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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.

  • Pepsico Surpasses Q3 Projections; Announces Leadership Transition And Future Growth Strategies

    Pepsico Surpasses Q3 Projections; Announces Leadership Transition And Future Growth Strategies

    PepsiCo recently reported robust Q3 results that exceeded projections, also unveiling key leadership changes as it intensifies its commitment towards expansion, cost efficiency, and meeting shareholder expectations.

    The beverage giant’s Q3 net income saw a 2.6% year-on-year surge, reaching an impressive US$23.94 billion ($36.5 billion). This was fueled mainly by robust pricing strategies and a boost in international sales, which helped offset the mild market performance in North America.

    Regional Performance

    In terms of regional performance, the company’s Latin American Foods division enjoyed 4% organic growth. The European, Middle Eastern, and African (EMEA) sectors also showed a strong performance, reporting 5.5% organic growth. While the Asia Pacific Foods division saw a slightly slower growth rate, it still managed to report a 1% organic increase.

    PepsiCo Beverages North America (PBNA) also contributed towards the company’s overall growth, with 2% organic revenue growth. This was attributed to their effective execution strategies for the Pepsi and Mountain Dew product lines, and the successful introduction of innovative platforms such as Pepsi Zero Sugar.

    Future Plans and Leadership Transition

    Ramon Laguarta, the Chairman and CEO of PepsiCo, stated, “As we look towards the remainder of this year and the future, our prime objectives are to speed up growth and drastically streamline our cost structure. To achieve these goals, we are leaning into a robust pipeline of innovation to expedite portfolio transformation, continually refining our price pack architecture to offer excellent value to consumers, and recalibrating our entire cost base to help finance our activities.”

    In a significant leadership transition, Steve Schmitt, the former CFO of Walmart U.S., will succeed Jamie Caulfield as PepsiCo’s CFO on November 10. Caulfield will continue to serve as an advisor until late next year. Schmitt’s extensive experience in retail, supply chain, and financial sectors is viewed as crucial for PepsiCo’s efforts to improve its operating leverage and address investor pressures.

    Laguarta added, “Steve’s track record in handling complex supply chains, adapting to the evolving retail landscape and omnichannel consumers, and delivering operational excellence at a large scale will be instrumental at PepsiCo. He will play a pivotal role as we expedite growth, streamline our cost structure, and generate enhanced value for our shareholders.”

    Questions & Answers

    What is PepsiCo’s focus for future growth?
    PepsiCo aims to accelerate growth and aggressively optimize their cost structure. They plan to introduce a strong innovation pipeline, continuously refine their pricing architecture, and right-size their entire cost base to fund their activities.

    Who is succeeding Jamie Caulfield as PepsiCo’s CFO?
    The former CFO of Walmart U.S., Steve Schmitt, will be succeeding Jamie Caulfield as PepsiCo’s CFO on November 10.

    What role will Steve Schmitt play at PepsiCo?
    Schmitt’s expertise in retail, supply chain, and financial sectors will be crucial to PepsiCo. He will be instrumental in handling complex supply chains, adapting to the dynamic retail landscape and omnichannel consumers, and delivering operational excellence on a large scale.

  • Singapore: The Springboard For Chinese F&b Brands Eyeing Global Expansion Amid Domestic Challenges

    Singapore: The Springboard For Chinese F&b Brands Eyeing Global Expansion Amid Domestic Challenges

    In the last year, an unprecedented influx of Chinese restaurants and cafes has made their mark in Singapore. These establishments view the island as an ideal launchpad for their global expansion plans, largely spurred by lackluster consumer demand, fierce price competition, and extremely tight profit margins in their domestic market.

    Popular Chinese companies like Luckin Coffee and Mixue, a major bubble tea player, have joined a wave of hotpot and mala restaurants setting up shop overseas following the pandemic. They aim to leverage the international allure of the city-state, a trend that industry experts and executives predict will only gain momentum.

    Challenges in the Domestic Market

    According to Josie Zhou, the overseas general manager of Hunan cuisine restaurant Nong Geng Ji, the challenging business environment in China has prompted many brands to consider international expansion. Nong Geng Ji chose Singapore as the first stop in its global growth strategy.

    Persistent price wars have compelled Chinese food and beverage companies to seek new growth models abroad, says Joanna Jia, Singapore manager of bubble tea chain ChaPanda. The chain opened two franchisee tearooms in the city in July and is planning for more.

    Stagnant demand, exacerbated by a prolonged property market slump and US tariffs on Chinese goods, has hampered growth in China since the end of the Covid-19 lockdown nearly three years ago. This has intensified price wars across various sectors, leading to increasing deflationary pressure.

    Singapore: A Stepping Stone for Global Expansion

    Culturally similar Singapore has often served as a gateway for Chinese companies aiming to expand globally. As of August, about 85 Chinese food and beverage brands were operating approximately 405 outlets in Singapore, a considerable increase from the 32 brands that had 184 outlets in June of the previous year, according to data from consultancy firm Momentum Works.

