings from the survey included:

    • Overall, consumers in Asia Pacific are not looking to make any significant changes to their dining out plans with 61 per cent of all consumers indicating they will look to eat out at the same frequency in the next six months. Twenty per cent plan to eat out more and 19 per cent plan to eat out less in the next six months.
    • The most popular dining option for consumers in Asia Pacific are mid-range restaurants and cafes, followed by fast food outlets and then hawker centres and food courts.
    • Consumers in the Philippines (44 per cent) are looking to tighten their belts with close to one in two planning to eat at less expensive venues in the next six months. Forty-nine per cent also plan to eat out less regularly.
    • A significant proportion of older consumers are going online to check for dining discounts whether on coupon websites/applications or credit card promotions. More than one-third of consumers aged 55 years old and above (36 per cent) indicated they regularly do so before deciding on a dining option.
    • Consumers in China (58 per cent), Taiwan (44 per cent) and Thailand (44 per cent) are the most likely to book dining deals on coupon sites or coupon applications; while consumers in Bangladesh (1 per cent) and Indonesia (11 per cent) were least likely to do so.
    • Diners in Thailand (60 per cent) and China (57 per cent) are most likely to post comments or reviews on social networking sites like Facebook and Twitter with about one in two respondents in these markets reporting that they regularly post comments online following their dining experience.

    The results are based on interviews with 8698 individuals aged 18 to 64 years-old.

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  • The McDonald’s of the future has opened in Hong Kong

    The McDonald’s of the future has opened in Hong Kong

    Neutral, modern look … inside the McDonald’s Next store in Hong Kong. With mood lighting and a much more modern menu, this restaurant has been hailed as the McDonald’s of the future.

    The fast food chain has opened a new concept store in Hong Kong located near Admiralty Station known as McDonald’s Next.

    The new eatery has been designed by Landini Associates, an Australian-based company, and is said to be “an experiment in non-design” with more neutral colour tones.

    It has moved away from the former design of McDonald’s, which was historically characterised by bold and bright red and yellow colours.

    Instead, the new concept store features concrete tables where diners can enjoy their meals in booths, and on bar stools with communal bench tops.

    “The colourful graphic environments, that became a signature for McDonald’s globally, are now replaced with a simpler, quieter and more classic approach,” Landini Associates posted on Instagram.

    “An experiment in ‘No Design’, the intention is to hero the food, the service and the people who come to enjoy it.”

    New way to dine ... what the new McDonald’s store looks like. Picture: Landini Associates website

    New way to dine … what the new McDonald’s store looks like. 

    The new design has also transformed the kitchen, which is now open for customers to see.

    Staff uniforms have been revamped and the walls are plain and covered in simple graphics including a white outline of a burger.

    Open kitchen ... customers can see food being made. Picture: Landini Associates website

    Open kitchen … customers can see food being made. 

    There are also multiple ways that customers can order a meal. They can order through a member of staff at a counter, use a computerised kiosk, or order at their table.

    The restaurant has the popular Create Your Taste option, where customers can build their own burgers.

    There is also a bar where salads, desserts and drinks can be bought.

    Customers can also access wireless charging for their devices including laptops and smartphones at the tables inside the eatery.

    News of the new concept store being introduced comes after the world’s biggest Macca’s — located in Orlando, America — is set to close its doors in 2016.

    A new 19,000 square-foot McDonald’s building will replace the current premises that was built in 1976 and features a bowling alley.

    The new building will feature a two-lane drive through and a self-order kiosk for customers to build their own burgers. It will also boast an exclusive open design pizza and pasta area, and a wood-fire oven.

    The restaurant will continue to sell the famous McDonald’s items, as well as its popular gourmet options.

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  • Digital Push In China: Can This Impact Starbucks’ Revenues In The Region?

    Digital Push In China: Can This Impact Starbucks’ Revenues In The Region?

