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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.

  • Coca-Cola Europacific VP Peter West Announces Retirement, Gareth Mcgeown To Take Helm

    Coca-Cola Europacific VP Peter West Announces Retirement, Gareth Mcgeown To Take Helm

    Peter West, the current Vice President and General Manager of Coca-Cola Europacific Partners’ Australia, Pacific, and Southeast Asia (APS) division, has announced his forthcoming retirement at the end of the year. His departure concludes an impressive 35-year trajectory in the Fast-Moving Consumer Goods (FMCG) sector.

    Contributions and Achievements

    West commenced his tenure with Coca-Cola Amatil in 2018, taking on the role of Managing Director for Australian beverages. He became an instrumental figure in incorporating the APS region into Coca-Cola Europacific Partners (CCEP) after the company’s successful acquisition in 2021.

    Damian Gammell, CEO of Coca-Cola Europacific Partners, praised West’s performance, noting that his contributions had been transformative for both the Australian division and the wider region. Gammell pointed out West’s profound industry knowledge, his comprehension of the market landscape, and his capacity to stimulate growth in various markets. These attributes have earned West widespread respect within and outside the company.

    Prior to his role at Coca-Cola, West held high-ranking leadership positions at prominent companies such as Lion Dairy & Drinks, Mars Confectionery, and Arnott’s.

    Leadership Transition

    West’s successor, as of January 1, will be Gareth McGeown, who is currently the General Manager of CCEP Philippines.

    Reflecting on his career, West claimed that his tenure at Coca-Cola, and his role in the expansion and growth of Coca-Cola Europacific Partners, were the highlights of his professional life. He expressed his excitement about passing his responsibilities to McGeown, praising his expertise, enthusiasm, and strong business acumen. West is confident that McGeown will maintain the momentum of growth in the region.

    Questions & Answers

    Who will succeed Peter West as the Vice President and General Manager of Coca-Cola Europacific Partners’ APS division?
    Gareth McGeown, the current General Manager of CCEP Philippines, will succeed Peter West.

    When did Peter West join Coca-Cola Amatil?
    Peter West joined Coca-Cola Amatil in 2018 as the Managing Director of Australian beverages.

    What companies did Peter West work for before joining Coca-Cola?
    Prior to Coca-Cola, West held leadership positions at Lion Dairy & Drinks, Mars Confectionery, and Arnott’s.

  • Potato Corner Debuts In Taiwan: Strategic Expansion Into 16th International Market

    Potato Corner Debuts In Taiwan: Strategic Expansion Into 16th International Market

    Potato Corner, a popular flavored fries chain, has made its debut in the Taiwan market. The brand’s inaugural store was launched at the Uni-President Department Store, located in Taipei’s Xinyi District.

    Collaboration with Local F&B Operator

    The launch in Taiwan was made possible through a strategic partnership with Fujin Tree Group, a local operator in the lifestyle and food & beverage sectors. Vicente Gregorio, the president and CEO of Shakey’s Pizza Asia Ventures (Spavi) which owns Potato Corner, expressed confidence in their collaboration with Fujin Tree Group. He emphasized its strategic importance in the brand’s international expansion plan, saying, “We anticipate enhancing and expanding our brand visibility in Taiwan with the robust backing of our partner, Fujin Tree.”

    Expansion Plans

    Jay Wu, the founder of Fujin Tree Group, corroborated this sentiment, stating that more Potato Corner stores are in the pipeline and expected to open before the end of the year. Following its acquisition by Spavi in 2022, Potato Corner has seen significant growth, boasting 2345 outlets across the globe. The entry into Taiwan marks the brand’s penetration into its 16th international market.

    Brand Value

    Gregorio iterated his pride in bringing Potato Corner to new international markets, highlighting the importance of this milestone for the brand. He said, “Potato Corner’s debut in Taipei is a notable moment not just for our flavored fries, but for our group’s vision of wowing more guests around the globe.”

    Questions & Answers

    What is the significance of Potato Corner’s launch in Taiwan?
    The launch marks Potato Corner’s entry into its 16th international market, further expanding its global footprint.

    Who is Potato Corner’s local partner in Taiwan?
    Potato Corner has partnered with the Fujin Tree Group, a Taiwan-based operator in the lifestyle and food & beverage sectors.

    What are the future expansion plans for Potato Corner in Taiwan?
    In collaboration with Fujin Tree Group, Potato Corner plans to open additional stores in Taiwan by the end of the year.

  • Suntory Unveils Limited-edition Pineapple Punch Maximus: Bold Flavour Aims To Drive Summer Sales

    Suntory Unveils Limited-edition Pineapple Punch Maximus: Bold Flavour Aims To Drive Summer Sales

    Suntory, the esteemed beverage company, has shared news of an exciting addition to their Maximus sports drink collection. They have announced the limited-edition release of Pineapple Punch. The brand is known for its bold and distinctive flavors, and this new variant is set to continue that trend.

    Expanding the Maximus Line-Up

    The introduction of Pineapple Punch expands the existing Maximus line-up, which currently includes Blue, Grape, Mango Passionfruit, and Lemonade Iceblock. The new flavor will be sold in Suntory’s signature one-litre PET bottle, ensuring consistency with the rest of the product line.