    This rapid growth unfolds as local operators, including low-cost hawker stalls and Michelin-star restaurants, grapple with rising costs and lower consumer spending. However, Chinese brands remain optimistic about their prospects in Singapore, confident in their lean business models and supply chain management practices that allowed them to weather the storm in their home market.

    For example, tearoom chain Chagee can prepare a customized iced milk tea in just eight seconds using machines developed in-house, according to Jonathan Ng, Chagee’s director of government and public affairs for the Asia-Pacific region. This kind of agility has helped companies like Luckin and Mixue withstand the growth of Western competitors such as Starbucks in China.

    Backlash from Local Businesses

    These ready-made models have not been well received by all, however. Singapore Tenants United for Fairness, which represents 700 local business owners, stated in June that domestic companies struggle to compete with these larger Chinese entrants.

    “They are not even in the same stadium,” said the cooperative, implying the vast disparity between the resources of local SMEs and those of their Chinese counterparts.

    Gateway Singapore

    Singapore is often seen as a bridge between Eastern and Western cultures and is viewed as an attractive platform for expansion, especially given its 6.1 million predominantly Chinese population. Furthermore, Singapore’s reputation as a wealthy, fashionable location can significantly enhance a brand’s image.

    “If we can build up our brand in Singapore, the brand awareness can go to Malaysia and Vietnam, even Indonesia,” said ChaPanda’s Jia.

    Some smaller Chinese firms are often backed by deep-pocketed investors, giving them a competitive edge when it comes to securing prime locations. However, an influx of investment from large Chinese conglomerates has resulted in increased rents, especially in high-traffic areas, according to Ethan Hsu, head of retail for real estate firm Knight Frank.

    Questions & Answers

    Why are Chinese restaurants and cafes expanding to Singapore?
    A challenging business environment in China, characterized by fierce price competition and weak consumer demand, has prompted these businesses to explore new growth opportunities abroad. Singapore, with its cultural similarities to China and globally-oriented market, presents an attractive option for expansion.

    How are Chinese companies faring in the competitive Singaporean market?
    Despite the challenges faced by local operators, Chinese brands are optimistic about their prospects in Singapore. Their lean business models and robust supply chain management practices, which have been tested in their home market, provide them with a competitive edge.

    Is there any backlash against the influx of Chinese companies in Singapore?
    Yes, there has been some backlash, particularly from local businesses. Singapore Tenants United for Fairness, representing 700 business owners, has voiced concerns about the ability of local companies to compete effectively against their larger Chinese counterparts.

  • Filipino Bakery Chain Mary Grace Set For First International Venture In Singapore

    Filipino Bakery Chain Mary Grace Set For First International Venture In Singapore

    Singapore has recently seen an influx of Chinese food and beverage (F&B) brands. Among them are the florist-café Tomacado, the popular teahouse Incloud, and Siji Miinfu, a specialist in Peking duck. However, the island nation is also preparing to welcome a notable name from the Philippines: Mary Grace. From its humble beginnings as a small bazaar stall set up by a mother of five in 1994, Mary Grace has grown into a bakery and café chain with over 140 outlets in the Philippines. The upcoming Singaporean outlet will be its first international venture.

    Mary Grace’s Initial Success in Singapore

    In September of this year, Mary Grace held a three-day pop-up event in Singapore. Despite minimal advertising, the event was a sold-out success. This could be a signal that when the permanent store opens, a large number of eager customers will be waiting.

    Signature Offerings

    The bakery’s signature offerings include its cheese rolls and ensaymada, a soft and buttery Filipino pastry adapted from the Spanish ensaïmada. In the classic version, Mary Grace tops the pastry with a dusting of aged Edam cheese. During the pop-up event, a box of six was sold for $31.50. The ensaymada also comes in several other flavours, such as cinnamon apple and chocolate.

    Mary Grace’s other home-style baked goods include carrot cake, banana bread, lemon bars, and strawberry shortcake. It is hoped that these, along with savoury items like sandwiches and Filipino-style all-day breakfast dishes, will be available in the Singapore store.

    Further Information

    Details about the exact location and opening date of Mary Grace’s Singapore location are still forthcoming. The latest updates will be posted on its Instagram account @cafemarygrace.sg.

    Questions & Answers

    What is Mary Grace’s origin?
    Mary Grace originated as a small bazaar stall set up by a mother of five in the Philippines in 1994. It has since grown into a large bakery and café chain with over 140 outlets in its home country.

    What are some of the signature items at Mary Grace?
    Some of the signature items at Mary Grace include cheese rolls, ensaymada which is a fluffy, buttery Filipino pastry, and other home-style baked goods like carrot cake, banana bread, lemon bars, and strawberry shortcake.