    Recently, Starbucks Corporation China announced the opening of its first online store in China’s popular ecommerce site, Tmall, which will feature unique and specially designed e-cards, Starbucks cards and coffee vouchers providing an easy gifting option. [].While this initiative is part of the company’s increased focus on digital presence, it could tap into the significant growth of retail ecommerce in China. According to eMarketer, retail ecommerce sales in China are projected to grow at more than 30% each year, over the next three years and reach more than $1500 billion by 2018. []. While mobile is expected to account for nearly half of the total ecommerce sales in China in 2015, this figure is expected to increase to 70% by 2019. []. We believe Starbucks’ ecommerce initiative in China should benefit from the growing internet users in the region and the online shopping habits of Chinese consumers.

    More Than 16% Of Total Retail Sales In China Through Ecommerce By 2018

    It is estimated that in 2015, ecommerce sales will account for nearly 7% of the total retail sales in the U.S., while this number is much higher at 12% for China. By 2018, it is estimated that these figures will increase to nearly 9% for the U.S. and more than 16% for China.

    183110

    Given the preference of Chinese consumers towards online shopping, we believe Starbucks’ initiative to expand its digital presence in the region is the right strategy.  China is a growth market for Starbucks. For the fiscal year 2015, comparable store sales in the China Asia Pacific region grew by 9% compared to a 7% number for the Americas. This growth was driven by a 8% increase in traffic while the corresponding number for Americas was 3%. []. The company plans to double its store count in the China Asia Pacific region to 10,000 stores in the next five years, with the store account in China projected to be 3,400 by the end of 2019. As the Chinese economy shifts from an export focussed industrial region to one relying on services and domestic demand, we believe Starbucks will benefit from this trend with the urban middle class increasing and becoming well off. With aggressive expansion plans in China, which the company expects will be its biggest international market; we believe the ecommerce entry could drive growth in the region and also provide a boost to the Starbucks loyalty program.

     

  • Isetan Thailand unveils Washoku Gallery food concept

    Isetan Thailand unveils Washoku Gallery food concept

    Isetan Thailand has converted its fifth floor into a food concept called Washoku Gallery, which opens today (December 18).

    Washoku Gallery will, in keeping with the department store’s heritage, feature food products imported from Japan. Japanese food and culture are broadly liked by Thailand’s urban consumers and Isetan wants to tap into the growing demand.

    Isetan Washoku 4

    The Isetan Thailand department store is located in CentralWorld in downtown Bangkok.

    “The Thai retail market has undergone drastic changes since Isetan Thailand opened in 1992, and numerous Thai customers have said they want to see the same things at the store as at Isetan stores in Japan,” a spokesman for the retailer said in a statement.

    Isetan Washoku 1

    “At Washoku Gallery, Isetan offers goods and services so that customers can enjoy Japanese culinary culture. Isetan will also minimise price differences between products in Japan and those in Thailand as much as possible so that as many customers as possible can feel ‘this is Japan’.”

    Most of the products on sale have been introduced to Thailand for the first time. There are also nine Japanese-Western food brands, four Japanese bakery brands, 10 Western bakery brands and a Japanese Food Court with seven Japanese food brands.

    Isetan Washoku 2

    Isetan will work with Japanese food companies to bring experts to Bangkok to demonstrate their artisanship to customers. Tea masters will visit the store when newly harvested tea leaves are put on sale, and sake-brewing masters from rice wine breweries will be invited from all over Japan. Sashimi experts will slice freshly imported fish from Japan as customers look on.

    Isetan Washoku

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Said Isetan Thailand president Takaki Akune: “The newly remodelled floor, Washoku Gallery, is unique – only a Japanese department store can offer [it]. I’m confident that at Washoku Gallery, Thai customers will feel a sense of satisfaction they have never experienced. ‘This is Japan’ is a concept that Mitsukoshi Isetan Holdings recognises as part of its corporate strategy.

    “The whole group uses this concept to present the beauty of Japan to the world, from products to sales and services,” he said.

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  • Does arrival of Michelin Guide reflect a more mature dining scene in Singapore?

    Does arrival of Michelin Guide reflect a more mature dining scene in Singapore?

    The Singapore Michelin Guide will be launched next year. The confirmation of a Singapore Michelin Guide as early as next year topped what has been an exciting 2015 for a nation of food lovers.

