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Tag: asia

  • Bacardi Australia appoints Luiz Schmidt as new MD

    Bacardi Australia appoints Luiz Schmidt as new MD

    Luiz Schmidt will take over as Managing Director of Bacardi in Australia and New Zealand after more than two years in Panama working as Regional Marketing Director for Bacardi in Latin America and the Caribbean.

    A University of Technology MBA graduate and FMCG marketing specialist with over 20 years of international experience, Schmidt will lead Bacardi’s sales, marketing, finance and supply chain functions, as well as expand the company’s premium portfolio and market share in the region.

    Vijay Subramaniam, Regional President for Asia, Middle East & Africa and Global Travel Retail at Bacardi, said Schmidt is uniquely qualified to take over as Managing Director as a dual Australian and Brazilian national with a wealth of experience.

    “The appointment of Luiz Schmidt as our new Managing Director marks an exciting chapter for Bacardi in Australia and New Zealand,” he said.

    “Thanks to his extensive international experience leading both developed and emerging markets with the company and more broadly within the industry, Schmidt brings a deep and nuanced understanding of the global premium spirits market.”

    Schmidt said he’s excited to return to Australia, where he’ll be based with his family and take charge of a talented team across Australia and New Zealand.

    “These markets are one of the most developed and attractive premium spirits markets in the world, offering Bacardi a tremendous opportunity to accelerate the growth of our iconic brands in close partnership with our customers and consumers,” he said.

    Bacardi is the world’s largest privately held spirits company, and according to IWSR market share data, holds a leadership position across premium vodka, super-premium tequila, premium gin and white rum globally.

    Schmidt has experience leading long-term marketing and business strategy in companies such as Brown-Forman and Edrington in Australia, USA, Brazil, Mexico and Latin America.

    In his most recent role as Regional Marketing Director for Bacardi in Latin America and the Caribbean, Schmidt successfully transformed the region’s marketing and commercial execution functions and increased market share for brands including Patrón and Bombay Sapphire while co-led Bacardi ́s marketing transformation in Mexico.

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  • Smartphone exports to Vietnam plunge in deepest fall in Southeast Asia

    Smartphone exports to Vietnam plunge in deepest fall in Southeast Asia

    Shipments of smartphones to Vietnam plunged 30% year-on-year in the first quarter, the deepest decline among the five major Southeast Asian markets, according to a new report.

    Malaysia came second from bottom in terms of negative growth, down 29% year-on-year. Thailand saw shipments drop 1%, according to market research company Counterpoint.

    The five main Southeast Asian markets, including Indonesia and the Philippines, saw an overall drop in shipments of 13%.

    Counterpoint analyst Glen Cardoza said that consumer sentiment has not fully recovered in Vietnam.

    He added that inflation in Southeast Asia has affected buyer sentiment, leading to a decrease in demand for new phones.

    A report by another market research company showed that 2.5 million smartphones were sold in Vietnam in the first two months, down 30% year-on-year.

    “This year, people started to tighten their spending right from January,” said a representative of a smartphone retail chain.

    Cardoza said that another reason for the first quarter decline was that Vietnam had received many shipments in the last quarter of last year.

    Counterpoint data also shows that economic challenges have not affected the high-end segment.

    Samsung posted the biggest sales in Vietnam in the first quarter and claimed 21% of the market, followed by Oppo at 20%, Vivo with 14%, Xiaomi 14%, Realme 12% and Apple 7%.

    However, all brands saw a decline compared to the same period last year, except for Apple which posted growth of 18%.

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  • Fuel prices rise after 6-week decline

    Fuel prices rise after 6-week decline

    Gasoline and diesel prices on Monday gained for the first time since April 11.

    The popular gasoline RON95 went up 2.33% to VND21,490 per liter.

    Biofuel E5 RON92 rose 1.74% to VND20,480. Diesel increased by 1.70% to VND17,950.