    When and where will the permanent Mary Grace store in Singapore open?
    The exact details regarding the opening date and location of the Mary Grace store in Singapore have not yet been released. Future updates will be posted on its Instagram account @cafemarygrace.sg.

  • KFC Unveils Butterbear Merchandise: New Trend Sweeps Fast-food Giant In Singapore

    KFC Unveils Butterbear Merchandise: New Trend Sweeps Fast-food Giant In Singapore

    Step aside, Labubu. A new captivating character is capturing our affections, and it doesn’t hail from Pop Mart. The Butterbear, a charming mascot from Thai bakery Butterbear, is quickly gaining fame. So, it was only a matter of time before brands jumped on the trend with an appealing collaboration. Leading the way in Singapore is the fast-food giant, KFC, which recently unveiled a delightful range of collectible Butterbear merchandise that fans will surely find irresistible.

    The Butterbear Boom

    This comes in the wake of the successful Mofusand launch for the Chinese New Year 2025. The launch included items like soft toy keychains, stickers, and red packets decorated with cats.

    KFC Meets Butterbear

    In keeping with the current rage for blind boxes, the KFC x Butterbear collection intriguingly includes surprise keychains. Collectors can seek out four different designs from October 15 to November 25, 2025, while stocks last. Each design draws inspiration from a different beloved item on the KFC menu: the egg tart, the Zinger, the drumstick, and the chicken bucket.

    To secure one of these keychains for $12.95, customers need to purchase either the Thai-Thai Saucy Chicken Box ($13.95) or the Thai-Thai Saucy Bites Box ($11.95). These are new limited-edition offerings that are part of the collaboration. The Thai-Thai Saucy Chicken Box offers a spicy, tangy, Thai-inspired version of KFC’s hot and crispy chicken, while the Thai-Thai Saucy Bites Box features boneless chicken pieces doused in the same distinctive sauce.

    Additionally, the menu features Thai fritters with condensed milk ($4.40 for four pieces), which can be thought of as the Thai twist on you tiao.

    A Rewarding Experience

    Early birds will be rewarded for their punctuality with Butterbear stickers. To claim these, they simply need to purchase two breakfast Twister buddy meals for $12. This offer is valid for both dine-in and takeaway orders. But fear not, night owls; those who prefer to order their Thai-Thai Saucy Chicken or Bites Box via KFC delivery can also snag a pair of red KFC Butterbear long socks for $5.95. If they choose to order via Grab, they can get a green version of the socks instead.

    Butterbear Plush Crossbody Bag

    One of the collection’s highlights is undoubtedly the KFC Butterbear plush crossbody bag. This accessory allows you to carry your essentials and your buttery buddy wherever you go. The bag, like the blind boxes, is purchasable with any order of the Thai-Thai Saucy Chicken or Bites Box. But act fast, as only 3,000 are available across selected KFC outlets in Singapore.

    These outlets include: Plaza Singapura, West Mall, Bedok Town Square, Causeway Point, HarbourFront Centre, Nex, Jurong Point, Lot One, Compass One, Northpoint City, Toa Payoh, Tampines Mall, Star Vista, Novena Square, and Admiralty Place.

    Questions & Answers

    What are some of the items included in the KFC x Butterbear collection?
    The KFC x Butterbear collection includes surprise keychains, Butterbear stickers, red and green KFC Butterbear long socks, and a KFC Butterbear plush crossbody bag.

    How can one acquire items from the KFC x Butterbear collection?
    The items can be obtained by purchasing certain meals from KFC, such as the Thai-Thai Saucy Chicken Box or the Thai-Thai Saucy Bites Box. Some items are offered as rewards for purchasing specific meals or placing orders through certain platforms.

    Where can the KFC x Butterbear collection be found?
    The collection is available at 15 selected KFC outlets across Singapore, including Plaza Singapura, West Mall, Bedok Town Square, and Causeway Point, among others.

  • Nestle Exits Dairy Methane Action Alliance, Commences Partnership With World Farmers’ Organisation

    Nestle Exits Dairy Methane Action Alliance, Commences Partnership With World Farmers’ Organisation

    Nestle, a global food conglomerate, has announced its decision to exit the Dairy Methane Action Alliance, an international consortium committed to reducing methane emissions. The consortium, established in December 2023, comprises members like Danone, Kraft Heinz, and Starbucks. These members pledge to openly monitor and report methane emissions derived from their dairy supply chains, as well as design and implement strategies to curb these emissions over time.

    Despite withdrawing from the alliance, Nestle has not provided a specific reason for its decision. Nevertheless, the company has affirmed its dedication to lowering greenhouse gas emissions, including methane, across its supply chains. Nestle reiterated its pledge towards achieving net-zero emissions by 2050.

