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Tag: brews

  • Bacha Coffee Brews Global Expansion with Luxury Launches in Beijing and Saudi Arabia

    Bacha Coffee Brews Global Expansion with Luxury Launches in Beijing and Saudi Arabia

    Bacha Coffee, a Moroccan coffee house established in Marrakech in 1910, has further expanded its global footprint with its entry into two new markets, Beijing and Saudi Arabia. This development is a part of the brand’s consistent international growth trajectory.

    In Beijing, the brand has set up shop at the China World Mall, offering a multi-dimensional experience that integrates retail, takeaway, and a cozy Coffee Room seating area. This location showcases the brand’s extensive selection of over 200 specialty coffees, all of which are brewed using 100% Arabica beans sourced from 35 coffee-growing regions worldwide.

    The 210-square-meter Beijing store features a boutique that sells loose and packaged coffees, gift boxes, and accessories. Coffee Masters are readily available to assist customers and grind coffee beans on demand. The store also includes a 25-seat Coffee Room, featuring design elements inspired by the brand’s Moroccan heritage.

    Taha Bouqdib, President and CEO of V3 Gourmet, expressed his excitement over this latest expansion. “Our new location is designed to spark the curiosity of our guests, much like how coffee takes us on journeys to distant locales,” he said. “We’ve blended the old with the new in a single experience, honoring our past while paving the way for the future, with 100% Arabica specialty coffee taking center stage in this vibrant scene of life.”

    The latest openings in Beijing and Riyadh are part of Bacha Coffee’s extensive expansion across Asia, Europe, and the Middle East. The brand currently operates 42 stores in 16 cities globally, including Paris, Tokyo, Seoul, Dubai, Singapore, Hong Kong, and Taipei. In addition, the brand made its debut in Thailand last year.

    Questions & Answers

    How many specialty coffees does Bacha Coffee offer?
    Bacha Coffee offers an extensive selection of over 200 specialty coffees.

    Where are the newest Bacha Coffee stores located?
    The newest Bacha Coffee stores are located in Beijing, China, and Riyadh, Saudi Arabia.

    How many locations does Bacha Coffee operate worldwide?
    Bacha Coffee currently operates 42 locations in 16 cities worldwide.

  • Jago Coffee: Indonesia’s Innovative Cart Startup Brews Up $12M in Latest Funding Round

    Jago Coffee: Indonesia’s Innovative Cart Startup Brews Up $12M in Latest Funding Round

    Jago Coffee, an Indonesian mobile coffee service, recently raised $12 million in a Series B funding round bringing its total capital to over $20 million. The company is known for dispensing reasonably priced beverages from fully electric carts, making it an accessible option for a broad range of consumers.

    Funding Details

    The primary investors in the recent funding round were Beenext, alongside other contributors such as Intudo Ventures and Orzon Ventures. The infusion of capital is planned to support and accelerate the company’s expansion efforts, despite the recent financial figures indicating an increase in losses alongside growing revenue.

    Jago’s Unique Approach

    Jago Coffee has a unique business model that aligns closely with local street vendor practices. The company operates fully electric carts and offers coffee that is affordable, with prices starting at approximately $0.50. This approach makes its service accessible to a large segment of consumers.

    The company has also invested in technology, developing its own tech stack. This includes the use of machine learning to pinpoint potential areas for expansion. The company also prides itself on its dedicated applications for both baristas and customers, further enhancing its service delivery.

    Growth and Financial Performance

    Despite the challenges, Jago has experienced significant growth. There was a more than thirteenfold increase in size in 2023. Moreover, the company reported a 17% rise in revenue in December 2024. However, it should be noted that during the same period, the company’s losses more than doubled.

    This investment in Jago indicates a shift in the venture capital landscape. Investors are becoming more interested in companies that use software to manage local, physical operations, rather than placing their sole focus on digital products.

    Questions & Answers

    What is Jago Coffee’s business model?

    Jago Coffee operates fully electric carts, similar to local street vendors, to deliver affordable coffee to a mass market of consumers.

    How much has Jago Coffee raised in its recent Series B funding round?

    Jago Coffee has recently raised $12 million in a Series B funding round.

    How is venture capital shifting in relation to companies like Jago Coffee?

    Investors are increasingly interested in businesses that use software to manage physical, local operations, as opposed to focusing solely on digital products.

  • Cotti Coffee Takes on the UK: China’s Rapidly Growing Chain Brews Up European Expansion

    Cotti Coffee Takes on the UK: China’s Rapidly Growing Chain Brews Up European Expansion

    Cotti Coffee, a rapidly expanding Chinese coffee chain, has announced plans to venture into the UK market. This move is part of a wider strategy to accelerate the brand’s growth across Europe.

    Unveiling in London

    The budget-friendly coffee chain will make its UK debut with two stores in London, set to open on Middlesex Street and Camden High Street. This comes after Cotti Coffee’s recent successful launches in European cities such as Paris, Cologne, Düsseldorf, Hamburg, Barcelona, and Madrid. These continental outlets mark the brand’s first steps into the European market.

    Digital-First Strategy

    Cotti Coffee operates with a digital-first, small-format store model and is noted for offering aggressive discounts. This approach has earned the brand recognition in its home country of China, where it is seen as a key competitor to Luckin Coffee.