    Fuel prices globally have been rising by 0.73-3% in the last 10 days due to a production cut by OPEC+, concerns of the U.S. public debt, stalled manufacturing and high interest rates which could lead to an economic recession.

    RON95 price went up 2.6% to $89.63 per barrel, and diesel rose 2.2% to $89.18.

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  • AirAsia adds new routes to China

    AirAsia adds new routes to China

    AirAsia announced the addition of three new routes from Kuala Lumpur to the southern regions of China, further cementing its position as the largest foreign carrier serving the most populous country in the world. New services to Quanzhou and Guilin operated by AirAsia Malaysia (AK) and to Chengdu (Tianfu) operated by AirAsia X Malaysia (D7) are now added to the extensive network of 15 routes with over 129 flights weekly between China and Malaysia.

    Flights to/from Quanzhou will recommence twice weekly and start operating on 18 June 2023. Flights to/from Guilin will restart thrice weekly on 18 July 2023 and flights to/from Chengdu (Tianfu) will start twice weekly on 1 July 2023 and increase to thrice weekly from 4 July 2023. Recently, AirAsia Malaysia (AK) also resumed daily services from Kota Kinabalu to Wuhan, further strengthening its position as the Malaysian carrier with the most connections and capacity in China.

    AirAsia Malaysia CEO Riad Asmat said: “Following the recent opening of China to the world and strong pent up demand, our rapid expansion into China continues and we are proud to connect millions of guests not only to major destinations but also to underserved second-tier cities and launch unique routes such as Quanzhou and Guilin. China remains a key market for our future growth and we will continue to review a number of other potential Chinese routes that we hope to be in a position to announce soon.”

    AirAsia Malaysia (AK) will be flying 11 routes to/from China with over 118 flights weekly from Kuala Lumpur to Guilin, Quanzhou, Guangzhou, Kunming, Shenzhen, Nanning, and Shantou; Kota Kinabalu to Guangzhou, Shenzhen, Wuhan; and Johor Bahru to Guangzhou. AirAsia X Malaysia (D7) will be flying four routes to/from China with over 11 flights weekly from Kuala Lumpur to Chengdu (Tianfu), Beijing (Daxing), Shanghai, and Hangzhou.

    Etihad Airways is set to fly to Osaka five times per week beginning 1 October 2023, connecting one of the world’s most culturally animated cities to the already extensive Etihad network. “We’re delighted to introduce flights to Osaka for the first time,” said Antonoaldo Neves, CEO of Etihad Airways. “As one of the world’s most cosmopolitan cities, I know visitors will enjoy exploring its heritage and sampling some of Osaka’s renowned hospitality. Equally, the new route opens up Abu Dhabi to visitors from Osaka, and we look forward to welcoming guests to our vibrant home as well as giving them access to our growing, global network.”

    The introduction of this route will support the growing trade and tourism ties between the countries and add to Etihad’s existing Tokyo service by providing another route to Japan. Etihad will be flying a state-of-the art Boeing 787-9 Dreamliner on the new route, offering guests a taste of the airline’s celebrated service, catering and onboard entertainment.

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  • China bans shipments from U.S. memory chipmaker Micron Technology