    New Collaboration

    Following its departure from the Dairy Methane Action Alliance, Nestle announced a partnership with the World Farmers’ Organisation. The alliance aims to enhance the resilience of food systems in the face of climate change.

    Climate Alliances Facing Challenges

    Nestle’s withdrawal represents a setback for corporate alliances aiming to mitigate the effects of global warming. This development coincides with the dismantling of several climate protection initiatives by high-profile figures, such as former US President Donald Trump. Additionally, numerous major banks have left the sector’s main group committed to reducing carbon emissions.

    Nestle emphasized its routine assessment of memberships in external organizations, declaring that it has chosen to terminate its membership in the Dairy Methane Action Alliance following such a review.

    By the end of 2024, Nestle had successfully reduced its methane emissions by nearly 21% compared to 2018 levels, according to the company’s 2024 non-financial statement.

    Methane, which is approximately 30 times more potent than carbon dioxide, is a key target in the fight against global warming. Agriculture accounts for nearly 40% of human-induced methane emissions, with the lion’s share originating from livestock, according to the Environmental Defense Fund (EDF).

    The EDF, the organization which established the methane alliance, stated that Nestle’s logo had been taken off its main page, although the company’s name remains visible on other pages. The EDF offered no reason for Nestle’s withdrawal, but acknowledged and appreciated Nestle’s ongoing commitment to addressing dairy emissions through its Dairy Climate Plan and Net Zero Roadmap.

    Questions & Answers

    Question: Why did Nestle leave the Dairy Methane Action Alliance?
    Answer: Nestle hasn’t provided a specific reason for its decision to withdraw from the Dairy Methane Action Alliance.

    Question: Is Nestle still committed to reducing greenhouse gas emissions?
    Answer: Yes, despite its withdrawal from the Dairy Methane Action Alliance, Nestle has affirmed its commitment to lowering greenhouse gas emissions, including methane. The company has also reiterated its goal of achieving net-zero emissions by 2050.

    Question: Has Nestle formed any new partnerships after leaving the Dairy Methane Action Alliance?
    Answer: Yes, Nestle has announced a partnership with the World Farmers’ Organisation, aiming to enhance the resilience of food systems towards climate change.

  • Richard Hinson Takes Helm As Ceo Of Minor Dkl, Sets Stage For Coffee Club Expansion

    Richard Hinson Takes Helm As Ceo Of Minor Dkl, Sets Stage For Coffee Club Expansion

    Minor DKL Food Group, the Australian subsidiary of Thai-based company Minor International, has recently announced the appointment of Richard Hinson as their new CEO. This strategic move sets the stage for the next expansion phase of The Coffee Club.

    Hinson’s Background and Future Roles

    Before joining Minor DKL, Hinson held several high-ranking positions, managing intricate supply chains, high-volume consumer retail, and multi-location hospitality operations. His previous roles involved managing turnaround programs at Retail Food Group and aiding Countrywide in becoming a prominent foodservice distributor in Australia.

    Hinson emphasized the importance of people-centered operations in the success of cafés. “The heart of a successful café lies in its people – our franchise partners, their teams, and the customers who have made The Coffee Club a part of their daily routine,” Hinson stated.

    He pledged his commitment towards bolstering these partnerships and creating a culture that revolves around collaboration and innovation. Hinson aims to ensure a thriving environment for franchise partners and a personalized, memorable experience for every customer. He believes that such an approach will help continue to cultivate a café network that Australians can love and trust for generations to come.

    Hinson’s Plans for The Coffee Club

    In his new role with The Coffee Club, Hinson’s focus will be on strengthening franchise partnerships, boosting operational efficiency, and enhancing the customer experience. He has expressed his intention to support the launch of the new grab-and-go concept, Three Stories Café, which recently opened its first store in South Brisbane.

    Questions & Answers

    What is Richard Hinson’s background?

    Richard Hinson has a wealth of experience in the retail and hospitality sectors, having held senior leadership roles where he managed complex supply chains, high-volume consumer retail, and multi-site hospitality. He has also managed turnaround programs and helped establish a leading foodservice distributor.

    What is Hinson’s primary focus as CEO of Minor DKL Food Group?

    Richard Hinson aims to strengthen franchise partnerships, improve operational efficiency, and enhance the customer experience at The Coffee Club. He also plans to support the rollout of the new grab-and-go concept, Three Stories Café.

    What is the ultimate goal of Hinson’s strategy for The Coffee Club?

    Hinson’s objective is to create a thriving environment for franchise partners and provide a personalized, memorable experience for every customer. He believes that this approach will help build a café network that Australians will continue to love and trust for the years to come.

  • Arktika Vodka Expands With New Ready-to-drink Line: Launches Unique Fruit Flavours

    Arktika Vodka Expands With New Ready-to-drink Line: Launches Unique Fruit Flavours

    Arktika Vodka has recently unveiled their new ready-to-drink (RTD) product line. This line features three unique flavours: Raspberry, Lemon & Lime, and Lemonade. By introducing these new offerings, the firm seeks to solidify its standing in the RTD category.