    Local fare has never been more openly celebrated, both here and abroad (what with Anthony Bourdain’s plans to bring Asian street food to New York and the supposed new chicken rice war brewing in Shanghai); and local chefs and bartenders are continuing to rake in top honours on the global stage.

    So what’s cooking for next year? The warm reception to local start-ups this year could mean that we can see more permanent brick-and-mortar outlets emulating the likes of Bird Bird House of Thai Chicken, Park Bench Deli, Paper Crane and L’eclair Patisserie. More independent restaurants are expected to woo people in the heartlands next year — even if these will be of a smaller scale, thanks to the ongoing labour crunch, said Konstantino Blokbergen, director of Singapore-based hospitality and lifestyle consulting company Gastro-Sense.

    But the arrival of the world’s most recognised dining guide is on everyone’s lips, although, whether its presence marks a coming of age for the local dining scene is up for discussion.

    “To see… Michelin penetrate the Singapore market before any other country in South-east Asia is definitely a sign of achievement in recognition and proof of our local dining scene’s maturity,” said Blokbergen.

    It will further reinforce Singapore’s standing as the regional hub for culinary excellence, added Ranita Sundramoorthy, director, Attractions, Dining and Retail, Singapore Tourism Board, who said the guide’s arrival will “encourage continuous culinary innovation and excellence among Singapore players” as well as the growth of gastro-tourism.

    While Mod-Sin cuisine pioneer Willin Low said that the Singaporean diner is far from naive when it comes to the best places to dine, other players adopted a more cautious stance.

    Said Edina Hong-Stroobant, marketing director of Emmanuel Stroobant Group: “I think it’s a budding scene. The Michelin Guide will hopefully reinforce the fact that Rome was not built in a day. One of the reasons the Japanese have a higher number of Michelin restaurants is their culture — it is all about discipline and in-depth knowledge; I think Michelin will help us achieve this maturity … but not yet.”

    Les Amis Group’s Raymond Lim predicted only four restaurants earning a coveted three-star rating. “Maturity doesn’t happen overnight, it will take at least five to 10 years. Yes, Singapore is ready (for the guide) but a market doesn’t transform so much within a year,” he said, adding that the Michelin Guide is not an award but a guidebook to the best restaurants with the best value.

    And while we’ve grown more appreciative of the value our dining scene purveys, there is clearly quite a bit of growing up left to do, before, as Low put it, “the day consumers are willing to pay the same price for a hand made soon kueh as they would for a macaron or cupcake”.

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  • Guinness goes alcohol-free in Indonesia

    Guinness goes alcohol-free in Indonesia

    Diageo is still selling its regular brew in large supermarkets and restaurants where sales have not been curbed, but has invested around $1m thus far to launch Guinness Zero and is planning a new facility to produce the drink locally.

    “We already had plans to enter the zero-alcohol beer market,” said Graeme Harlow, managing director of Diageo. “After the ban came in, essentially it made it even more important.”

    UK-based Diageo has around 15 per cent of the Indonesian beer market, which until last year was the world’s fifth-biggest market for Guinness with annual sales of around 400,000 hectolitres.

    Since the ban, sales of Guinness and Diageo’s other alcoholic beverages have fallen 40 per cent year-on-year, said Mr Harlow, as the number of outlets across the archipelago carrying the beer has shrunk from around 70,000 to just 40,000.

    The company blamed the new Indonesia restrictions as it reported a 28 per cent decline in net sales in Southeast Asia for the year that ended in June, even as Asia Pacific sales rose 64 per cent year on year to £2.2bn.

    Guinness Zero, marketed with the tagline, “bold taste, zero alcohol”, is aimed at much the same consumers as the regular Guinness brew — for instance, men looking for a “masculine” drink while avoiding alcohol in a society where drinking is often taboo, said Mr Harlow.

    Diageo has introduced alcohol-free drinks under other names elsewhere, as Kaliber in the UK and Malta in Nigeria, but its aim in Indonesia is to keep the Guinness label prominent in popular minimarkets.