    Lisa Pearce, the Head of Marketing at Suntory Beverage & Food Oceania, expressed her excitement about the new release. “Pineapple Punch delivers on what Maximus does best: Big, bold Aussie flavours”, she said.

    Driving Sales Through Limited Releases

    Pearce also highlighted the strategic aspect of this launch, stating that the limited-time release is designed to both delight loyal fans and entice new customers. Additionally, she noted that the launch presents a valuable opportunity for their retail partners. The aim is to create a high-impact sales strategy and increase foot traffic during the important summer period.

    Availability And Pricing

    Initially, Maximus Pineapple Punch will be available exclusively in Ampol stores, starting this month, at a recommended retail price of $6.28. From November, the product will roll out nationally, remaining in stores until March of the following year.

    Questions & Answers

    What new flavor is being added to the Maximus sports drink range?
    Suntory is adding a new flavor, Pineapple Punch, to its Maximus sports drink range.

    What is the purpose of this limited-time release?
    The limited-time release of Pineapple Punch is intended to excite loyal customers, attract new ones, and provide a sales boost for retail partners during the summer period.

    Where and when will Maximus Pineapple Punch be available?
    The drink will initially be available exclusively in Ampol stores from this month. From November, it will be available nationally and remain in stores until March of the following year.

  • Nestlé Makes Bold Move: CEO Dismissed Due to Workplace Relationship Scandal

    Nestlé Makes Bold Move: CEO Dismissed Due to Workplace Relationship Scandal

    Nestlé, the powerhouse behind iconic brands like Nespresso and KitKat, has initiated a leadership shakeup following the dismissal of Laurent Freixe as CEO. This significant change comes after an inquiry into an undisclosed romantic relationship between Freixe and a subordinate, which was found to contravene Nestlé’s code of business conduct.

    A New Era at Nestlé Begins

    With impressive swiftness, Nespresso CEO Philipp Navratil has stepped into the role of CEO, assuming leadership of the multinational food and beverage giant. The board acted decisively, launching its investigation under the watchful eye of chairman Paul Bulcke and lead independent director Pablo Isla, with support from outside legal counsel. Bulcke expressed gratitude for Freixe’s contributions, emphasizing that the company’s values must remain at the forefront. “This was a necessary decision. Nestlé’s values and governance are strong foundations of our company,” he stated.

    A Veteran’s Journey at Nestlé Comes to a Close

    Freixe’s tenure at Nestlé began in France back in 1986. He played a vital role in guiding the company through tumultuous periods, including the subprime and euro crises. Before his recent promotion to CEO, he led the firm’s Latin America division and was appointed to the top job just last September, tasked with tackling sluggish consumer spending affecting Nestlé’s food and household goods.

    As concerns grew over Nestlé’s performance, evidenced by a nearly 25% dip in its share price over the past year, the company seeks stability amid a tricky economic landscape. Nestlé shares managed a slight gain, closing up 0.13% at 75.49 Swiss francs on the Swiss stock exchange, but the pressure remains on to deliver strong results.

    Profit Slump Signals Urgency for Change

    In late July, Nestlé announced a disappointing 10.3% decline in first-half profits, impacted heavily by lackluster consumer spending in China, despite passing on rising cocoa and coffee prices to its customers. As Navratil embarks on this new chapter, he is determined to steer the company toward recovery and growth. “The board is confident that he will drive our growth plans forward and accelerate efficiency efforts,” Bulcke affirmed, while Navratil embraced the company’s strategic vision and vowed to “drive the value creation plan with intensity.”

    Navratil’s journey with Nestlé spans over two decades, beginning in 2001. He has worn many hats, including leading the coffee and beverage sector in Mexico from 2013 to 2020, prior to becoming chief executive of Nespresso last July. The world will be watching closely as he takes the reins at Nestlé, but it’s hard not to wonder: will this experienced executive brew the perfect recipe for success amid the complexities of modern retail?

    Freixe’s dismissal isn’t an isolated incident in the corporate world. He joins a notable list of executives who have faced similar fates for relationships deemed inappropriate within their organizations. The likes of Bernard Looney at BP and Steve Easterbrook at McDonald’s have experienced the swift exit in the wake of such breaches, reminding the industry that corporate governance is still very much in focus.

    Questions & Answers

    What led to Laurent Freixe’s dismissal from Nestlé?
    Freixe was dismissed following an investigation into an undisclosed romantic relationship with a subordinate, which violated Nestlé’s code of business conduct.

    Who is taking over as CEO of Nestlé?
    Philipp Navratil, previously the CEO of Nespresso, has been appointed as the new CEO of Nestlé.

    What challenges is Nestlé currently facing?
    Nestlé is grappling with sluggish consumer spending in key markets such as China and has reported a 10.3% decline in first-half profits, prompting a need for rapid recovery and growth strategies.