    New Ready-to-Drink Offerings

    In these new offerings, Arktika Vodka has successfully combined their signature vodka with natural fruit flavours to create a distinctive and refreshing beverage. Each flavour promises to offer a perfect balance of sweetness and a clear, crisp profile that is sure to delight the senses. This balance between sweet and clean ensures a satisfying experience for all palates.

    Packaging and Alcohol Content

    The new RTD beverages will be provided in 375ml cans, making them the ideal size for a single serving. They contain an alcohol by volume (ABV) of 4.2 per cent. This moderate alcohol content makes them a perfect choice for casual sipping or for social gatherings.

    Availability and Pricing

    The new Arktika Vodka RTDs are now available for purchase at a recommended retail price (RRP) of $49. They can be found through several national distributors, including ALM and Paramount Liquor.

    Questions & Answers

    What are the new flavours offered by Arktika Vodka in their RTD line?
    Arktika Vodka has introduced three flavours in their RTD line: Raspberry, Lemon & Lime, and Lemonade.

    What is the size and alcohol content of the new RTD offerings?
    The RTDs are available in 375ml cans with an alcohol by volume (ABV) of 4.2 per cent.

    What is the price of the Arktika Vodka RTDs and where can they be purchased?
    The Arktika Vodka RTDs can be purchased for a recommended retail price (RRP) of $49 through several national distributors, including ALM and Paramount Liquor.

  • Swift & Moore Partners With Otter Craft Distilling For Nationwide Spirits Distribution

    Swift & Moore Partners With Otter Craft Distilling For Nationwide Spirits Distribution

    Swift & Moore, a beverage distributor, has recently formed a collaboration with Otter Craft Distilling (OCD). As part of this new alliance, Swift & Moore will be taking over the nationwide distribution of the Sydney-based distillery’s variety of small-batch spirits.

    Collaboration Details

    In addition to taking over the distribution, Swift & Moore will also relocate some of its spirits production to Otter’s Marrickville facility. This strategic decision is designed to enhance Swift & Moore’s impact in the high-end spirits category, a segment that continues to experience growth in both retail and on-site sales channels.

    Established in 2015, Otter Craft Distilling produces a selection of Australian vodka, gin, and whiskey. The company has built a reputation for its small-scale, hands-on production methods. All their products are made in controlled quantities directly on-site. This collaboration provides the brand with access to Swift & Moore’s comprehensive national sales and logistics network.

    CEO’s Remarks

    “OCD represents the creativity and quality that consumers are growing more interested in when it comes to craft spirits,” observed Michael McShane, CEO of Swift & Moore. He further noted, “This partnership allows us to introduce their exceptional products to a larger audience and persist in driving growth and customization in the premium spirits category.”

    Swift & Moore manages a collection of numerous beverage brands, comprising both local and international producers. The company has gradually shifted its focus towards premium spirits as a key aspect of its growth strategy.

    Distribution Status

    The partnership started immediately, with OCD products being incorporated into Swift & Moore’s national distribution system well before the holiday trading season.

    Questions & Answers

    What products does Otter Craft Distilling produce?
    Otter Craft Distilling makes a selection of Australian vodka, gin, and whiskey.

    What is Swift & Moore’s growth strategy?
    Swift & Moore has gradually been focusing more on premium spirits as a significant part of its growth strategy.

    How will the partnership benefit Otter Craft Distilling?
    The partnership will give Otter Craft Distilling access to Swift & Moore’s comprehensive national sales and logistics network, helping the brand expand its reach.

  • Domino’s Japan Welcomes New Ceo Dieter Haberl Amid Leadership Streamlining Strategy

    Domino’s Japan Welcomes New Ceo Dieter Haberl Amid Leadership Streamlining Strategy

    Dieter Haberl has been named as the new CEO of Domino’s Japan business. The appointment, effective from October 20, sees Haberl bring over a quarter-century of executive experience in Japan to the role.

    Haberl has a distinguished history of leadership in the region, having guided the fortunes of prominent consumer brands such as Toys R Us, Reebok, Lacoste, and Furla. He has also held high-level roles within The Coca-Cola Company in Germany and Japan.

    Domino’s executive chairman, Jack Cowin, expressed his pleasure at Haberl’s appointment. He lauded Haberl’s proven ability to drive large-scale transformations, reposition brands, and foster team development in sophisticated consumer-facing operations.

    Cowin emphasized the critical importance of the Japanese market for Domino’s, highlighting its leading status in the pizza sector. He indicated that Japan is an advanced market that values high-quality food, especially from global brands with a proven track record of surpassing customer expectations.