    “We wanted it to be Guinness-branded and we wanted the product to be distinctively Guinness,” Mr Harlow said. He said there are no plans to roll out Guinness Zero beyond Indonesia.

    Diageo’s shift brings it into line with Indonesia’s other major beer producer, Multi Bintang — majority-owned by Dutch brewer Heineken — which already sells two popular alcohol-free drinks.

    The UK group is aiming to capture 10 per cent of Indonesia’s 150,000 hectolitre non-alcoholic beer market within two years, from around 7 per cent now, said Mr Harlow.

    The most immediate hurdle for the world’s largest distiller is the high production cost of the zero-alcohol alternative, which sells for half the price of a can of regular Guinness at Rp9,000 ($0.65).

    Diageo is importing Guinness Zero from Ireland, paying around 10 per cent in duties as well as expensive transportation costs, until it has its new production facility on the island of Bali up and running in a few months.

    But it also faces a hard sell countering Multi Bintang’s Bintang Zero, which with its light and lemony flavour is the country’s favoured zero-alcohol beer.

    Local consumers like Abi Dwi Natadipura, 20, say the distinctive bitter Guinness flavour of hops, malt and barley remain an acquired taste for Indonesians.

    “I have seen Guinness Zero in cans but I’ve never tried it,” he said, while shopping at the Circle K minimart in central Jakarta. “I guess the taste would be more or less the same as regular Guinness — and I’m not interested.”

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  • Mr Churro Singapore opens at Ion Orchard

    Mr Churro Singapore opens at Ion Orchard

    Mr Churro Singapore opens officially at Ion Orchard shopping mall today, (December 18).

    Churros are a fried-dough pastry based snack, usually sweet, popular in Spain, France, the Philippines, Portugal and the Southwestern US. In Spain, churros can either be thin (and sometimes knotted) or long and thick. They are normally eaten for breakfast dipped in champurrado, hot chocolate or cafe con leche.

    Mr Churro is a Korean-founded chain which describes itself as “an artisanal churros kiosk”. It describes the new Ion Orchard store as a “flagship outlet”.

    Mr Churro Singapore

    The kiosk has been trading for several weeks in preparation for its formal opening.

    Mr Churro is a franchised business and Singapore is believed to be one of its first markets outside Korea.

    Mr Churro

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  • Chinese imports of UHT milk continue to grow

    Chinese imports of UHT milk continue to grow

    Imports of liquid milk into China are growing with European countries successfully tapping into the market, according to AHDB dairy.

    China is expected to import 350,000T of liquid milk in 2015, up nearly a tenth from last year and equalling its Whole Milk Powder imports, according to the USDA.

    The AHDB says two-thirds of China’s liquid imports came from the EU in January-September.

    “Prices appear to be supported by strong demand for imported liquid milk in China. Chinese retail prices for imported brands of ultra-heat treated milk (UHT) are nearly 50% higher than the average UK UHT price.

    “Consumer confidence in the safety of imports is reportedly helping drive growing UHT sales, which demonstrates the value of using branding to target consumer needs within the right markets.

    “Chinese retail prices for imported brands of ultra-heat treated milk (UHT) are nearly 50% higher than the average EU UHT price, it says.

    According to the AHDB, consumer confidence in the safety of imports is reportedly helping drive growing UHT sales, which demonstrates the value of using branding to target consumer needs within the right markets.

    The number of potential consumers is also increasing as UHT is becoming more widely available in China’s smaller cities.

    “Online sales platforms are performing strongly, providing easy access and home delivery to more shoppers at prices that are competitive against powdered milk alternatives,” it says.

    The AHDB says China’s imported UHT consumption is expected to continue to grow off the back of these trends.

    “From here the challenge is to stay in favour with Chinese consumers, which means being price competitive and continuing to build a reputation for quality and safety,” it says.

    Both Glanbia and Lakeland Dairies have confirmed sustained growth in UHT milk sales to China and South East Asia as a whole.

    “There is a strong market for both plain and unflavoured milks in China,” said Lakeland CEO Michael Hanley.

    And this demand will continue to grow at a steady rate. Our products have a shelf life of between six and nine months. We export directly from Ireland to China.

