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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.

  • Luckin Coffee may launch in the US as early as next year

    Luckin Coffee may launch in the US as early as next year

    Chinese coffee chain Luckin Coffee is exploring potential expansion into the US, with a launch possibly as early as next year.

    During an earnings call, Luckin Chairman and CEO Guo Jinyi emphasised both the promise and challenges of overseas growth.

    “The international market is filled with opportunities, but also presents significant challenges that require patience, time, and continuous investment,” Guo said.

    “We remain both patient and confident in our ability to succeed. We are actively evaluating opportunities in the US and other markets.”

    A report from the Financial Times suggests that Luckin may target cities in the US with sizeable Chinese student populations and tourist presence, such as New York.

    The company also aims to undercut major US coffee brands by offering drinks priced around US$2 to $3, potentially attracting budget-conscious consumers.

    Luckin has already begun overseas expansion in Singapore, opening eight new stores last quarter, taking its total in that market to 45. It also has stores in Malaysia.

    Although initial operations in the country incurred financial losses, Guo said these experiences provided valuable insights into the complexities of managing international ventures.

    The company plans to expand abroad, focusing on store network growth, supply chain management, and brand building.

    “Considering the maturity and competitiveness of the US coffee market, Luckin intends to approach its expansion strategy there with careful consideration and a disciplined execution plan,” Guo added.

    However, the potential US expansion may face reputational challenges.

    Jason Yu, GM at consumer research firm Kantar Worldpanel China, pointed out that Luckin’s past scandal, involving inflated sales data, could impact its brand image in the US.

    In 2020, Luckin admitted to fabricating approximately $310 million in sales in 2019, leading to multiple short-selling attacks and ultimately its delisting from NASDAQ.

    “With fierce competition in the Chinese coffee sector, overseas expansion and the possibility to regain trust from the capital market might be strategic options for Luckin,” Yu said.

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  • US pizza chain Little Caesars makes Cambodian debut

    US pizza chain Little Caesars makes Cambodian debut

    US pizza chain Little Caesars will open its first Cambodian restaurant on Koh Pich this November 10, marking the 29th market the company has entered and part of a planned expansion into Southeast Asia.

    Located on Koh Pich, the new restaurant will create local jobs and provide additional dining options in the country.

    “Cambodia presents a dynamic and rapidly growing market,” said Paula Vissing, president of global retail at Little Caesars.

    The chain, known for its Hot-N-Ready pizzas, is expected to open a second restaurant in Phnom Penh in early 2025.

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  • Laos’ sprouting durian industry strives for exports to China

    Laos’ sprouting durian industry strives for exports to China

    Durian production in Laos has come to fruition and the industry is seeking opportunities to export to China – the world’s largest consumer of the stinky fruit. Tao Jian, a 54-year-old Chinese entrepreneur and the owner of Jinguo, a company with 50,000 durian trees planted on the Bolaven Plateau in southern Laos, recently celebrated the first harvest from his.

    Though the region is primarily known as Laos’ coffee hub, it could soon gain recognition for durians.

    Tao said the country’s fertile soil is ideal for farming the fruit and a hybrid durian variety, a mix between Malaysian and local cultivars, has been successfully developed there, leading to high-quality produce.

    “I believe Laos will soon become the world’s fourth-largest durian producer, after Thailand, Vietnam and Malaysia,” he told Nikkei Asia.

    While the durian industry has been expanding rapidly in several Southeast Asian countries, large-scale durian farming has only been sprouting recently in Laos, where the fruit used to be grown mostly in the backyards of local families.

    At a meeting between the Lao Agricultural Business Association, representatives of Lao durian growers, and Chinese agricultural importers in August, Bounthieng Latthanavong, president of the association, stated that durian production methods in Laos have become more professional and robust, positioning the industry for success in global markets, as reported by the official Lao News Agency.

    Elavanh Latpakdee, a representative of durian farmers in Laos, said the association has 170 farms spanning 20,000 hectares and many trees have started producing fruits, yielding around 900 tons of durian per year. It expects production to rise to 24,300 tons worth more than US$155.5 million.

    Durian farming in Laos has come a long way, but the country has not yet been allowed to export the fruit to China.