  • Yum China Unveils ‘Fried Chicken Brothers’: A New Twist On Fast-food With Chinese And Korean Flavors

    Yum China Unveils ‘Fried Chicken Brothers’: A New Twist On Fast-food With Chinese And Korean Flavors

    Yum China, KFC’s operator in the country, has discreetly introduced a fresh pilot concept by the name of Fried Chicken Brothers, further diversifying its localized sub-brands.

    The pilot currently runs two compact stores in Shanghai, each approximately 20sqm in size, with a particular focus on takeaway and delivery services.

    The innovative brand presents two unique culinary adventures. One specializes in Chinese-style fried chicken, while the other embraces the distinct flavors of Korean-style fried chicken.

    The Chinese menu features dishes inspired by regional flavors, such as chicken spiced with Litsea cubeba, crispy chicken skin paired with chili, and chicken racks with a unique taste of Yanbian barbecue kimchi. The Korean-style shop, on the other hand, emphasizes boneless fried chicken, served with an array of bold sauces including creamy cheese, amber sweet and spicy, and honey mustard sauces.

    Based on user reviews, the average spending per person is estimated around 30 RMB (approximately US$4.12), positioning Fried Chicken Brothers as a cost-effective and flavor-rich alternative in the fast-food fried chicken market.

    This new addition expands Yum China’s increasing portfolio of KFC sub-brands in the country, which further includes KCoffee and Kpro. This move aligns with the company’s broader strategy of diversifying its offerings to cater to younger consumers and adapt to the ever-changing local tastes.

    Questions & Answers

    What is Yum China’s new pilot concept?
    Yum China has introduced a new pilot concept called Fried Chicken Brothers, which offers Chinese and Korean-style fried chicken.

    What does the Fried Chicken Brothers menu offer?
    The menu offers two distinct culinary experiences. The Chinese-style menu features dishes like Litsea cubeba-spiced chicken and Yanbian barbecue kimchi-flavoured chicken racks. The Korean-style menu focuses on boneless fried chicken with a variety of sauces.

    What is the positioning of Fried Chicken Brothers in the market?
    As per user reviews, the average spending per person is around 30 RMB (US$4.12), thus positioning Fried Chicken Brothers as an affordable and flavor-rich alternative in the fast-food fried chicken market.

  • Chinese Sweet Potatoes with Durian Flavor Fascinate Vietnamese Shoppers, Despite Higher Price Tag

    Chinese Sweet Potatoes with Durian Flavor Fascinate Vietnamese Shoppers, Despite Higher Price Tag

    In a curious culinary twist taking Vietnam by storm, “durian sweet potatoes” have captured the attention of food lovers across social media platforms since July. Vendors tout these unique spuds for their creamy texture and sweet flavor reminiscent of the notoriously pungent durian.

    Hong Anh, a food store owner in Ho Chi Minh City’s District 12, recalls her initial skepticism when suppliers first introduced her to the product, especially given its steep price point. However, after sampling the sweet potatoes herself, she discovered their chewy, delectable nature that “melts” in the mouth, prompting her to add them to her offerings.

    “In just half a month, I sold about 300 kilograms,” she noted, highlighting the appeal of the potatoes’ eye-catching appearance and uniform size. Customers are also drawn to them due to their intriguing name, creating a buzz in the market.

    Currently, Anh retails these sweet potatoes at VND96,000 (US$3.64) per kilogram—double the price of top domestic varieties and three times that of standard sweet potatoes. While these tubers are a staple in Vietnam, cultivated extensively in regions like the Central Highlands and Mekong Delta, they broke the bank when it comes to consumers checking their wallets.

    Last year, sweet potato exports brought in nearly VND900 billion, with farm-gate prices hovering between VND14,000 and VND16,000 per kilogram and retail prices ranging from VND25,000 to VND50,000. The growing demand for the Chinese variety has seen distributors like To Khuyen from Lao Cai Province, near the China border, importing thousands of boxes within just a month. Initially priced over VND100,000 per kilogram due to low supply, she has now lowered prices by 15%. “Since early July, these sweet potatoes have been flying off the shelves. Wholesalers snap them up as soon as the trucks arrive,” she shared.

    Beyond their enticing flavor, the potatoes boast thick, easy-to-peel skin and come packaged in chic cardboard boxes—making them a hit for consumers looking for both taste and aesthetics. Despite this, they remain somewhat of a niche offering. Representatives from the Thu Duc and Hoc Mon wholesale markets in Ho Chi Minh City remarked they haven’t introduced these varieties yet, focusing solely on local options.

    As excitement builds around these sweet potatoes, some market sellers urge caution regarding new products with unclear origins. According to the Guangdong Provincial Information Portal in China, these sweet potatoes belong to a variety called Xinxiang, or mini sweet potatoes, which have been cultivated since 2007 in southern provinces like Zhejiang and Guangdong, with farmers receiving between CNY13-16 ($1.82-2.24) per kilogram.

    Questions & Answers

    How are “durian sweet potatoes” different from regular sweet potatoes?
    These sweet potatoes are known for their chewy texture and sweet flavor, resembling that of durian, which sets them apart from traditional varieties.

    Why are these sweet potatoes priced significantly higher than local varieties?
    Their pricing reflects a combination of factors, including their imported nature, unique culinary qualities, and increasing demand among consumers curious about novel products.