    However, the appointment of Haberl coincides with the departure of the current acting CEO of Domino’s Japan and CEO of Domino’s Asia, Josh Kilimnik. He will be exiting the business on March 30 after a transition period with Haberl.

    Kilimnik’s departure follows the company’s decision to cut down general and administrative expenses by streamlining regional leadership. This strategic move is aimed at giving regional teams more responsibility and accountability. As a part of this decision, Domino’s confirmed that the roles of CEO Asia and the presently unoccupied role of CEO Europe will remain unfilled.

    Questions & Answers

    Who is the new CEO of Domino’s Japan?
    The new CEO of Domino’s Japan is Dieter Haberl, an executive with over 25 years of experience in Japan.

    When will the current CEO of Domino’s Asia, Josh Kilimnik, leave the business?
    Josh Kilimnik, the current acting CEO of Domino’s Japan and CEO of Domino’s Asia, will leave the business on March 30.

    Will the roles of CEO Asia and CEO Europe be filled after Kilimnik’s departure?
    No, Domino’s has decided not to fill the roles of CEO Asia and the presently vacant role of CEO Europe. This decision is part of a strategic move to streamline regional leadership and give more responsibility and accountability to regional teams.

  • Cafe Amazon Retreats From Vietnam: Intense Competition Spurs Strategic Pivot For Centel

    Cafe Amazon Retreats From Vietnam: Intense Competition Spurs Strategic Pivot For Centel

    Thailand’s Cafe Amazon seems prepared to bow out from the local market after a half-decade attempt to square up with local coffee chains. At the forefront of this decision is Central Plaza Hotel Public Company Limited (Centel), who will be stepping away from the Cafe Amazon joint venture in Vietnam. This move indicates a strategic pivot in response to the fierce competitive landscape in Vietnam’s coffee sector.

    Centel’s withdrawal implicates the dissolution of the ORC Coffee Passion Group Joint Stock Company (ORCG), the corporation responsible for the operations of Cafe Amazon within Vietnam. ORCG was a partnership between Centel’s indirect subsidiary, Central Restaurants Group (Vietnam), which owns a 40 per cent stake, and PTTOR International Holdings (Singapore), another subsidiary of the publicly-traded Thai firm PTT Oil and Retail Business, with a 60 per cent stake.

    In an official statement, Centel underscored the necessity to “realign business priorities” and adapt to the pressing challenges in the market. As of the end of August, the company’s investment in the venture amounted to THB 56 million (US$1.72 million).

    This decision marks the end of Centel’s involvement in Cafe Amazon’s expansion into Vietnam, an ambitious initiative that was launched in 2020 with the goal of becoming a top global coffee brand. Unfortunately, the stiff competition from both international and local chains proved to be too daunting.

    Questions & Answers

    What is the primary reason for Cafe Amazon’s exit from Vietnam?
    Intense competition from local and international coffee chains is the main reason behind Cafe Amazon’s exit from the Vietnamese market.

    What percentage of ORC Coffee Passion Group Joint Stock Company (ORCG) does Central Restaurants Group (Vietnam) hold?
    Central Restaurants Group (Vietnam), an indirect subsidiary of Centel, holds a 40 per cent stake in ORCG.

    When did Cafe Amazon originally plan its expansion into Vietnam?
    Cafe Amazon initiated its ambitious expansion into Vietnam in 2020, with the goal of becoming a top global coffee brand.

  • Us Spirit Exports Plunge Amid Rising Trade Tensions, Major Markets Show Sharp Decline

    Us Spirit Exports Plunge Amid Rising Trade Tensions, Major Markets Show Sharp Decline

    The Distilled Spirits Council of the United States (DISCUS) has reported that the nation’s spirit exports saw a 9% decrease in the second quarter. The organization indicated that this marked a sharp downturn from the solid export performance recorded in 2024. The major markets that experienced steep falls include the European Union, Canada, Britain, and Japan, which collectively contribute to 70% of the total export value. DISCUS, a trade association representing leading spirit producers such as Pernod Ricard, maker of Jameson Irish whiskey, and Brown-Forman, producer of Jack Daniel’s, attributed the slump to increasing trade tensions.

    Significant Market Drops

    Canada recorded the highest decline, with US spirit exports plummeting 85% to less than $10 million in the second quarter. The majority of Canadian provinces maintain a ban on American spirits in their stores, a measure implemented in response to US tariffs targeting Canada. However, Canada lifted retaliatory tariffs in September.

    Meanwhile, other significant markets also experienced drops. Exports to the EU, the industry’s largest market, declined 12% to $290.3 million, while shipments to Britain decreased 29% to $26.9 million. Exports to Japan also fell 23% to $21.4 million.

    Industry Concerns

    “There’s a growing concern that our international customers are increasingly opting for domestically-produced spirits or imports from countries other than the US, signalling a shift away from our great American spirits brands,” commented DISCUS President Chris Swonger.