    China bans shipments from U.S. memory chipmaker Micron Technology

    The U.S. has banned phones and networking equipment from Huawei and ZTE due to fears that these companies’ products have backdoors that send information to Beijing. This weekend, China went on the attack against U.S. memory chip maker Micron Technology by banning its chips from the country. According to the South China Morning Post (SCMP), Micron is considered a “national security risk” which is exactly what the U.S. calls Huawei and ZTE.
    The U.S. Commerce Department said it “firmly opposes restrictions that have no basis in fact.” Besides getting back at the U.S. for banning products made by Huawei and ZTE, the move against Micron is retaliation for U.S Export rules that were put into place in 2020 that prevent certain chips made using American technology from being shipped to China.
    The U.S. Commerce Department added that “We will engage directly with PRC (People’s Republic of China) authorities to detail our position and clarify their action. We also will engage with key allies and partners to ensure we are closely coordinated to address distortions of the memory chip market caused by China’s actions.”
    Micron Technology, located in the heart of potato country in Boise, Idaho, released its own statement early Monday morning which said that it was aware of the decision made by Beijing and was examining its next steps. It also said, “We look forward to continuing to engage in discussions with Chinese authorities.” Last year Micron generated 11% of its $30.8 billion in revenue from China selling DRAM, NAND flash memory, and solid-state drives.
    China’s Cyber Security Review Office under the Cyberspace Administration of China (CAC) had said back in March that it was investigating Micron and on Monday China said that Micron failed to pass a cybersecurity review. As a result, Micron’s chips cannot be used by telecom operators, banks, water utilities, and other companies. The CAC said that its review of Micron revealed “severe cybersecurity risks, posing significant security risks to China’s critical information infrastructure supply chain and to our national security.”
    We’re sure to hear more about this in the coming days.
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  • Company fined $37,000 for not disclosing stock market transactions

    Company fined $37,000 for not disclosing stock market transactions

    Thai Son Investment Solutions Jsc has been fined VND870 million (US$37,100) for selling and buying back a stock in October last year without disclosing the information.

    The State Securities Commission of Vietnam announced the fine recently and prohibited the company from trading on the stock market for three months starting May 19.

    Thai Son surreptitiously sold 1.5 million shares of Electricity Investment Service Trade Jsc (EIN) on October 19, 2022, and bought 1.4 million shares three days later.

    The SSC recently placed Tan Viet Securities under restrictions for four months for publishing its unaudited financial statements.

    The company had been fined VND745 million in 2021 and 2022 for multiple stock market violations.

  • Bentley recalls two Continental models due to fire risk

    Bentley recalls two Continental models due to fire risk

    Luxury carmaker Bentley is recalling its Continental GT First Edition W12 and W12 cars in Vietnam to fix a faulty water pump that poses a threat of fire.

    Due to a design defect, the water pump could create a vacuum within the electrical area of the pump and cause liquid from the coolant system to permeate the housing of the water pump and damage the electrical circuitry which could cause a fire, it said.

    The recalled vehicles were manufactured in 2018 and imported from the U.K.

    Dealers of distributor CT Wearnes Vietnam are handling the recall, and it will take some 50 minutes to replace the faulty water pump.

    A spokesperson for the British carmaker in Vietnam said if the engine management light lights up or smoke is detected, people should immediately stop the vehicle wherever it is safe to do so, turn off the ignition, evacuate the vehicle, and contact the nearest retailer immediately.

    Bentley has an authorized dealer each in Hanoi and Ho Chi Minh City.

    The Continental GT is a two-door sedan with a price-tag of at least VND18 billion (US$762,700) in Vietnam.

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  • Poor demand drags MacBook prices down

    Poor demand drags MacBook prices down

    Apple’s MacBook Pro laptops have seen their prices tumble by tens of millions of dong (VND1 million = $42.6) in the two months amid underwhelming demand.

    Quy Thien, a video editor, said when the MacBook Pro 16-inch was released in Vietnam at the end of March, he ordered a high-end model with an M2 Max chip, 96 GB RAM, and 4 TB storage for VND149 million (US$6,400).

    But Apple dealers told him the model was not available, but would arrive in two months. When his device arrived, he checked the prices and found it had fallen to VND133 million.

    “In two months, I lost VND16 million when I hadn’t even received my device,” he said.

    A retailer explained that the MacBook Pro is a niche product due to its high price. Dealers do not stock some high-end models, and users have to order and wait for six to 12 weeks. Thus, early buyers got a bad break since prices started to fall as they waited, he said. Even the standard version has become cheaper.