    What challenges do consumers face with these new sweet potatoes?
    Some market sellers express concerns about the origins of these imported sweet potatoes, prompting consumers to be cautious when trying new and unfamiliar products.

  • Berjaya Food Reports Rising Losses: Starbucks Malaysia’s Struggles Amid Middle East Conflict

    Berjaya Food Reports Rising Losses: Starbucks Malaysia’s Struggles Amid Middle East Conflict

    Berjaya Food, a Malaysia-based company, has recently reported a significant increase in losses and a decrease in sales for both their fourth quarter and the entire fiscal year. Berjaya Food, which operates Starbucks Coffee in Malaysia and Brunei, along with Kenny Rogers Roasters and Paris Baguette in Malaysia, experienced reduced sales due to a decrease in store numbers.

    Quarterly Report

    The revenue for the group, for the quarter ending on June 30, experienced a decrease of 11 per cent compared to the previous year, settling at RM115.8 million (US$27.4 million). This reduction is mainly attributable to the decrease in the number of store locations. However, the management has noted a slight increase in sales compared to the third quarter. This increment is primarily due to an improved sales performance from Starbucks Malaysia.

    In this quarter, the loss before tax increased from RM42.6 million to RM183.7 million. The primary reason for this increase was the impairment of property, plant, and equipment (PPE) and right-of-use (ROU) assets linked to non-performing stores.

    Annual Report

    For the entire fiscal year, the revenue dropped by 36 per cent, amounting to RM476.7 million. This drop is linked to the ongoing sentiment surrounding the Middle East conflict, which has affected market dynamics and altered customers’ purchasing behaviours.

    The pre-tax loss for the year broadened from RM89 million to RM288.7 million. This loss was due to the necessary impairment provision to PPE and ROU assets, resulting from the downsizing of Starbucks Malaysia’s operations.

    Questions & Answers

    What were the main reasons for the loss in Berjaya Food’s fourth quarter and fiscal year?
    The primary reasons were the impairment of property, plant, and equipment (PPE) and right-of-use (ROU) assets of non-performing stores, and also the downsizing of Starbucks Malaysia’s operations.

    Did Berjaya Food see any improvement in the fourth quarter compared to the third quarter?
    Yes, sales were slightly higher in the fourth quarter compared to the third, primarily due to improved sales performance at Starbucks Malaysia.

    How did the Middle East conflict affect Berjaya Food’s annual results?
    The ongoing conflict in the Middle East has influenced customers’ spending patterns and affected market dynamics, which contributed to the significant drop in the annual revenue.

  • Domino’s Pizza China Reports Record Half-year Revenue, Loyalty Program Membership Soars

    Domino’s Pizza China Reports Record Half-year Revenue, Loyalty Program Membership Soars

    Domino’s Pizza in China has announced an impressive 27% surge in its half-yearly revenue, reaching RMB2.59 billion (US$363.2 million). This continued the firm’s trend of double-digit growth year on year.

    Impressive Profit Growth

    The company’s net profit growth was also highly commendable, registering an increase of 504.4% to RMB65.9 million. Additionally, the adjusted net profit saw a significant increase of 79.6% year on year, reaching RMB91.42 million.

    Loyalty Program Boost

    The first half of the year saw 30.1 million people signing up for Domino’s China’s loyalty program, representing a substantial 55.2% increase compared to the previous year. The revenue generated by the loyalty members constituted an increased percentage of the company’s total revenue, moving from 63.6% to 66%. This development indicates a growing scale, and a deepening engagement and loyalty from the customers.

    Expanding Store Network

    Since the third quarter of 2017, Domino’s China has been rapidly expanding its store network through its ‘go-deeper, go-broader’ approach. This has led to the company increasing its store count from merely 100 stores to 1198 stores spread across 48 cities on the Chinese mainland.

    Domino’s attributes its successful expansion to stringent site evaluation standards. The company ensures that each new store meets the requirements for long-term profitability. This has helped the firm maintain its store closure rate below the industry benchmarks.

    Questions & Answers

    What was the increase in Domino’s Pizza China’s half-year revenue?
    The half-year revenue of Domino’s Pizza China increased by 27%, amounting to RMB2.59 billion (US$363.2 million).

    How many people signed up for Domino’s China’s loyalty program in the first half of the year?
    In the first half of the year, 30.1 million people signed up for Domino’s China’s loyalty program.

    How many stores does Domino’s China currently have?
    Domino’s China currently has 1198 stores across 48 cities on the Chinese mainland.

  • Coffee Industry Seizes Opportunities as Global Prices Continue to Climb

    Coffee Industry Seizes Opportunities as Global Prices Continue to Climb

    In a striking reflection of the challenges posed by climate change, coffee prices surged globally by approximately 40% in 2024, as highlighted by a recent study from the Food and Agriculture Organization. This surge is largely attributed to adverse weather conditions affecting production in key coffee-producing countries such as Brazil, Colombia, and Indonesia, while demand escalates in Europe, the US, and Asia.

