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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.

  • How ZUS Coffee become Malaysia’s largest coffee chain in 4 years

    How ZUS Coffee become Malaysia’s largest coffee chain in 4 years

    ZUS Coffee, a Malaysian firm that began as a small kiosk in Kuala Lumpur, took just over four years to become the biggest coffee chain operator in the country.

    The firm quickly expanded to surpass U.S. giant Starbucks in a market with over 3,300 branded coffee outlets, a figure expected to grow 4-5% this year, according to global coffee industry research platform World Coffee Portal.

    It launched at the end of 2019 with a 200-square-foot (18-square-meter) kiosk in the Kuala Lumpur City Center area.

    The brand positioned itself in the mid-priced segment, which was largely untapped at the time, aiming to make specialty coffee a daily necessity rather than a luxury.

    One of its main draws is its frequently updated menu, which features unique drinks like the Ice Shaken Osmanthus Orange Espresso, Sakura Rose Frappe, and Cheese Crème Latté.

    But this was not the only factor setting it apart from other options in Malaysia’s coffee market as it is also known for its tech-driven approach.

    The company digitized its operations and had an app at launch that facilitates online ordering, pick-up and delivery, with the aim to shake up the market by focusing on digital orders and fast service.

    The app also collects data on customers’ tastes and preferences, which is used to develop new products or improve existing items.

    The company had a rough start as cashless payments and online coffee ordering were slow to catch on in Malaysia.

    However, the Covid-19 pandemic hit a few months after the startup launched, transforming the local coffee landscape. Delivery services and contactless payments quickly became standard, making ZUS’ focus on technology highly successful.

    “We became profitable just 10 months after we launched. Timing was crucial – it is not just the product or the team, but being in the right place at the right time,” Venon Tian, the firm’s COO and co-founder, told Nikkei Asia.

    Tian’s ambitious plans for his business would see it challenge international brands in the local market.

    “Hopefully we will be able to surpass the bigger boys in town soon and be something for Malaysians to be proud of as well,” Tian told The CEO Magazine in 2022, when the chain had just over 150 stores.

    As its popularity and presence grew over the years, the firm became the largest coffee chain operator in Malaysia. It has 566 stores as of September 2024, surpassing Starbucks, which is in second place with 411 outlets.

    Its revenues jumped from 15.7 million ringgit (US$3.5 million) in 2021 to over 200 million ringgit in the fiscal year ending June 30, 2023, while its net profit surged from 134,000 ringgit to 10.2 million ringgit during the same period.

    The chain is now looking to expand into the international market. It has already opened more than 40 stores in the Philippines since entering the market last year after Filipino billionaire Frank Lao acquired a 30% stake in the company.

    It opened its first store in Singapore in October and launched in Brunei late last month with an outlet at the Setia Point shopping center in the capital city of Bandar Seri Begawan.

    Tian said at a conference hosted by Tech in Asia earlier this year that ZUS would be expanding to Pakistan by the first half of 2025. He expects its revenues and net profit to reach 600 million ringgit and 30 million ringgit, respectively, this year.

    He told Nikkei Asia that the firm aims to become a “national champion,” comparing it to Malaysian airline AirAsia. “Who knows, we could be the AirAsia of coffee – a Southeast Asian brand recognized globally.”

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  • Starbucks employees to receive 60% bonus amid firm’s worst year since 2020

    Starbucks employees to receive 60% bonus amid firm’s worst year since 2020

    Many corporate workers at U.S. coffee chain Starbucks will get just 60% of their total bonuses for the 2024 fiscal year amid the company’s first annual sales decline since 2020.

    The coffee giant’s poor performance in the fiscal year, which ended on September 29, cut into the overall bonus for employees who met their personal goals, a source familiar with the matter said.

    Bonuses for most employees are determined based on both individual performance and company results, with the latter calculated from revenue and operating income, a separate document shows.

    They are typically paid in December and, in the U.S., range from 5% of base pay for non-managerial employees to 45% for senior vice presidents.

    The reduced bonuses reflect the challenges Starbucks has faced this year as consumers, hit by widespread inflation, scaled back on their lattes.

    Its quarterly and yearly performances, reported late last month, show disappointing sales in its two largest markets, the U.S. and China, which fell short of analysts’ expectations.

    For the third consecutive quarter, Starbucks saw a decline in same-store sales, with a 7% drop this quarter—the steepest since the Covid-19 pandemic, according to CNBC.