    At the time of launch the 14-inch version with 16 GB RAM, 512 GB storage and an M2 Pro chip cost VND52.9 million, and the 16-inch version cost VND65.9 million. If they had M2 Max chips, the prices were VND81.9 million and VND92.9 million.

    In the next two months retailers slashed the prices of the 14-inch model by VND5 million if it had an M2 Pro chip and VND8 million if it had an M2 Max chip.

    VND million (VND1 million = $42.63)MacBook pricesMarchMayMacBook Pro 14 inch M2 ProMacBook Pro 14 inch M2 MaxMacBook Pro 16 inch M2 ProMacBook Pro 16 inch M2 Max0255075100

    However, it has not worked and sales have not picked up, and the MacBook Pro only accounts for 2-3% of total laptop sales.

    Hoang Ha Mobile said the high prices are the biggest dampener of demand.

    Other Apple laptops have also become cheaper.

    The MacBook Air M1, which used to be the best-selling laptop in Vietnam, currently costs VND17.9 million, VND11 million down since its launch in January 2021.

    The MacBook Air M2’s prices have fluctuated. At the end of April its price briefly went down from VND28 million to VND25.9 million before climbing back up at the beginning of May.

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  • Construction steel sales fall 15% in April

    Construction steel sales fall 15% in April

    According to the Vietnam Steel Association, over 735,000 tons of construction steel were sold in April, the second-lowest monthly sales figures since 2022.

    The sale was down 15% against the same period last year.

    Over 710,000 tons of construction steel were produced, posting the smallest monthly output since 2022, and a year-on-year drop of 37%.

    According to Hoa Phat Group, which holds one-third of the market share for construction steel, demand remained weak worldwide, so it sold only 214,000 tons of construction steel in April, down 28%.

    To spur sales, Hoa Phat on May 19 reduced the price of rebar by VND200,000 (US$8.50) to VND15.09 million per ton. Other steel makers lowered the price by VND150,000-250,000.

    Since early April, steel prices have decreased six times. At present, the average price of most common products is around VND15 million per ton, similar to that in October 2022 when steel demand started to plummet.

    According to Vietcombank Securities Company, steel prices started to fall in late April when prices of input materials such as iron ores, steel scrap and coke went down.

    Construction steel prices are likely to drop further in the coming time because of weak demand, the company said, noting that real estate developers and people are discouraged to build houses amid economic difficulties with high lending interest rates.

    According to the World Steel Association, the global steel demand is likely to increase by 2.3% to 1.82 billion tons this year, and by 1.7% to more than 1.85 billion tons next year. However, the demand will still be affected by high leading interest rates.

  • Meme coin Pepe craze causes thousand-dollar losses

    Meme coin Pepe craze causes thousand-dollar losses

    Thanh Nam from Binh Duong Province sold half his Bitcoin for US$5,000 to buy the hot meme coin Pepe at its peak.

    But he was recently only able to sell the coin for a total of $2,000.

    When the Pepe coin price hit $0.000004 on May 5 (bringing its market capitalization to $1.63 billion), Nam’s initial investment could have returned $7,000.

    But he wanted more, so he decided to wait.

    However, Pepe’s price plummeted to $0.0000017 only one week later. Nam then sold his tokens at a loss of $3,000

    “If I had waited more, I would have lost even more”, he said.

    Nam is just one of many who joined the Pepe craze recently.

    According to crypto price tracking website CoinMarketCap, Pepe’s price spiked after its launch in mid-April. It peaked on May 5, then lost most of its value afterwards.

    Meme coins are still widely considered a joke in cryptocurrency, however popular they get.

    Pepe was built on the BRC-20 standard of Bitcoin, different from many other meme coins which use Ethereum’s ERC-20.

    On its project homepage, Pepe’s developer said: “$PEPE is a meme coin with no intrinsic value or expectation of financial return. There is no formal team or roadmap. The coin is completely useless and for entertainment purposes only.”