    Vietnam’s Coffee Export Boom

    Amid this global upheaval, Vietnam’s coffee sector appears to be capitalizing on the situation, with export turnover exceeding $560 million last month alone. This impressive figure has propelled the total export value for the first seven months of the year to a remarkable $3.6 billion, marking a year-on-year growth of 20%, according to the Ministry of Agriculture and Environment. The major driver behind this thriving export performance is the spike in global coffee prices.

    Seizing the Moment in a Competitive Market

    As the world’s leading exporter of Robusta coffee, Vietnam holds an estimated 40% share of the global market. Nguyen Nam Hai, the president of the Vietnam Coffee Cocoa Association (Vicofa), noted that the international coffee landscape has never appeared more promising. High prices and growing demand, paired with Vietnam’s stable supply, put the country in a fortuitous position to expand its market share.

    Deep Processing: A Game Changer?

    However, to fully leverage this opportunity, Vietnam must shift its focus toward deeper processing. Hai emphasized that relying solely on raw bean exports limits potential gains. While export values are climbing, the structural makeup of Vietnam’s coffee products reveals considerable shortcomings. Currently, only 12-15% of total exports fall into the deep-processing category, which includes roasted, instant, and specialty coffee — a figure that pales in comparison to Brazil and Colombia’s 30-40% ratio.

    Le Hoang Diep Thao, founder and CEO of TNI King Coffee, weighed in on this issue, noting that investing in deep processing can significantly enhance product value. Yet, she cautioned that the initial investment can be daunting, particularly for instant coffee technology, requiring hundreds of billions of Vietnamese dong. Not all companies possess the financial capacity for such ventures.

    Coping with Technological and Branding Hurdles

    Technological barriers and branding challenges further complicate Vietnam’s transition toward deep processing. While substantial investment has been made by major players like Vinacafé, Trung Nguyên, and Nestlé, many small and medium-sized enterprises struggle to keep pace. While Vietnam is recognized for its production volumes, household names in coffee evoke thoughts of Starbucks, Lavazza, and Nestlé, making it tough for Vietnamese brands to penetrate the premium segment.

    Agricultural economist Dinh Van Thanh cautioned that if Vietnam persists in its reliance on raw exports, it risks being reduced to merely an “ingredient factory” for larger corporations. A robust long-term strategy aimed at investment in deep processing and enhancing the national coffee brand on the global stage is imperative.

    Emerging Positive Signals

    Despite the challenges, there are encouraging developments within the industry. Trung Nguyên Legend is working to expand its instant coffee exports to the Middle East and Eastern Europe, while Vinacafé is honing its focus on the ASEAN market. Meanwhile, enterprising start-ups in Lam Dong and Gia Lai are launching specialty coffee brands aimed at markets such as Japan and South Korea. In a clever twist, rather than merely selling raw beans, these innovators are partnering with companies to process roasted coffee for direct sale in South Korea, with prices that can be double that of unprocessed beans, ultimately benefiting farmers.

    Strategic Recommendations for Growth

    Experts have outlined three strategic areas for the Vietnamese coffee industry to capitalize on high prices and broaden export potential. First, there is a compelling need for investment in deep processing technology. The government should consider implementing preferential credit policies for businesses that invest in production lines for instant and specialty coffee. Second, building a national coffee brand akin to Thailand’s Jasmine rice or Colombia’s Arabica coffee is critical for establishing a strong global presence. Lastly, targeting emerging markets such as the Middle East, South Asia, and Eastern Europe, where coffee demand is rapidly increasing, could provide a fertile ground for expanding the reach of processed Vietnamese coffee.

    Questions & Answers

    How has climate change affected global coffee prices?
    A recent study revealed that global coffee prices increased by about 40% in 2024, largely due to unfavorable weather conditions that impacted production in key coffee-producing countries.

    What role does Vietnam play in the global coffee market?
    Vietnam is the largest exporter of Robusta coffee, holding about 40% of the global market share. The country is now focusing on deepening its processing capabilities to enhance its market position.

    What strategies are being suggested for the growth of Vietnam’s coffee sector?
    Experts recommend investing in deep processing technology, building a national coffee brand, and targeting emerging markets like the Middle East and Eastern Europe to capitalize on growing coffee demand.

  • Allegro Funds Invests In Be Campbell: A Strategic Move To Modernise And Expand Operations

    Allegro Funds Invests In Be Campbell: A Strategic Move To Modernise And Expand Operations

    BE Campbell, an Australian pork processing company, has recently obtained an investment from Allegro Funds as part of their growth strategy. The Sydney-based, third-generation family business employs over 750 individuals and provides services to supermarkets, butchers, foodservice operators, and distributors throughout Australia.

    Investment for Expansion

    The capital acquired from Allegro Funds will be utilized to modernise BE Campbell’s processing operations, diversify its product offerings, and enhance its commercial platform. Ted Campbell, the company’s chairman, expressed that the investment is seen as an avenue to fortify the company whilst preserving its legacy and long-standing relationships within the supply chain.

    “Over the past 55 years, our business has seen consistent growth,” he said. “We are eager to continue working closely with our dedicated growers, suppliers, customers, and staff to deliver top-tier products to Australian consumers.”