    “Lakeland has a strong presence on the ground in that market. This has allowed us develop a good working relationship with distributors.”

    Glanbia launched its Avonmore UHT brand in China 12 months ago with 1L packs reported to be selling for the equivalent of €3.50 in retail outlets.

    “Sales have taken off at a steady rate,” a company spokesman said.

    “Our aim is to target UHT sales growth in both China and South East Asia as a whole. This will be done on the back of the Avonmore brand and own-label contract arrangements with distributors.”

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  • Starbucks volunteers joined 500 middle and high school students

    Recently, Starbucks volunteers joined 500 middle and high school students for the Youth Skill Development and Food Sustainability Project in partnership with the Books for Children Foundation. The event took place at the Bumrung-Raviwan Wittaya School, which promotes healthy food and living, grows vegetables for school and home meals, and sells leftover crops to student families. Combined, 330 volunteer hours impacted nearly 5,000 students and their families, along with others in the community.

    “At Starbucks, our long-term commitment is to make a positive and sustainable change in the areas of environment, society and economy,” said Murray Darling, managing director of Starbucks Coffee Thailand. “The community event allowed us to reaffirm the company’s long-term commitment to local communities.”

    For part of the day, students practiced project planning, leadership and communications skills during a food sustainability project. Students and volunteers built nursery shelves for vegetables, created an organic shade plot for crops and repaired the pier for a small fish farm.

    The majority of the community project focused on skills development through an English conversation class. Starbucks Thailand partners helped students hone their English-speaking skills through songs and word games.

    Starbucks volunteers also read stories to a kindergarten class with Ruangsakdi Pinprateep, managing director of the Books for Children Foundation and author of “Ping Pong, Will You Come with the Bear.” This children’s book was funded by a portion of sales from Starbucks Thailand Barista Bears.

    “It was such an honor for Starbucks to join us in service,” said Naiyana Aua-amnueychai, director of Bumrung-Raviwan Wittaya School. “We place a great deal of emphasis on English skills development and food sustainability at our school and Starbucks volunteers helped our teachers and students in these areas. We are pleased that Starbucks and our school share the same goal to contribute back to our society.”

    Starbucks Thailand has collaborated with Books for Children since 2005. Together, they have collected more than 400,000 books through an annual Christmas book drive and completed a library renovation at Silapadech community. In addition, they completed the Bookstart for Intellectual Disability Children’s Project at Rajanukul Institute and renovated the Wat Kla Cha-um School library and playground.

    “By working with Books for Children for the past 10 years, we have delivered educational opportunities to both public and private organizations nationwide,” said Sumonpin Jotikabukkana, marketing and communications director of Starbucks Coffee Thailand. “We realize that literacy is an essential element for children’s development and we aim to do our best to continue to promote and support these areas for Thai children in every sector of the society.”

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  • Cafe de Coral Group plans 20 new restaurants

    Cafe de Coral Group plans 20 new restaurants

    Quick Service Restaurant giant Cafe de Coral Group says it plans to open at least 20 new outlets in Hong Kong in the current financial year as it seeks to revive profit growth.

    The company this week revealed a three per cent increase in sales to HK$3.73 billion in the first half of the year, but a 14.7 per cent decline in profit to $207 million.

    “Seizing the opportunity of a softer leasing market, our Cafe de Coral and Super Super Congee & Noodles chains will be more proactive in further expanding its network,” the company said in its stock exchange filing.

    “Our team has been working on building greater network for our QSR platform with opening more than 20 shops in FY2015/16. We will also steer our current and new QSR concepts to

    further drive a bigger market share in this segment. Lifestyle cafe kiosk Just About Food and new innovative take-away concepts in key commercial hubs are tailored to target the needs of busy working crowds. These new QSR concepts have also led us to higher efficiency in the backdrop of high rental cost and persistent labour shortage.”

    Cafe de Coral Group’s QSR business in Hong Kong recorded a healthy turnover growth during the first half.