    Net income attributable to the company for the fourth quarter was US$909.3 million, or 80 cents per share, down from $1.22 billion, or $1.06 per share, a year earlier. Net sales also decreased by 3% year-on-year to $9.07 billion.

    This was Starbucks’ first quarter under new CEO Brian Niccol, who joined the company in September to turn the business around.

    “It is clear we need to change our strategy to win back customers fundamentally,” he said in the report. “We have a clear plan and are moving quickly to return Starbucks to growth.”

    For the full fiscal year, global comparable store sales dropped by 2%, largely due to a 4% decline in comparable transactions, as shown in the firm’s report.

    This marked the second drop in the last 15 years, with the first occurring in 2020 due to Covid-19 restrictions.

  • Shrimp exports surge 13% in 10 months

    Shrimp exports surge 13% in 10 months

    Vietnam’s shrimp exports soared by 13% year-on-year to US$3.2 billion in the first 10 months of 2024.

    They reached $394 million in October alone, a 24% increase from a year earlier, according to the Vietnam Association of Seafood Exporters and Producers.

    Shipments to major markets saw double-digit growth in the first 10 months, signaling a strong recovery in demand.

    Notably, shrimp exports to mainland China and Hong Kong totaled $676 million during the period, a year-on-year growth of 31%.

    Lobster exports surged by an extraordinary 157% to $298 million in the same period as China’s consumer stimulus policies have increased its imports of this product.

    Shrimp exports to the EU rose by 32% to $408 million, a 17% year-on-year increase. Demand from this market has experienced consistent growth since April.

    The U.S. imported $646 million worth of shrimp from Vietnam in the first 10 months, up 10% from a year ago.

    A decline in supply from the three largest producing nations, improved market sentiment and reduced inventories have boosted the U.S.’ shrimp imports.

    Prices are expected to rise with U.S. President-elect Donald Trump’s proposed import tax increases, so businesses there are in a rush to increase imports before the new tariffs take effect.

    Shrimp exports to Japan and the Republic of Korea also showed significant recovery in October, growing by 18% and 28% year-on-year, respectively, after a period of instability.

    Export shrimp prices, especially for white-leg shrimp, are on an upward trend, significantly improving profit margins for businesses.

    Additionally, processed shrimp products are experiencing robust growth, highlighting Vietnamese enterprises’ focus on high-value products.

    With this growth trajectory, shrimp exports are likely to reach $4 billion this year.

  • Milk tea chain Chagee sparks outcry in Malaysia over alleged lucky draw tampering

    Milk tea chain Chagee sparks outcry in Malaysia over alleged lucky draw tampering

    Chinese milk tea chain Chagee has sparked anger among many Malaysian internet users by demanding them to remove videos allegedly showing their employees tampering with a lucky draw.

    The chain last week attracted large crowds at its over 100 outlets in Malaysia by offering luxury prizes such as handbags from Louis Vuitton and Gucci and Apple smartphones.

    Customers were required to find coupons hidden inside Chagee cups to determine if they had won.

    But on Monday an online video went viral, showing a staff member going through the empty cups and putting aside the ones with the top prizes, according to the South China Morning Post.

    People alleged that the staff’s action indicated that the lucky draw was rigged.

    Chagee responded by telling social media users to remove the video “immediately”, which further fueled public outrage.

    “Chagee asked delete the video or else I will be cited for legal action,” X user Naquib said in a post seen by almost 6 million people.

    The chain’s Malaysia social media page was seen with hundreds of comments, with some calling to boycott the brand, same as they had done earlier with other U.S. chains such as Starbucks or McDonald’s for believing that they were connected to Israel in the Middle East conflict.

    Facing backlash, the milk tea chain decided to apologize to defuse the tension, saying that it “deeply regret any negative experience” over the incident.

    It said the behavior shown did not reflect the standards that the brand holds itself to. “We are currently conducting a detailed investigation to better understand the situation and, if necessary, will take appropriate action in line with our values,” Chagee said in a statement.

    It changed the lucky draw mechanism to using QR codes instead of physical coupons.

    Established in Yunnan, China, in 2017, Chagee has experienced rapid growth in Malaysia, thriving despite stiff competition from Taiwanese brands like Chatime, Gong Cha, and local favorite Tealive.

  • Fruit, vegetable exports soar 27%

    Fruit, vegetable exports soar 27%

    Exports of fruits and vegetables were worth an estimated US$6.6 billion in the first 11 months of 2024, a 27% increase from a year earlier.