    Stake Ownership

    Allegro Funds will hold the majority stake in BE Campbell. However, the Campbell family will maintain a significant but undisclosed stake and continue to participate in the company’s management.

    Jeffrey Largier, Managing Director of Allegro Funds, expressed their excitement at the prospect of the partnership with Ted Campbell, the Campbell family, and the entire BE Campbell team. According to Largier, BE Campbell’s established market position and strong track record were key attractors for the investment firm.

    Questions & Answers

    What will the investment from Allegro Funds be used for within BE Campbell?
    The investment will be used to modernise BE Campbell’s processing operations, diversify its product offerings, and expand its commercial platform.

    Who will hold the majority stake in BE Campbell post-investment?
    Allegro Funds will hold the majority stake in the company post-investment.

    Will the Campbell family remain involved in the company’s management post-investment?
    Yes, the Campbell family will retain a significant stake and continue participating in the company’s management.

  • Heinz Unveils Novel Fried Chicken Sauce In Partnership With Gami Chicken

    Heinz Unveils Novel Fried Chicken Sauce In Partnership With Gami Chicken

    Heinz has recently launched their novel Fried Chicken Sauce, which is now available in supermarkets and for a brief duration, through a partnership with the popular Korean fried chicken outlet, Gami Chicken.

    A New Addition to the Condiment Aisle

    The newly introduced sauce is characterized by its bold, creamy, sweet, and spicy flavor, specially crafted to enhance the taste of fried chicken. This addition to the condiment selection is expected to bring a distinctive flavor profile to the dining table.

    Partnership with Gami Chicken

    In conjunction with the sauce’s debut, Heinz established a collaboration with Gami Chicken restaurants in Victoria, NSW, SA, and WA. For a limited period, patrons have the option to order a combo meal that includes boneless fried chicken, chips, and the new Heinz Fried Chicken Sauce.

    Jun Lee, the founder of Gami Chicken, spoke highly of the latest product. In his words, the new sauce from Heinz was a standout in a saturated market and has been a pleasant surprise in taste and quality. Lee also expressed his excitement to be involved in a launch that celebrates bold and delicious flavors.

    Availability and Pricing

    Heinz Fried Chicken Sauce retails for an RRP of $4.80 for a 295ml bottle and is currently available at Coles. The distribution of the product will broaden to include Woolworths and Metcash stores from September 29 onwards.

    Questions & Answers

    What is the flavour profile of the new Heinz Fried Chicken Sauce?
    The sauce has a unique combination of bold, creamy, sweet, and spicy flavours.

    Where can consumers find Heinz’s new Fried Chicken Sauce?
    The sauce is currently available at Coles and will soon be distributed to Woolworths and Metcash stores from September 29.

    What does the limited-time partnership with Gami Chicken entail?
    As part of the partnership, for a limited time, customers at Gami Chicken restaurants can order a combo meal that includes boneless fried chicken, chips, and the new Heinz Fried Chicken Sauce.

  • Nestle Halts Production Of Vegan Kitkat Amid Rising Costs And Declining Sales

    Nestle Halts Production Of Vegan Kitkat Amid Rising Costs And Declining Sales

    Nestle, the multinational food and beverage company, has announced its decision to cease production of its vegan KitKat range after a four-year span. This decision is attributed to the escalating production expenses and declining sales figures.

    Background and Production Details

    The vegan KitKat, identified as KitKat V, was conceived at Nestle’s confectionery research and development center located in the UK. The product was initially launched in 2021 to serve as a plant-based substitute for the globally popular classic chocolate bar. However, the company disclosed that the manufacturing of this product necessitated the dedication of exclusive facilities, which escalated the operational costs considerably.

    As of now, the company has halted all production lines for the global Vegan KitKat version. A representative from Nestle shared this news, further highlighting that the remaining stock of this product will continue to be available in Tesco and Sainsbury’s stores until the current stock is exhausted.

    Global Trends for Plant-Based Products

    Nestle’s decision aligns with the observed deceleration in the demand for plant-based products worldwide. Market analysts have noticed a shift in consumer interest from processed alternatives to fresh produce. This change is propelled by consumers questioning the health benefits of plant-based options, which were previously regarded as healthier alternatives.

    The future of the vegan KitKat brand remains clouded in uncertainty. Nestle has not yet disclosed whether it might reconsider the revival of this brand should there be a resurgence in demand.

    Questions & Answers

    What led to Nestle discontinuing its vegan KitKat range?
    High production costs and diminishing sales were the primary factors that led Nestle to discontinue its vegan KitKat range.

    What was the vegan KitKat range?
    The vegan KitKat, labeled as KitKat V, was a plant-based alternative to the traditional chocolate bar. It was developed at Nestle’s research and development center in the UK.

    Is there a possibility for the revival of the vegan KitKat range?
    Currently, Nestle has not indicated any plans for the revival of the vegan KitKat range. However, the potential for reconsideration exists if there is a substantial increase in demand.

  • Chagee’s Revenue Soars Amid Expansion, Despite Significant Profit Dip

    Chagee’s Revenue Soars Amid Expansion, Despite Significant Profit Dip

    The second quarter of the financial year saw Chinese milk tea chain Chagee experiencing a double-digit increase in revenue, largely due to its network expansion. However, this growth was accompanied by a notable drop in profit.