    However, that goal might not be too far off. Bounchanh Kombounyasith, Laos’ director general of the Department of Agriculture, said market access documents were being prepared and Lao durians will soon be exported to China, a state-owned Chinese newspaper reported late last month.

    As the top importer of the fruit, China procured 1.4 million tons of durians worth $6.7 billion in 2023, with Thailand and Vietnam being the top suppliers.

    In the second quarter of this year, Thailand shipped about $2.67 billion worth of durian to China, accounting for 75% of imports. Vietnam supplied most of the remaining shipments during the period, the South China Morning Post reported, citing Chinese customs data.

    China’s burgeoning demand has been transforming the durian industry in Southeast Asia.

    Many farmers in Thailand and Vietnam have become wealthy from the fruit.

    And it might also turn the sprouting durian industry in Laos into an economic boon for the country.

    China is Laos’ second largest trading partner and its top investor, China Daily reported, citing Chinese customs data.

    Bilateral trade between the two nations hit a record $7.1 billion in 2023. It amounted to $4.9 billion in the first seven months of this year, a 30.3% increase from a year ago.

    Besides the natural advantages noted by Tao, Laos’ durian industry has been attracting investment from Chinese businessmen who possess the resources to develop the sector. Many of these investors are turning to Laos to establish durian farms with the aim of shipping the fruit back to China.

    The Laos-China railway, launched in December 2021, might add to this momentum by reducing the travel time from Vientiane, the capital of Laos, to Kunming, a key trade center in southwestern China, to under 10 hours.

    The industry also receives the support of foreign professionals like Duangdavone Sulayavongsa, a durian cultivation expert with nearly 20 years of experience in Thailand.

    He believes that Lao durians hold the potential to become a major export commodity, greatly benefiting the country’s economy.

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  • Lobster exports to China surge 33 times

    Lobster exports to China surge 33 times

    Vietnam’s lobster exports to China rose 33-fold year-on-year to US$205.87 million in January-September on the back of lower prices and stronger trade ties between the two nations. This marks a 3,285% surge from the same time last year, citing statistics from the General Administration of Customs of China.

    In September alone, lobster imports from Vietnam rose by 133.9% from August and 2,336% year-on-year.

    China’s overall lobster imports increased by 40.86% year-on-year to $558.24 million in the same period, while import prices decreased by 23%.

    Analysts said the spike means Chinese consumers still have a craving for high-end foods despite hesitancy in overall spending, adding import costs from Vietnam are significantly lower than from other countries due to differentials in labor and shipping.

    According to Phung Thi Kim Thu, an expert from the Vietnam Association of Seafood Exporters and Producers, China’s easing of seafood import regulations, together with the signed bilateral agreements and the trade liberalization rules under the Regional Comprehensive Economic Partnership (RCEP), has facilitated the growth in Vietnam’s lobster exports.

    China is also set to restart the import of Australian lobsters. During the recent ASEAN Summits in Laos, Beijing and Canberra agreed to lift a nearly four-year moratorium on lobster shipments by the end of the year.

    In 2019, the last full year with data recorded, over half of China’s lobster imports came from Australia.

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  • Bega Cheese reveals new look for Dairylea

    Bega Cheese reveals new look for Dairylea

    Bega Group has introduced a new appearance to its Dairylea-branded products, including the original slices and burger slices.

    Following the change, all Dairylea-branded product lines will have Bega-branded packaging.

    “Our same great tasting slices continue to be an everyday essential item, just with a new look,” said Anna Martin, brand manager of culinary at Bega Group.

    “Suitable and affordable for Australian families, we are excited to see our new packaging on supermarket shelves, helping shoppers to stretch their household budget a little further without compromising on taste and quality.”

    The refreshed packaging is now available in local supermarkets and will be accessible in Coles later this month.

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  • Imports of Chinese vegetables, fruits soar in 2024

    Imports of Chinese vegetables, fruits soar in 2024

    Vietnam imported US$697 million worth fruits and vegetables from China in the first nine months of 2024, up 24% year-on-year.

    Imported Chinese farm products used to be sold only in traditional markets, but now they can also be found at most major retail chains such as MM Mega and Co.opmart.

    The major imports include apple, grape, garlic, onion, and potato, and are often 10-30% cheaper than products from other countries.