    Despite such disclaimers, new meme coins like Pepe still attract lots of investment.

    Kyle Doane, who is in charge of transaction review at digital asset management company Arca, said that quite a few people sold parts of their top coins like Bitcoin and Ethereum to join the Pepe frenzy.

    When Pepe peaked on May 5, both those coins’ value dropped by 10%, a considerable value reduction after four straight months of growth.

    Joe Rotunda, director of enforcement at the Texas Securities Commission, said that when the hype surrounding a meme coin goes away, most people who invested in the coin suffer significant losses.

    Even when one gains from a meme coin, obtaining the profit is not easy.

    Merav Ozair, fintech expert at Cornell University, said he saw many who hit million-dollar jackpots investing in meme coins unable to withdraw their profits.

    Meme coins like Dogecoin and Shiba Inu, which are still highly valuable, are the exceptions, not the rule.

    Experts suggest that if investors want to try their luck with meme coins, they should only invest a small amount, and be ready to lose it all.

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  • CIMB Thai, Positive Thinking Company partner to establish software development center

    CIMB Thai, Positive Thinking Company partner to establish software development center

    CIMB Thai Bank and Positive Thinking Company, a leading technology company in Asia-Pacific, have announced to establish an expert software development center for CIMB Thai in Hanoi.

    The Vietnam Software Development Center in Hanoi is expected to add powerful engineering expert resources and accelerate the digital journey of CIMB Thai, a member of CIMB Group.

    “With the vision of becoming a digital-led bank with ASEAN reach, we look forward to the collaboration to help accelerate our ambitious digital evolution roadmap aimed at offering customers a best-in-class digital banking experience,” said Paul Wong Chee Kin, President & CEO of CIMB Thai.

    “The Vietnam Software Development Center in Hanoi will be the latest highlight in our fast-moving digital journey, joining existing digital hubs in Bangkok and Chiang Mai as a collective engine of excellence that will support our long-term digital aspirations.-

    The partnership will scale up digital resources and drive products and services across CIMB Thai’s offerings.

    Pieter van Diermen, CEO of Positive Thinking Company APAC, a member of Collaboration Betters The World (CBTW) Group, said the strategic tech partnership would help CIMB Thai set up their first software development center in Vietnam, through the distinctive Build Operate Transfer (BOT) model of Positive Thinking Company.

    “During our 20 years of experience in building custom software and product development centers in Vietnam, we have witnessed the local market grow an ever more talented pool of highly motivated and well-rounded software engineers,” said Pieter van Diermen.

    “The Vietnam Software Development Center will be a powerful addition to the current expert engineering teams of CIMB Thai and will make remarkable contributions to its inspiring digital journey.”

    The Vietnam Software Development Center kicks off with a team based in Hanoi. The team is working closely with the CIMB’s engineering teams in Thailand to deploy new features and enhancements on the CIMB Thai mobile banking application as well as other digital touchpoints.

    With an average of 55,000 new engineers graduating each year, Vietnam’s software development sector is flourishing and becoming a major player in the worldwide software product engineering market.

    Vietnam is also predicted to become the second-largest digital economy in Southeast Asia by 2025.

    Through its scalable and cost-effective BOT model, Positive Thinking Company has established more than 15 software development centers in Vietnam to assist its global clients in accelerating their product roadmaps and digital transformation journeys.

    Positive Thinking Company is a founding partner of Collaboration Betters The World, a global tech group and ecosystem with a global team of 4,000 tech talents. Its core expertises in APAC include software product engineering (developing web and mobile apps, enterprise apps, platforms & eCommerce) and the unique Build Operate Transfer (BOT) Model (building custom software and product development centers on behalf of global clients such as Atlassian, National Australia Bank, and many more).

    CIMB Thai Bank Public Company Limited is driven by its vision to be a digital-led bank with ASEAN reach delivering wealth management, treasury, consumer banking, corporate banking and ASEAN-related products and services.