    Financial Highlights

    Chagee, which is listed on Nasdaq, recorded a 10.5 per cent rise in net revenues to RMB3.331 billion (US$465.1 million) for the quarter ending on June 30. The company’s teahouse network witnessed substantial growth of 40 per cent, reaching 7038 locations.

    The total gross merchandise value (GMV) also saw an increase, rising by 15.5 per cent to RMB8.103.1 billion. The GMV in overseas markets experienced a significant surge of 77 per cent. However, the same-store GMV witnessed a downturn, falling by 23 per cent following a 38 per cent growth in the same period last year.

    Chagee’s GAAP net income saw a steep decrease of 87.7 per cent to RMB77.2 million. However, the non-GAAP net income, which factors in share-based compensation expenses amounting to RMB552.5 million, saw a marginal rise of 0.1 per cent to RMB629.8 million.

    Leadership Changes and Future Plans

    During the same quarter, Chagee made key leadership appointments to boost its expansion capabilities in North America. These included the appointment of Emily Chang as the Chief Commercial Officer and Aaron Harris as the Chief Development Officer for the region.

    Company management is optimistic about its comprehensive international expansion strategy. This strategy is expected to set the company on a path of sustainable growth. There are proactive strategies already in place for key regions like Indonesia, Thailand, and North America. Additionally, the company has plans to venture into Japan and Korea in the coming year.

    Questions & Answers

    What changes were observed in Chagee’s revenue and profit in the second quarter?
    Chagee witnessed a double-digit rise in revenue, largely due to the expansion of its network. However, its profit saw a significant drop.

    What significant appointments were made by Chagee in the second quarter?
    Chagee appointed Emily Chang as the Chief Commercial Officer and Aaron Harris as the Chief Development Officer for the North American region.

    What are the company’s future expansion plans?
    Management has comprehensive international expansion strategies in place. There are plans for expansion in key regions including Indonesia, Thailand, and North America, and the company intends to enter the Japanese and Korean markets next year.

  • Carlsberg Vietnam Boosts Phu Bai Brewery Capacity for a Greener, Sustainable Future

    Carlsberg Vietnam Boosts Phu Bai Brewery Capacity for a Greener, Sustainable Future

    The recent inauguration of Carlsberg Vietnam’s expanded brewery marks a significant leap in the region’s brewing landscape. Andrew Khan, Managing Director of Carlsberg Vietnam, emphasizes that this expansion transcends mere scale; it is a multifaceted endeavor focused on innovation, sustainability, and community impact, fully aligned with Carlsberg’s global Accelerate SAIL strategy.

    What does this expansion signify for your company?

    Khan highlights that the new facility in Phu Bai is now Carlsberg’s largest beer production site in Asia and among the most productive within the Carlsberg Group. Leveraging advanced technology and automation, this site is engineered not only to boost output but also to ensure sustainable growth by enhancing product quality and fortifying the supply chain. “Ultimately, we’re not just increasing volume; we’re creating lasting value for our consumers and the communities we serve,” he explains. The commitment to quality is evident in the accolades won by local brands Huda and Halida, which were awarded Gold Quality Awards from Monde Selection in 2024.

    This expanded facility is well-positioned to satisfy the demand for Carlsberg’s diverse portfolio, which ranges from global premium labels like Carlsberg and 1664 Blanc to beloved local favorites Halida and Huda, the latter of which has been a regional staple for over 35 years.

    What do you hope this expansion will achieve for your business and the community?

    Khan believes this expansion empowers Carlsberg Vietnam to meet the increasing demands of the market while executing their commercial growth strategy with enhanced efficiency and flexibility. More than just a business milestone, he envisions it as a transformative moment—an opportunity to operate with increased innovation and stronger commitments to sustainability and community engagement. “We will measure success not just in production volumes, but in how we lead, engage, and uphold our values,” he asserts.

    What are your next steps for Carlsberg Vietnam in light of this expansion?

    “While the expanded capacity is a significant advantage, what matters most is how we leverage it,” Khan says. Priorities include operating with distinction, maintaining close ties with consumers, and pursuing sustainable, community-oriented growth. This philosophy underlines their mission to “brew for a better today and tomorrow.”

    How does the Phu Bai expansion reflect Carlsberg Vietnam’s environmental commitments?

    Khan emphasizes that sustainability is woven into the very fabric of this new site. The Phu Bai Brewery runs entirely on iREC-certified renewable electricity and utilizes a biomass steam system, effectively eliminating carbon emissions from production. The facility has also implemented state-of-the-art water conservation technologies, achieving a remarkable water usage rate of just 2.09 hl/hl by 2024—one of the lowest in Vietnam. Looking forward, Carlsberg Vietnam aims for zero waste to landfill by 2025, a reduction of water usage to 2.0 hl/hl by 2026, and to achieve net-zero carbon emissions in production by 2028, thus supporting Vietnam’s ambition of net-zero emissions by 2050.

    What role does innovation play in this expansion, beyond the technological aspect?