    “Performance of our fast casual and casual dining business was, however, held back by the significant investment we ploughed in to support our continual expansion in this segment. The group’s overall performance for the period has, to some extent, reflected a downturn in retail sentiments, driven by the weakening economy. Some of the group’s restaurants in the major shopping precincts saw a slow recovery in the aftermath of the community disruptions since the last quarter of 2014.”

    Despite the prevailing challenges, the group’s Hong Kong operations recorded turnover growth of four per cent to $3.12 billion. The Café de Coral chain saw its sales from comparable stores increase four per cent from the same period last year. The Super Super Congee & Noodles chain’s sales grew three per cent.

    In the fast casual and casual dining sector, Oliver’s Super Sandwiches continued to generate positive comparable store sales growth.

    “The Spaghetti House and Spaghetti 360˚, despite being affected by the temporarily weakened customer spending during the period, seized the opportunity to rejuvenate and strengthen our presence in the Italian dining sub-sector with The Spaghetti House re-launching its flagship store in Cityplaza, Hong Kong.

    “Shanghai Lao Lao and Mixian Sense, our home-grown brands that underscore the group’s diversification strategy, reported an encouraging performance. During the period of review, both chains continued their trajectories of steady growth and reinforced our solid leap into the Chinese dining sub-sector.

    Leveraging on the franchising model in our Japanese and Korean dining sub-sector, The Cup and Don Don Tei restaurants have opened in Hong Kong.

    Mainland China ‘flat’

    In Mainland China, Cafe de Coral’s fast food business growth was flat compared with last year and its casual dining business saw a steeper decline, “due to the rising tide of consumer reluctance to spend on higher priced meals”.

    “We made the deliberate move to slow down our growth in scale and pace in the country.

    “A balanced business portfolio with the right mix of our QSR, fast casual and casual dining and Mainland platforms will provide us with a greater room for expansion – a cornerstone of sustainable growth for the Cafe de Coral Group,” the company said.

    “Business in Mainland China has remained stagnant and consumption patterns are changing. Aware of the market deteriorations, the group has carefully gauged local consumption behavior, with a prudent approach towards operating its business there, primarily the Cafe de Coral and The Spaghetti House chains. We have deliberately adjusted our expansion pace and consolidated our operations, closing underperforming stores as well as strengthening our infrastructures, systems and teams in pursuit of a viable, future-oriented growth strategy.”

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  • Brown Forman rolls out Jack Daniels and Sinatra promotions

    Brown Forman rolls out Jack Daniels and Sinatra promotions

    Brown-Forman Travel Retail has rolled out a series of promotions worldwide touting the relationship between Frank Sinatra and Jack Daniel’s and commemorating what would have been the singer’s 100th birthday.

    Activities include high-profile Sinatra and Jack Daniels promotions in 26 airports worldwide along with social media support including Facebook and Twitter feeds (#ToastSinatra).

    Brown-Forman Travel Retail began its Sinatra/Jack Daniel’s partnership with the launch of Jack Daniel’s Sinatra Select at the TFWA show in Cannes in 2012.  Since then, the Kentucky-based spirits producer has executed promotions and displays in airports and other channels around the globe.  On December 12, a day before what would have been Sinatra’s 100th birthday, Delta Air Lines served tastings of Jack Daniel’s Sinatra Century on first class flights between New York John F Kennedy and Los Angeles International airport. Throughout December, the signature cocktail on all Delta Flights will be “Frank’s Way” featuring Jack Daniel’s Old No. 7, ice and a splash of water.

    Jack Daniel’s Sinatra Century was developed in collaboration with the Sinatra family to celebrate the day Frank would have turned 100 years old.   The high-end product is drawn from a rare selection of only 100 barrels hand-picked by Brown-Forman’s Master Distiller.  This rare 100 proof whiskey gains its rich oak character and smooth delicate finish from specially crafted, grooved “Sinatra barrels”.

    Along with the whiskey, is a never before released concert from Sinatra at the Sands in 1966 and a commemorative book wrapped up in a luxury gift-pack.  Only a limited number of bottles of Sinatra Century are available in travel- retail. While prices vary from market-to-market, the suggested retail price is $450.