    The Vietnam Fruit and Vegetable Association came up with the estimate based on customs data, which shows exports to major markets growing at double-digit rates.

    In the first 10 months, for which official data is available, shipments to China rose by 30% year-on-year to $4.1 billion, while exports to the U.S., South Korea and Thailand jumped by 35%, 41% and 70%.

    Durian was the best-selling item, making up more than $3 billion worth of fruit and vegetable exports in the period, with China accounting for $3 billion.

    Vietnam has been the second largest supplier with a 39% market share, trailing Thailand’s 60.2%.

    Dang Phuc Nguyen, general secretary of the association, said China has very high demand for fruits and vegetables, especially Vietnamese durian.

    If exports to the country continue to grow at current rates, Vietnam could surpass Thailand as China’s top durian supplier in the next year or two, he said.

    He expected fruit and vegetable exports to touch a record $7 billion this year.

    Vietnam gained approval to export frozen durian and fresh coconut to China in August,and many exporters have since reported signing large contracts to supply them. One company said it has a deal to ship up to 1,500 containers of coconut.

    Coconut, passion fruit and some other agricultural products are growing in popularity in the U.S, while Thailand has increased imports of fruits from Vietnam this year as its own production has been hit by unfavorable weather.

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  • Vietnam durian exports to China surpass Thailand’s

    Vietnam durian exports to China surpass Thailand’s

    Vietnam exported 177,000 tons of durians worth US$640.72 million to China in September, surpassing Thailand as the top supplier of the fruit to that market.

    China spent $894.58 million in all to import 228,000 tons of durian in September, with Vietnam accounting for 77.6% of it, Thanh Nien newspaper reported last Thursday, citing data from China’s General Administration of Customs.

    But Thailand remained the leader in the first nine months, exporting nearly 755,000 tons of the fruit worth $3.73 billion, accounting for 54.7%, according to Dan tri online newspaper. But the figures represented year-on-year declines of 14.1% in volume and 13.3% in value.

    During the period Vietnam shipped 618,000 tons worth $2.45 billion, up 72.2% in volume and 57.3% in value.

    According to Dang Phuc Nguyen, general secretary of the Vietnam Fruit and Vegetable Association, Vietnam typically has an edge over Thailand around year-end when it has off-season durian to export to China unlike Thailand, whose harvest ends well before that.

    He said Chinese demand also rises at that time as consumers ramp up purchases for the year-end holidays and the Lunar New Year.

    Vietnam enjoys transport advantages such as road and rail links with China, which helps its exporters save time and costs, he added.

    In a bid to boost its competitiveness, Thailand’s Digital Economy Promotion Agency recently rolled out a project called One Tambon, One Digital that aims enhance durian farmers’ productivity, strengthen consumer trust in Thai durians, and promote high-value products on a global scale, particularly amid competition from China and nearby nations, the Bangkok Post reported.

    The initiative will help over 6,100 farming households adopt digital platforms to record cultivation data and train 12,200 farmers in 23 provinces in e-commerce and Good Agricultural Practices, which is required to export durian.

    The country has 163,200 hectares under durian, and grows 1.53 million tons of the fruit annually.

    Durian accounted for 69% of its fruit exports in 2023, with China being the primary export market.

    Vietnam shipped 500,000 tons of durian worth $2.3 billion that year, with 90% going to China. It has 154,000 ha under the fruit and an output of 1.2 million tons.

    It previously surpassed Thailand in durian exports to China earlier this year, shipping 32,750 tons in the first two months of 2024. Thailand’s exports in the same period plunged by half to 19,000 tons.

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  • Thailand launches digital durian initiative to boost farmers’ income

    Thailand launches digital durian initiative to boost farmers’ income

    Thailand has kicked off the One Tambon, One Digital (OTOD) “Digital Durian” project to help 8.8 million durian farmers improve their productivity.

    Thailand’s Digital Economy Promotion Agency President Nuttapon Nimmanphatcharin said the OTOD Digital Durian initiative aims to engage over 6,100 durian farming households in adopting digital platforms for recording cultivation data within a two-year timeframe.

    The collection of this data will contribute to creating “big data” for Thailand’s agricultural sector, especially the durian sector. Pantanu Wannagangsai, advisor to the Ministry of Digital Economy and Society (DES), said the above-mentioned project aligns with the government’s policies which aim to solve issues of debt, income, cost of living and social stability. It is expected to contribute to building consumer confidence both domestically and internationally, promoting high-value Thai products globally amid fierce competition, especially from China and countries in the Southeast Asian region, he added.