    Khan asserts that innovation is not confined to tech; it’s about cultivating a mindset that empowers staff. The brewery boasts Vietnam’s fastest packaging lines, enhanced by real-time analytics that boost efficiency. Beyond automated advancements, the new brewing line also conserves water and energy by 20% and 15% respectively. “But the true essence of innovation lies not just in machines; it’s in how people interact with them,” he notes.

    How does Carlsberg ensure that innovation is inclusive and considerate of all staff?

    Khan believes in co-creating the future by engaging employees in the transformation journey early on. Innovations like AI-enabled forklifts and redesigned traffic systems have been developed with input from those directly on the floor. “Our investment in training and health ensures everyone has the support they need to adapt,” he explains.

    How has the expansion enhanced on-site safety and working conditions?

    “Safety has always been our prime directive,” Khan states. With the expansion, new facilities were constructed, complete with modern locker rooms and canteens, while traffic patterns have been redesigned for better pedestrian safety. Their fleet of forklifts is now electric and equipped with AI systems to monitor safety risks in real-time. The commitment to safety is not just regulatory; it’s a cultural mindset, with over 1.4 million recorded safe working hours during construction.

    How do you envision Carlsberg Vietnam’s role in the local economy and community going forward?

    Khan is optimistic about the future, asserting that commercial growth will boost contributions to state revenues and support local socio-economic development. “We aim to grow alongside Vietnam—not just in market share, but by creating shared value with our communities,” he states, highlighting initiatives like the Fresh Water for Beloved Central program that has provided clean water access to thousands over the past seven years.

    As a leader, what does this achievement mean to you personally?

    Reflecting on this milestone, Khan notes a profound sense of pride—not merely for the scale of the achievement, but for how it was accomplished: safely, sustainably, and with a dedicated local workforce at its core. “This journey reminds me that when we lead with purpose and trust our people, extraordinary outcomes become possible,” he concludes.

    Questions & Answers

    What key aspects distinguish Carlsberg Vietnam’s Phu Bai expansion?
    The expansion focuses not only on increasing production capacity but also on fostering sustainable practices, enhancing product quality, and contributing meaningfully to local communities.

    How does the new brewery contribute to environmental sustainability?
    Phu Bai Brewery operates on renewable energy, employs innovative water-saving technologies, and aims for net-zero carbon emissions in production by 2028, underscoring the commitment to environmental stewardship.

    What is the overarching vision for Carlsberg Vietnam post-expansion?
    The company aims to leverage the new facility to enhance operational excellence, strengthen consumer connections, and grow in a way that prioritizes sustainability and community impact.

  • Tim Hortons China Sees Q2 Recovery, Cites New Strategy And Franchise Growth As Key Drivers

    Tim Hortons China Sees Q2 Recovery, Cites New Strategy And Franchise Growth As Key Drivers

    TH International Limited, the company responsible for operating Tim Hortons coffee shops in China, has reported a slight recovery in the second quarter. This recovery has helped to counterbalance the economic strain resulting from store closures and decreased revenue from company-operated outlets.

    Financial Performance

    The system sales experienced a 1.4 percent increase since last year, reaching a total of $57.2 million. Despite this growth, total revenues decreased by 4.9 percent, amounting to $48.7 million. However, the company recorded a positive adjusted EBITDA of $300,000 and a reduced adjusted net loss of 16.2 percent, which amounts to $5.5 million.

    The company’s CEO, Yongchen Lu, stated the company’s “Coffee + Freshly Prepared Food” strategy as the driving force behind the improved results. New product offerings led to an increase in food revenue by 8.6 percent from last year. Consequently, the contribution of food revenue to system sales rose to a record 35.2 percent.

    Albert Li, the CFO, pointed out the efficiency enhancements in the company’s operations. The costs of food, packaging, and labor dropped as a percentage of store revenues. He attributed the improved financial performance to the refinement of store unit economics and operational efficiencies at both store and corporate levels.

    Growth and Challenges

    During the quarter, the company introduced 40 made-to-order stores while discontinuing 49 non-made-to-order outlets, mainly smaller Tim Hortons Express units. Despite this, the contribution from company-operated stores dropped to $3.8 million, a decrease from the previous year. This decrease can be attributed to store consolidation and declining same-store sales.

    Franchising proved to be a successful venture. Revenues from franchised stores increased by 50.7 percent, reaching $9.4 million. The franchise network expanded from 333 to 449 locations. In addition, other revenues, including sub-franchise and retail businesses, more than doubled compared to last year.

    Despite a net loss of $10.6 million, the management remains optimistic. They believe the operational enhancements and an improved food mix put the company in a position for steady growth.

    Questions & Answers

    What was the company’s strategy that drove its stronger results?
    The company employed a “Coffee + Freshly Prepared Food” strategy that particularly improved results through new product offerings.

    How did the company improve its financial performance?
    The company refined store unit economics and enhanced operational efficiencies at both the store and corporate levels.

    What changes occurred in the company’s franchising operations?
    There was a revenue increase of 50.7 percent from franchised stores. The franchise network also expanded to 449 locations from 333 in the previous year.