    CIMB Group is a leading focused ASEAN bank and one of the region’s foremost corporate advisors. The group is headquartered in Kuala Lumpur, Malaysia, and offers consumer banking, commercial banking, investment banking, Islamic banking and asset management products and services.

    The bank had around 33,000 staff and over 20 million customers as of the end of December 2022.

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  • Bank deposit interest rates continue to fall

    Bank deposit interest rates continue to fall

    Many banks have cut deposit interest rates this month, bringing the average rate to below 9.

    The rate is half a percentage point lower than at the start of this year for terms of less than six months, and one point lower for longer tenors.

    Some banks offered nearly 10% earlier this year.

    As of May 15 more than half the banks offered rates of up to 7-8%, and the rest, slightly higher.

    After a period of rapid growth at the end of 2022, deposit interest rates began to plateau at the beginning of this year as liquidity became abundant, even excessive, according to analysts, especially compared to the end of October last year when a run occurred on Saigon Commercial Bank (SCB).

    Besides, bank lending has eased off, meaning funds mobilization is not an urgent need for them.

    Deposits of less than six months carry a maximum interest rate of 5.5%.

    Banks that offer the highest rates, ranging from 8.5% to 8.9%, include SeABank, ABBank, VietABank, HDBank, and VietBank.

  • Sabeco to install rooftop solar panels at 9 breweries

    Sabeco to install rooftop solar panels at 9 breweries

    Sabeco has partnered with SP Group, a leading utilities group in the Asia Pacific, for the second phase of its rooftop solar energy system installation and operation.

    Saigon Beer-Alcohol-Beverage Corporation (Sabeco) and SP Group signed a Memorandum of Understanding on Thursday to carry out rooftop solar energy system installation and operation with a maximum output of 10.44 MWp (Megawatt-peak) at nine Sabeco’s breweries.

    This will bring the number of Sabeco breweries adopting solar energy by the end of 2023 to 17.

    “This partnership demonstrates our commitment to facilitating the clean energy transition of manufacturing facilities. Leveraging our comprehensive range of sustainable energy solutions, we look forward to supporting Sabeco towards their energy efficiency goals and co-creating a more sustainable future for Vietnam,” Brandon Chia, Managing Director, Sustainable Energy Solutions (Southeast Asia & Australia), SP Group, said.

    The first phase kickstarted in 2020, receiving VND107 billion ($4,7 million) investment from Sabeco with a maximum output of 9 MWp at Cu Chi, Dak Lak, Phu Yen, Quy Nhon, Song Lam, Khanh Hoa, Can Tho, Soc Trang and Ben Tre breweries.

    Under the new MoU, SP has been commissioned to install and operate the rooftop solar panels at nine breweries in Lam Dong, Ha Tinh, Ha Noi, Tay Do, Vinh Long, Nguyen Chi Thanh, Bac Lieu, and Quang Ngai, and expand the system in Cu Chi.

    The installment is scheduled to be completed and operational by the end of Q3. The system of 17 breweries is estimated to provide almost 23% of electricity consumed at the breweries, or 25 million kWh, equivalent to a reduction of 18,000 tons of CO2 emitted annually.

    “The company has sought to implement initiatives and solutions that support sustainable business over the past few years. We have already embarked on various ESG (Environment, Society and Governance) initiatives through our 4C corporate social responsibility pillars (Consumption, Conservation, Culture and Country). We also have implemented Best Brewery Awards to encourage our breweries to embed sustainability mindset,” Bennett Neo, General Director of Sabeco, said.

    Apart from energy usage, Sabeco has implemented other initiatives to mitigate environmental impacts. The company reduced waste used per liter of beer from 5 liters in 2018 to below 3 liters in 2022.