    Swonger’s statement reflects wider apprehensions in the consumer goods industry about rising anti-American sentiment in the wake of the extensive tariff regime and other policies pursued by the US government.

    Reports have also suggested that this export slump coincides with American whiskey producers struggling with slowing domestic sales and historically high inventory levels.

    Call for Tariff Revisions

    Swonger emphasized the interconnectedness of the spirits sector, implying that US tariffs impact the industry as a whole. He appealed to the administration to focus on reestablishing zero-for-zero tariffs with trading partners.

    Questions & Answers

    What was the percentage drop in US spirit exports in the second quarter?
    There was a 9% decrease in US spirit exports.

    Which country recorded the most dramatic fall in US spirit exports?
    Canada recorded the most dramatic fall with an 85% decrease in US spirit exports.

    What are some of the challenges faced by American whiskey producers?
    American whiskey producers are facing challenges such as slowing domestic sales and record-high inventory levels.

  • Ferrero Partners With Paramount: Paw Patrol Meets Kinder Surprise In Phygital Play Innovation

    Ferrero Partners With Paramount: Paw Patrol Meets Kinder Surprise In Phygital Play Innovation

    Ferrero’s Kinder Surprise has embarked on a collaboration with Paramount to introduce a new chocolate egg range that carries a Paw Patrol theme.

    An Exciting Partnership

    In every chocolate egg, a toy inspired by one of the eight characters from Spin Master’s preschool series, Paw Patrol, can be found. The characters include favorites such as Chase, Marshall, Skye, and Everest.

    The collaboration also incorporates the use of the Applaydu app. This app provides children with the opportunity to access an augmented reality experience which brings the collectible toys from the Kinder Surprise eggs to life. This combination of physical and digital play – or ‘phygital’ play – adds an extra layer of interactive fun to the experience.

    A Magical Combination

    Antony Foulet, the marketing manager of Kinder ANZ, has expressed excitement about the collaboration. He remarked that Paw Patrol is a favorite among families with young children. By merging the delicious Kinder chocolate with the adventurous spirit of Paw Patrol, the partnership is bound to create magical moments that will inspire curiosity, imagination, and play.

    The Paw Patrol-themed Kinder chocolate eggs are available in major grocery and convenience stores throughout the country. Each egg retails at a recommended price of $2.80.

    Questions & Answers

    Which characters from the Paw Patrol series are included in the Kinder Surprise eggs?
    The Kinder Surprise eggs contain toys inspired by eight characters from the series, including popular characters Chase, Marshall, Skye, and Everest.

    What unique feature does the collaboration offer through the Applaydu app?
    The collaboration offers an augmented reality experience through the Applaydu app that brings the toys found in the Kinder Surprise eggs to life, creating a ‘phygital’ play experience.

    Where can consumers purchase the Paw Patrol-themed Kinder Surprise eggs?
    The Paw Patrol-themed Kinder Surprise eggs are available in major grocery and convenience stores nationwide.

  • Coca-Cola closer to sale of Costa Coffee – reports

    Coca-Cola closer to sale of Costa Coffee – reports

    The Coca-Cola Company is said to have received a bid from Bain Capital’s Special Situations division for its well-known café chain, Costa Coffee. Established in London in 1971 by brothers Bruno and Sergio Costa, the business started as a wholesale operation providing roasted coffee. The coffee chain caught the attention of Whitbread, which acquired the business in 1995. Later, in 2018, Costa Coffee was sold to The Coca-Cola Company for roughly £3.9 billion, equivalent to approximately US$5.1 billion at the time of the transaction.

    Bain Capital’s Bid

    The Special Situations unit of Bain Capital, which has previously invested in British bakery and café chain Gail’s as well as restaurant chain PizzaExpress, has proposed an initial bid for the UK-based coffee chain. Besides Bain, private equity firm TDR Capital has also expressed interest in the deal.

    Costa Coffee’s Global Presence

    Costa Coffee has grown significantly since its establishment, expanding its presence to over 50 countries. It currently maintains more than 2700 stores across the UK and Ireland and operates in more than 1300 locations in other global markets.

    Challenges Amidst the Pandemic

    Despite its global reach and popularity, Costa Coffee has grappled with increasing costs and a decline in consumer spending due to the Covid-19 pandemic. The café chain reported an annual loss of £13.8 million and revenues of £1.2 billion in 2023.

    Bain Capital’s Recent Acquisitions

    Bain Capital has a history of acquiring food and beverage establishments. For instance, the firm purchased the restaurant franchise growth platform Sizzling Platter in July, which operates several well-known brands such as Little Caesars, Wingstop, and Dunkin’.

    Questions & Answers

    Who initially founded Costa Coffee and when was it established?
    Costa Coffee was established by brothers Bruno and Sergio Costa in London in 1971.