    Finally, there is the Jack Daniel’s Sinatra Family Reserve. Only 15 bottles of this high-end product were created with a portion going to the family.  The product comes with a special signed letter from Frank Sinatra’s children and each bottle is individually numbered and comes with a commemorative plaque.

    At $1,500 per bottle, this is the most exclusive Jack Daniel’s whiskey ever sold and is only available for sale in travel retail at Hong Kong, Sydney, Munich, Atlanta, Heathrow, Singapore Changi, Los Angeels International and Amsterdam Schiphol.

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  • Supermarkets, restaurants worldwide admit to using slave labour-processed seafood

    Supermarkets, restaurants worldwide admit to using slave labour-processed seafood

    A large-scale investigation spanning multiple continents has revealed that top seafood retailers and restaurants around the world were using products that were tainted with forced slave labour, originating from Thailand’s seafood peeling factories.

    The Gig Peeling Factory on the outskirts of Bangkok houses horrors made of nightmares. Here, the forced labourers work for 16 hours for little or no pay fearing violence from the overseers.

    An Associated Press investigation revealed that Thai Union, the largest seafood supplier, employs the Gig Peeling Factory where a hundred Burmese people, including children, are kept under lock and key and forced to work for hours without end with their hands in cold water, tearing and shedding at the heads and tails of the shrimps.

    Woolworths, Coles and Aldi, Australia’s top retail grocery chains, have all said that they use Thai Union as suppliers for their retail stores.

    “We will investigate this further with our supplier and seek advice from our NGO partners,” quoted Woolworths as saying.

    Australian retailer, IGA Supermarkets’s supplier Metcash confirmed that it uses Thai Union as well.

    “Some of our other locally based seafood suppliers may purchase prawns from Thai Union as they are one of the largest seafood suppliers in the world,” a Metcash spokesman said.

    In the US, the Red Lobster and Olive Garden, both restaurant chains as well as retail chains like Wal-Mart, Kroger, Whole Foods, Dollar General and Petco, have all confirmed using the Thai seafood supplier.

    The seafood produce from Gig Peeling Factory gets mixed with products from other suppliers making it impossible to tell between tainted and ethically produced farm products.

    According to UN and US standards, the whole produce then becomes tainted.

    “They didn’t let us rest,” said 16-year-old Eae Hpaw, 16, a labourer at the factory, whose arms were lacerated with shrimp-related infections and allergies. “We stopped working around seven in the evening. We would take a shower and sleep. Then we would start again around three in the morning.”

    “I was shocked after working there a while, and I realised there was no way out,” said Tin Nyo Win, 22. He and his wife were only paid US $4 per day for peeling 175 pounds of shrimp.

    Europe and Asia, has been similarly importing products from Thai Union, the AP investigation revealed. Germany, Italy, England and Ireland were able to find products from Thailand in grocery stores there.

    “As the world’s largest seafood restaurant, we know the important role we play in setting and ensuring compliance with seafood industry standards, and we’re committed to doing our part to make sure the seafood we buy and serve is sourced in a way that is ethical, responsible and sustainable,” Red Lobster said in a statement.

    In 2015, Thailand had passed laws to come down heavily on the abuses by the seafood industry in the country, and to register migrant workers without papers to ensure their safety.

  • Costa Coffee unveils new concept

    Costa Coffee unveils new concept

    The UK’s largest coffee chain Costa Coffee has opened a new concept, Costa Fresco.

    A food-centric store, the first outlet has opened in central London, selling porridge, pastries, salads, quiches and cakes, as well as coffee.

    Costa says if the concept is a success it will open more across the UK.

    “We really want to bring something different to the food market in London,” said Carol Welch, Costa’s global director of brand & innovation.

    “The store will be similar to the traditional Costa stores, but will have much more of a food focus. All pastries, cakes and bread will be baked on site – our customers are telling us they want more, good quality food.”

    Costa, part of Whitbred for the last 20 years, has 1582 stores in the UK and more in overseas locations, including Asia.

    The move into food is in part an attempt to stand out from rival coffee chains like Starbucks, adding a point of difference to attract customers.

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