    Sabeco has embarked on plant-based biomass fuel (rice hulls, sawdust, cashew shell, and leaves) usage instead of using fossil fuel-powered boiler, applying the CIP wastewater treatment system; using sustainable packaging (downgauged cans, lightweighted carton boxes and bottles) and reusing beer glasses and cans.

    Sabeco also promotes other sustainability initiatives which focus on local communities where it operates. The recent project “Light up the Rural”, a part of the three-year strategic partnership between Sabeco and the Central Committee of the Ho Chi Minh Communist Youth Union, has constructed 34km of street lighting that uses solar power in 34 rural areas in 34 provinces across the country.

    This initiative aims to improve socio-economic infrastructure to more than 210,000 households. The project will be expanded in 2023 with more than 39 km of solar street lights to be installed.

    Sabeco operates 26 breweries, 11 member trading companies and a network of hundreds of thousands of selling points across the country.

    Sabeco has a wide portfolio of beer brands that are beloved by the people of Vietnam, which includes Bia Lac Viet, Bia Saigon Chill, Bia 333, Bia Saigon Special, Bia Saigon Export, Bia Saigon Lager and Bia Saigon Gold.

  • BNP Paribas Bags Credit Suisse Specialist Team

    BNP Paribas Bags Credit Suisse Specialist Team

    The revolving door at Credit Suisse keeps spinning, as the Swiss bank loses a team of specialists to BNP Paribas.

    BNP Paribas is strengthening its equities team in London by hiring Credit Suisse’s event-driven team. Susan Stryker Marinello, an event-driven specialist for the EMEA region at the Swiss bank, and risk arbitrage traders Andy Martin and Simon Scott are joining the French bank.

    Before their stint at Credit Suisse, the team of specialists previously worked together at Citi.

    The hiring of the unit is an important step following BNP Paribas’ acquisition of Exane in 2021, the sources added. As part of that acquisition, BNP Paribas brought equity trading, research, and derivatives activities in-house after a 17-year partnership with Exane. It said the new hires are part of BNP’s expansion into cash equities following Exane’s return.

    Neither Credit Suisse nor BNP Paribas had any comment.

  • Starbucks Coffee Korea seeks new ventures amid sales slowdown

    Starbucks Coffee Korea seeks new ventures amid sales slowdown

    Starbucks Coffee Korea, which experienced a slowdown in sales growth last year, is seeking new ventures to secure a fresh growth engine.

    The company held a board meeting in late March and revised its articles of association to include 65 additional business purposes, according to industry sources.

    Among the newly added business purposes are electric vehicle charging services, construction, property development and supply, real estate leasing and management, and the operation of golf courses and ski resorts.

    Regarding electric vehicle charging, Starbucks collaborated with Mercedes-Benz Korea to open a charging station at its its The Bukhan riverR outlet in January.

    The company has also expanded its business scope to include lunch box and prepared meal manufacturing, wholesale of processed foods related to its existing business, as well as industrial robot manufacturing and biologic agent manufacturing.

    Furthermore, various types of franchise businesses have been introduced. As of late March, Starbucks Coffee Korea operated all of its 1,813 stores under direct management.

    This photo by Mercedes-Benz Korea shows a electric vehicle charging station at Starbucks Coffee Korea’s The Bukhan riverR outlet.

    This initiative aims to explore diverse new businesses in response to the sales growth slowdown.

    In the previous year, Starbucks Coffee Korea recorded sales of 2.59 trillion won (US$1.94 billion), representing an 8.7 percent increase yearly.

    This growth rate was more than 50 percent lower than the average annual sales growth rate observed from 2012 to 2021.

    The company’s operating profits in 2022 decreased by 48.8 percent to 122.4 billion won, with estimated net profits of 99.3 billion won, down 51.7 percent year on year.

    The poor performance of the previous year can be partly attributed to the recall of giveaway picnic bags due to the detection of harmful substances.

    According to the company, the one-off recall-related expense amounted to 44.4 billion won, which accounted for 38 percent of the decline in its operating profits.