    Vo Thanh Loc, co-founder of retailer Farmer’s Market, said the company used to source its products from Australia, Japan, South Korea, and the U.S., but has recently added Chinese products to the list since they look nice and come in many varieties.

    HCMC’s Thu Duc Agriculture Market has received 88,400 tons of vegetables and fruits imported from China so far this year.

    Dang Phuc Nguyen, general secretary of the Vietnam Fruits & Vegetables Association, said China has been able to improve its fruits quality through farming region control and packaging.

    Thanks to reduced transportation costs and zero import tax agreements between China and ASEAN countries, Chinese produce have an advantage in Vietnam, he added.

  • Japanese burger chain Niku Niku Oh! Kome debuts in Hong Kong

    Japanese burger chain Niku Niku Oh! Kome debuts in Hong Kong

    Japanese-style burger chain Niku Niku Oh! Kome – owned by Japanese restaurant chain operator Monogatari Corporation – has launched its first outlet in Hong Kong as part of its broader expansion across Asia.

    Located in Sha Tin, the restaurant has 40 bar seats surrounding an open kitchen. It specialises in freshly handmade wagyu burgers seated on hot plates or served on rice with egg yolk for a “classic Japanese experience”.

    The wagyu hamburgers are crafted from a blend of Kyushu black wagyu beef and US beef, while the rice served is Niji No Kirameki, sourced from Japan’s Tohoku region.

    Makoto Hori, senior executive officer, Monotogari Corporation, said that Hong Kong, being an international city close to the mainland, offers the company an opportunity to raise brand awareness in the Asian region.

    “We have already opened 16 restaurants in Mainland China since November 2022, and local customers have well received our food,” he added.

    Established in 1949, Monogatari Corporation has more than 700 restaurants in Japan and overseas, with 15 restaurant brands serving various Japanese foods, including yakiniku, ramen, okonomiyaki, sushi and shabu-shabu.

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  • Vietnam fetches $227M from crab exports

    Vietnam fetches $227M from crab exports

    Crab exports in the first nine months surged 66% year-on-year to $227 million, the strongest growth recorded among major fishery products.

    The rise in sales came as major markets, especially China, pumped up demand for Vietnamese crabs, the Vietnam Association of Seafood Exporters and Producers (VASEP) said in a report.

    Japan was also a major market as Vietnamese high-quality crabs are priced competitively there.

    Crab exports are expected to hit $300 million for the whole year.

    Fishery exports in total rose 8.5% to $7.16 billion in the first nine months. Shrimps led the gain with a 10.5% growth.

    VASEP forecasts that Vietnam’s seafood exports in 2024 can grow 7% to $9.5 billion, with shrimp, pangasius, tuna, squid and octopus making up the bulk of delivery.

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  • Pepper exports hit $1B in 2024, prices surge to 8-year high

    Pepper exports hit $1B in 2024, prices surge to 8-year high

    Pepper exports topped 203,000 tons, fetching US$1 billion, in the first nine months of 2024, with prices rising to their highest levels in eight years.

    This meant value was up 46.9% year-on-year despite a 1.5% drop in volumes, according to customs data. The average export price was $6,239 per ton in September, a 67.5% jump from a year ago.

    Businesses said prices have increased due to a decline in supply caused by weather conditions and farmers’ crop switching.

    Experts said domestic pepper prices are likely to rise further this year, especially with Tet (Lunar New Year) coming around in a few months.

    The Ministry of Industry and Trade’s import and export department forecast global prices to remain high as the country’s pepper production is expected to decrease next year due to drought.

    The Vietnam Pepper Association does not expect global production to meet demand in the next three to five years.

    Pepper is an important agricultural product for Vietnam, which is also the world’s largest exporter of the spice with a 60% market share. Its exports last year were worth $912 million.

  • Thailand’s rice export prices dip to 14-month low

    Thailand’s rice export prices dip to 14-month low

    Thai rice export prices fell to a 14-month low this week due to weak demand and competition from other rice exporting countries.

    Thai 5% broken rice was priced at US$560 per ton, the lowest level since July 20, 2023 and down from $565 last week.