    Who submitted a bid for Costa Coffee?
    The Special Situations unit of Bain Capital has reportedly submitted a bid for Costa Coffee.

    What financial impact did the Covid-19 pandemic have on Costa Coffee?
    Due to the pandemic, Costa Coffee has faced a decline in consumer spending and rising costs, resulting in an annual loss of £13.8 million in 2023.

  • Chagee Unveils World’s Largest Flagship Store In Hong Kong, Reinforces Commitment To Authentic Tea Culture

    Chagee Unveils World’s Largest Flagship Store In Hong Kong, Reinforces Commitment To Authentic Tea Culture

    Chagee, a popular Chinese tea chain, has recently launched its biggest global flagship store on Lee Tung Street in Wan Chai. This marks the seventh establishment for the brand in Hong Kong.

    Spacious and Multifunctional Flagship Store

    The new flagship store boasts an impressive 11,000 square feet of space, spread over two levels. The innovative double-storey design of the store blends retail shopping with cultural and social spaces, positioning it as a hub for both business and culture.

    A Unique Tea Experience

    Chagee stands out in the tea market through its luxury-leaning, minimalist brand identity. The brand is recognized for its commitment to using real tea leaves, fresh milk, and foregoing artificial sweeteners in its products. Their menu offers a contemporary spin on traditional teas, featuring such unique offerings as cream-topped Oolong tea.

    Confidence in Future Growth

    Rex Ho, General Manager for Hong Kong and Macau, expressed a strong belief in the brand’s potential for growth within the Hong Kong market. He stated, “We are optimistic, and we see Hong Kong as a platform for international cultural exchange. This city can help Chagee share the beauty of tea culture with a global audience.”

    With this belief in mind, the decision was taken to establish the world’s largest Chagee store in Hong Kong. Ho affirmed that the company will continue to invest resources to support the evolution and innovation of tea culture in the area.

    Chagee has shown considerable growth since it first entered the Hong Kong market last year. After expanding to seven stores in the city, the brand has plans to open at least 10 more outlets to accelerate its local expansion.

    Global Presence

    On a global scale, Chagee has a strong presence with over 7,000 stores spread across various markets including China, Malaysia, Singapore, Thailand, the Philippines, and the United States.

    Questions & Answers

    What sets Chagee apart from other tea chains?
    Chagee differentiates itself through a minimalist, luxury-leaning brand identity and a commitment to using real tea leaves, fresh milk, and no artificial sweeteners in its products.

    Where is Chagee’s largest global flagship store located?
    The largest Chagee store worldwide is located on Lee Tung Street in Wan Chai, Hong Kong.

    What are Chagee’s future plans in Hong Kong?
    Chagee plans to strengthen its presence in Hong Kong by opening at least 10 more outlets in the city as part of its local expansion efforts.

  • Gong Cha Exits Singapore Market After Franchise Agreement Ends; Plans For A Revamped Return Underway

    Gong Cha Exits Singapore Market After Franchise Agreement Ends; Plans For A Revamped Return Underway

    Taiwan’s popular milk tea brand, Gong Cha, has ceased operations and shuttered all its outlets island-wide as of October 1. This move follows the expiration of its franchise agreement with Gong Cha Singapore, which has been running the brand’s operations since 2017.

    All the physical stores were abruptly closed, and the brand’s digital presence was also taken down, including its website, social media accounts, and listings on food delivery platforms.

    Kang Puay Seng, Gong Cha Singapore’s CEO, confirmed these developments, expressing his gratitude to customers, staff, and business partners for their support.

    Future Prospects

    Gong Cha’s Global has confirmed plans to re-enter the Singapore market next year. The global CEO, Paul Reynish, stated that the company is currently in the process of selecting a new master franchisee and will relaunch with an updated ‘Gong Cha 2.0’ store concept, which has already been successfully implemented in select international markets.

    Gong Cha initially entered the Singapore market in 2009 but later withdrew due to a franchise dispute. The brand then re-entered the market under a new agreement with its now-former franchisee.

    The decision to exit the Singapore market follows a period of strong global performance for the brand. Earlier this year, Gong Cha reported an impressive US$600 million in system-wide sales for the 12 months ending in December, a milestone attributed to its aggressive international expansion.

    Questions & Answers

    What is the reason for Gong Cha’s exit from the Singapore market?
    Gong Cha’s exit from the Singapore market followed the end of its franchise agreement with Gong Cha Singapore.

    Will Gong Cha return to the Singapore market?
    Yes, Gong Cha Global has announced plans to re-enter the Singapore market in the coming year with a new master franchisee and an updated ‘Gong Cha 2.0’ store concept.

    What has been Gong Cha’s performance in the past year?
    Gong Cha reported strong global performance, with system-wide sales reaching $600 million for the 12 months ending in December. This success is mainly attributed to the brand’s rapid international expansion.