    Thailand has 1.02 million rai of durian plantation areas and produce 1.53 million tonnes. Durian accounts for 69% of all exported fruits, or 991,557 tonnes last year, and the major durian export market is China.

    In addition, 12,200 farmers in 23 provinces are expected to be trained on e-commerce applications and certification for Good Agricultural Practice, supporting the development of a national agriculture platform.

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  • Vietnam spends $1.4B on meat imports

    Vietnam spends $1.4B on meat imports

    Vietnam imported nearly US$1.4 billion worth of meat and meat products in the first 10 months of 2024, up 14% from a year earlier.

    Most of the imports came from India, the U.S., Russia, and Germany, customs data shows. They are much cheaper than local products, making them highly attractive to consumers.

    Imported pork costs around VND52,000-62,000 (US$2-2.5) per kilogram on the retail market while domestic varieties are priced at VND80,000-180,000.

    The Dong Nai Livestock Association said the influx of cheap imported meat is putting further pressure on the domestic livestock industry, which has already been struggling with reduced supply due to African swine fever.

    If strict controls are not implemented, low-priced imports could hamper the industry’s growth and pose food safety risks, they warned.

    According to the Department of Animal Health, of the 6,679 batches of imported meats inspected between May and September this year, over 1% contained salmonella and was disposed of.

    The department is working with exporting countries to monitor quality, but experts want the government to tighten quarantine measures to protect public health and prevent disease outbreaks from contaminated food.

    In response to the sharp increase in meat imports, market regulators have also strengthened control measures to get rid of substandard products.

    In August HCMC authorities seized 400 kilograms of imported frozen pork intestines and udder meat that lacked documentation.

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  • Thailand inspection finds imported Shine Muscat grapes safe for consumption

    Thailand inspection finds imported Shine Muscat grapes safe for consumption

    All imported Shine Muscat grapes have met food safety standards, according to the Thai Food and Drug Administration (FDA), responding to public concern about recent reports of chemical contamination.

    The agency’s food and drug inspection division seized 6.93 tonnes of the grapes on Nov. 5 to run chemical residue tests, under its Hold Test Release protocol.

    The fruit met all regulatory standards, so the FDA approved them for import and domestic sale, its deputy director-general Lertchai Lertvut said. gtraPublic concern arose last month when the Thailand Consumers’ Council reported that 23 out of 24 Shine Muscat grape samples it tested were found to contain hazardous chemical residues beyond the acceptable legal limit.

    Some were contaminated with chlorpyrifos and endrin aldehyde, which are banned under Thai food safety laws.

    Shine Muscat grapes are a variety originating from Japan that features a yellow-green hue, crisp flesh, no seeds, and delightful sweetness.

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  • Coffee brand L’or launches bubble tea-inspired popping pearls

    Coffee brand L’or launches bubble tea-inspired popping pearls

    French coffee brand L’or has introduced L’or Coffee Popping Pearls, a bubble tea-inspired topping made with real coffee.

    The pearls can be served with both savoury and sweet dishes. The limited-edition product is available via the L’or e-shop, and Australia is the first international market to introduce the innovation.

    “We’re thrilled to be pioneers, bringing real coffee into popping pearls, blending the worlds of coffee and bubble tea in an innovative way. It makes coffee, yoghurt, ice cream, cocktails, desserts, etc, so much more exciting and surprising,” said Virginia Marsh L’or marketing director for Australia.

    L’or, founded in France in 1992, makes coffee capsules, coffee machines, and coffee-related equipment.

  • KFC Indonesia shutters 47 outlets, lays off thousands of employees

    KFC Indonesia shutters 47 outlets, lays off thousands of employees

    KFC Indonesia reported a net loss of IDR557.08 billion (over US$36 million) as of the third quarter of this year, resulting in the company’s closure of 47 outlets and sack of 2,274 employees.

    In its financial report, KFC Indonesia’s owner, Gelael and Salim Group under PT Fast Food Indonesia Tbk (FAST), disclosed that in the first nine months of this year, the company reduced its operational store count to 715 from the 2023 figure of 762. Its workforce has also significantly decreased, now standing at over 13,700 employees compared to nearly 16,000 previously.