    A Bangkok-based trader said on Thursday that prices could fall further if the Thai baht depreciates. Another trader said the market was waiting to see changes in Indian rice policy in the coming months and that supply was in the harvesting stages.

    Meanwhile, Vietnamese 5% broken rice was exported at $565 per ton on Thursday, according to the Vietnam Food Association, also down from around $580 last week.

    “Prices fell on competition from other suppliers such as Thailand, Cambodia and Myanmar,” a trader based in Ho Chi Minh City said.

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  • Durian prices drop up to 30%

    Durian prices drop up to 30%

    Farmers are now selling top-grade Monthong durians for VND65,000-70,000 (US$2.64-$2.84) per kilogram, down 25-30% compared to the prices at the start of the season in July.

    Grade B durians are priced at VND55,000-63,000 per kilogram, with a similar decrease from July and approximately 10% lower than the same period last year.

    Minh Thanh, a farmer in the Central Highlands province of Dak Lak, hopes that durian prices will recover by the season’s end. However, prolonged heavy rains have compromised the fruit’s quality, leading to low selling prices at the garden.

    Similarly, Hong Anh, owner of 0.5-hectare crop in the Central Highlands province of Gia Lai, encounters challenges as buyers rescind their offers of VND80,000 per kilogram, even forfeiting deposits, compelling her to sell at only VND65,000 due to poor quality.

    Anh attributes the price drop to the fruit’s diminished quality from excessive rainfall, particularly in new orchards that lack proper cultivation techniques. The hardened fruits complicate exports, with most being consumed domestically.

    Manh Hoang, a trader in the Central Highlands, observes that durian quality suffers when grown alongside pepper and coffee. As the prices for pepper and coffee increase, many farmers prioritize them and apply unregulated fertilization, which degrades the durian quality. Some buyers only purchase durian for use in ice cream or for extracting the pulp, further complicating the export of whole fruits.

    “I buy a few tons each day, but only 50% of the fruits meet export standards,” says Hoang. “The rest are sold in HCMC, Hanoi, and Da Nang.”

    The General Department of Vietnam Customs reports that in the first seven months of 2024, Vietnam exported 476,130 tons of durian, valued at US$1.6 billion, representing a 50.5% increase in volume and 49.4% increase in value compared to the same period last year.

    However, July saw a 30.8% decrease in both value and volume compared to June, totaling only US$280 million. Exports further declined to US$200 million in August.

    Despite weather-related slowdowns, businesses note that durian export demand from China is recovering due to festive occasions. Improved weather from October is anticipated to enhance the quality of durian. Additionally, the volume of off-season produce has increased potentially, increasing export turnover.

    Dang Phuc Nguyen, Secretary General of the Vietnam Fruit and Vegetable Association, explains that the reduction in export volume during July and August is temporary. From September, durian export turnover is expected to surge, potentially reaching nearly US$3 billion this year.

    On Aug. 19, during a visit to China by Party General Secretary and State President To Lam, the two countries signed a protocol on exporting frozen durian, offering substantial opportunities for Vietnamese agriculture. Exports of frozen durian are anticipated to generate US$400-500 million this year.

    In 2023, Vietnam exported approximately 500,000 tons of fresh durian, valued at US$2.3 billion, with 90% destined for China. The area planted with durian encompassed 154,000 hectares, yielding nearly 1.2 million tons, an annual increase of 15%.

    Vietnam has around 151,000 hectares under durian, with the Central Highlands accounting for half of it. Other large growing areas include the southeast and the Mekong Delta regions with 25,000 ha and 42,000 ha.

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  • New Starbucks CEO shakes up China arm’s top management

    New Starbucks CEO shakes up China arm’s top management

    Brian Niccol, who became Starbucks’ CEO earlier this month, has named Molly Liu the sole chief of the coffee chain’s China operations after her one-year tenure as co-CEO.

    Bloomberg reported, citing a post on Starbucks’ WeChat channel, that the management shift aims to hand leadership to “a new generation of successors. ”

    Liu was named China co-CEO last year and had been working alongside Belinda Wong, the company said.

    Wong, who had been overseeing Starbucks’ business in China since 2011, will remain the chairwoman of that market, taking charge of innovation and China’s development strategy and boosting the brand’s social influence.

    The move came as the U.S. coffee chain is struggling with declining sales and growing local competition in China, its second-biggest market globally with over 7,300 locations, according to the trade magazine Restaurant Business.

    Revenues from Starbucks’ China stores dropped 11% year-on-year to US$734 million in the second quarter this year while comparable store sales declined by 14%, according to the South China Morning Post.

    Chinese coffee chains, meanwhile, have been offering customers drinks at much lower prices to compete with the U.S. giant, which has been in China since 1999.

    As CEO, Liu will have to stabilize the business while working toward the goal of opening about 1,700 more stores in that market.

    Her appointment is the second shift in executive management at Starbucks since the new CEO took the helm just over two weeks ago.

    The firm’s CEO for North America, Michael Conway, announced his retirement last week.

    Instead of filling his position, the company plans to hire a global chief brand officer to lead areas such as product and marketing.

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  • McDonald’s to shut down 10-year-old HCMC store

    McDonald’s to shut down 10-year-old HCMC store

    American fast food chain McDonald’s is set to close one of its oldest stores in Ho Chi Minh City.

    The Ben Thanh location in District 1, which opened in 2014, would stop operations at 2 a.m. Thursday, the chain said in a Facebook post without revealing the reason for it.

    It was the chain’s second restaurant in the city.

    After its closure, McDonald’s will have 35 stores in Vietnam, including 17 in HCMC.

    Another major American F&B chain, Starbucks, shut down a store at a prime location in District 1 last month after seven years.

    Rents for high-end retail property in HCMC surged to a record US$280 per square meter on average in the first half of the year due to limited supply.

    It represented increases of 18% increase year-on-year and 60-70% from five years ago, according to property consultancy CBRE Vietnam.

  • Thai rice prices dip to one-year low

    Thai rice prices fell to their lowest in over a year as bidders were forced to reduce their prices in a recent auction held by Indonesia.

    Thai 5% broken rice was priced at US$550-565 per ton this week, the lowest since July 20, 2023, down from $585 quoted last week.

    A Bangkok-based trader said the market still considers Thai prices too high. However, flash floods have been hurting short-term harvest yields, so prices might improve down the road.

    Another trader said competitors weighed prices down and that Thai bidders lost out to other exporters in a recent auction held by Indonesia due to higher prices.

    There will be demand from African and European customers before October because those orders would be delivered before late December, the trader said.

    Meanwhile, Indian rice export prices extended losses this week to hit an eight-month low.

    Indian 5% broken parboiled rice was quoted at $534 per ton, the lowest since mid-January, and down from the $540 a week earlier.

    According to the Vietnam Food Association, Vietnamese 5% broken rice was offered at $567 per ton on Thursday, down from $575 a week ago.

    A trader based in Ho Chi Minh City said trading activity remains slow while demand is weak.

    Traders said the ongoing floods in northern Vietnam might have an impact on rice production, though rice for export is mostly grown in the Mekong Delta in the south.

  • Banana prices double in Thailand

    Banana prices double in Thailand

    The price of kluay hom thong banana or “golden bananas” in Thailand has doubled to 30 baht (US$0.89) amid growing demand.

    Somchai Nunual, leader of the golden banana and fruit safety group in Bang Kaew district in Thailand’s Phatthalung province, said the price hike was due to the growing popularity of the fruit, while the lack of rain since the second half of last year has curtailed the supply of bananas to the market.

    Bang Kaew district has been the center of the bananas in the province since farmers discovered the soil in the district is more suited to growing bananas than rubber, rice or oil palm.

    Thailand’s Ministry of Agriculture and Cooperatives predicted that the kluay hom thong banana harvest this year will amount to just 32,000 tons, a massive drop from last year’s 120,000 tons.

    Farmers made an average of 278 baht per 100 bananas last year, up from 243 baht in 2022, according to the ministry. It forecast that banana farmers will pocket 292 baht per 100 fruits this year.

    The kluay hom thong banana is one of Thailand’s main fruit exports, with 80% going to Japan and the rest largely to China and Cambodia.

    Japan allows Thailand a quota of 8,000 tons of the fruit annually, but the actual export volume is only half that because farmers cannot produce enough of the fruit that meets Japanese standards, according to the Internal Trade Department.

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