    The most substantial factor in FAST’s revenue decline was a sharp drop in food and beverage sales, totaling 3.57 trillion IDR as of the third quarter, an annual decrease of 22.4%.

    FAST’s leaders attributed these downturns to the prolonged negative impacts of the COVID-19 pandemic. Recovery has yet to help the company reach its expected sale targets, while market conditions have further deteriorated.

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  • Chinese tea chain To Teapresso to expand overseas

    Chinese tea chain To Teapresso to expand overseas

    Chinese tea chain To Teapresso has opened its first store in Tsim Sha Tsui, Hong Kong. This launch is part of the company’s efforts to strengthen its global presence and expand into international markets.

    The brand is known for combining Chinese tea with extraction techniques, creating a “Chinese Tea Latte” by blending the extracted tea with fresh milk. It currently operates 20 stores on the Mainland.

    Teo Lv, founder and CEO of To Teapresso, said overseas expansion has always been part of the company’s plan since its launch.

    “Hong Kong is an international trade hub, offering advantages and more opportunities for our business operations,” said Lv.

    “The city’s unique blend of Eastern and Western cultures aligns well with To Teapresso’s brand essence, making Hong Kong our top choice for launching our overseas business.”

    He added that the company plans to open more stores in Southeast Asia, Japan, Korea, and Australia within the next 18 months.

    “The Hong Kong office currently focuses on international business in the Asia-Pacific region, including our expansion and operation in Hong Kong and Macau,” Lv concluded.

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  • Cafe de Coral warns of declining profit

    Cafe de Coral warns of declining profit

    Cafe de Coral expects to report lower net profit for the six months ended September 30 due to a “severe and expected downturn” amid a weakened economy.

    The restaurant chain forecasts net profit to decline not higher by 30 per cent from HK$200.6 million (US$25.8 million) in the year-ago period, due to the plunge in the restaurant business and a high-base effect following strong sales recovery when the pandemic-related restrictions were lifted.

    In Hong Kong, the company focused on value offers, menu mix, hero product promotions, and membership loyalty strategies to create demand and help offset decline.

    In Mainland China, the company implemented quick menu investments, promotional offers, and brand campaigns to keep a stable performance and profit margins.

    “With the central government’s determined efforts to promote recovery of the economy, as well as our strong underlying business fundamentals and steady focus on constant internal improvement, the group is well positioned to return to growth as the market recovers,” said the company.

  • Starbucks to open store near North Korea border

    Starbucks to open store near North Korea border

    Starbucks Korea plans to open a new location near the border between South Korea and North Korea, with a view into the latter country.

    The outlet will open on Nov. 27 on the second floor of the Jogang Observatory in Gimpo, Gyeonggi Province, South Korea, about 1.4 kilometers from the border with North Korea.

    The 136-square-meter store, with around 10 seats, will provide patrons a view into Kaepung County in North Korea’s North Hwanghae Province. It will also reportedly sell exclusive drinks and merchandise, including a cup featuring the Aegibong peak, where the observatory is situated.

    The Aegibong Peace Eco Park, which surrounds the observatory, is recognized for its environmental preservation and serves as a breeding ground for endangered species due to strict limits on civilian access. The military must screen all visitors before entering the park.

    The Gimpo government plans to add more buses running from the Marine Corps checkpoint to the park.

    South Korea has 1,893 Starbucks stores as of 2023, the fourth-highest number globally.

    Starbucks Korea reported sales of 2.93 trillion won (US$2.1 billion and an operating profit of 139.8 billion won last year.

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  • Jollibee Foods takes full ownership of Tim Ho Wan

    Jollibee Foods takes full ownership of Tim Ho Wan

    Jollibee Foods Corporation has fully acquired Tim Ho Wan, taking over the remaining 8 percent of the Hong Kong restaurant business for SG$20.2 million (US$15.1 million).

    Since January this year, Jollibee has held a 92 percent stake at Titan Fund, the owner and manager of Tim Ho Wan.

    In a stock exchange filing, JFC said its subsidiary Jollibee Worldwide signed an agreement with Titan Fund to acquire the remaining minority stake.

    Founded in 2009, Tim Ho Wan now has 80 stores across 11 countries. It will be Jollibee’s flagship brand for its Chinese cuisine segment.

    Aside from its dimsum, Tim Ho Wan is also known for barbecue pork buns, steamed rice roll stuffed with barbecue pork, pan fried turnip cake, and steamed egg cake.