    Future Expansion Plans

    Beyond the UK, Cotti Coffee has plans for further expansion into several other European countries, including Italy, Belgium, Portugal, and the Netherlands.

    Cotti Coffee was established in 2022 by a pair of former Luckin Coffee executives. Today, the brand is operational in 28 countries worldwide, including locations in Vietnam, South Korea, Australia, and Malaysia.

    Questions & Answers

    Question 1: What is Cotti Coffee’s store model?
    Answer: Cotti Coffee operates a digital-first, small-format store model, which means they prioritize their online presence and compact store locations.

    Question 2: Where is Cotti Coffee planning to expand in Europe?
    Answer: The company has plans to expand into Italy, Belgium, Portugal, and the Netherlands as part of its broader European growth strategy.

    Question 3: Who founded Cotti Coffee and when was it established?
    Answer: Cotti Coffee was founded in 2022 by two former executives from Luckin Coffee, another major coffee chain in China.

  • Starbucks Brews Success with Q1 Sales Surge: ‘Back to Starbucks’ Strategy Fuels Global Expansion

    Starbucks Brews Success with Q1 Sales Surge: ‘Back to Starbucks’ Strategy Fuels Global Expansion

    In the first quarter of fiscal 2026, Starbucks has announced a robust revenue of US$9.9 billion, pointing towards a general expansion in sales and steady growth of its worldwide store chain.

    Global Sales Progress

    Comparable store sales on a worldwide level saw a growth of 4 per cent during the quarter. Primarily, this rise was fuelled by a 3 per cent growth in transactions and a 1 per cent increase in the average ticket size. Unlike previous quarters, this expansion was mainly supported by an increase in customer traffic rather than price escalations.

    Uplift in North American Sales

    In the North American region, inclusive of the US, comparable sales saw a 4 per cent rise. This included the first transaction growth in the US in the past eight quarters. The management credits this growth to improvements in operations and a renewed focus on the in-store experience under the guidance of CEO Brian Niccol’s ‘Back to Starbucks’ initiative.

    CEO Brian Niccol expressed his satisfaction with the results, saying, “Our Q1 results indicate that our ‘Back to Starbucks’ strategy is proving effective, and we believe we are advancing faster than our original schedule.”

    Strong Performance in International Markets

    The international markets posted even stronger outcomes, with comparable store sales rising by 5 per cent. China emerged as the strongest performer, with a 7 per cent growth in comparable sales, backed by a 5 per cent increase in transactions and a 2 per cent rise in the average ticket size.

    During the quarter, Starbucks launched 128 new stores, raising its worldwide total to 41,118 locations. Currently, 52 per cent of the stores are company-operated and 48 per cent are licensed. The US and China remain the largest markets for the company, accounting for 61 per cent of all stores, with a total of 16,911 and 8,011 locations respectively.

    Future Expectations

    Starbucks anticipates the current growth trend to persist. The company forecasts at least 3 per cent comparable sales growth in the current fiscal year and aims to launch between 600 and 650 new stores globally, underscoring its confidence in its revival and expansion strategies.

    In a recent development, Starbucks declared its intentions to sell a controlling stake in its China operations to Boyu Capital, in a US$4 billion deal. However, it will retain a 40 per cent stake while continuing to own and license the Starbucks brand and intellectual property.

    Questions & Answers

    What was the growth rate of global comparable store sales in the first quarter?
    The global comparable store sales grew by 4 per cent in the first quarter.

    What was the primary factor for the rise in global sales for Starbucks in the quarter?
    The rise was primarily supported by a growth in customer traffic rather than price escalations.

    What are Starbucks’ growth plans for the current fiscal year?
    Starbucks plans to achieve at least 3 per cent comparable sales growth and intends to launch between 600 and 650 new stores globally.

  • Tim Hortons Brews Up Localization Strategy to Double South Korean Presence in 2022

    Tim Hortons Brews Up Localization Strategy to Double South Korean Presence in 2022

    Renowned Canadian coffee company, Tim Hortons, is ramping up its efforts to establish a stronger operational presence in South Korea. The firm’s objective is to more than double its store tally to a total of 50 locations within this calendar year. This strategy is underpinned by a recognition of the importance of localization in propelling its growth in an increasingly competitive coffee industry.

    Currently, Tim Hortons operates 24 outlets, with the majority situated in Seoul and its surrounding metropolitan areas. This year, the company plans to increase its store count by an additional 26, one of which will be a flagship “signature store”. This special location will feature a larger floor space and a more extensive food menu, setting it apart from the standard outlets.

    An Tae Yeol, the Chief Brand Officer of BKR, stated at a recent press conference that the company’s focus for this year would be on stores directly operated by Tim Hortons. This approach is part of their strategy to successfully navigate the fiercely competitive South Korean coffee market. The introduction of franchising is projected to commence next year, albeit with a select group of partners.

    Tim Hortons’ operations in South Korea are managed by BKR, which is also responsible for the operation of Burger King outlets in the country. Previously, the brand had set a goal to open 150 outlets within the first five years of its entry into the South Korean market in 2023.

    Questions & Answers

    What are Tim Horton’s expansion plans in South Korea?
    Tim Hortons aims to more than double its store presence in South Korea within this year, increasing its footprint from 24 to 50 outlets. The company plans to establish a flagship “signature store” with a larger floor space and a broader food menu.

    How does Tim Hortons plan to manage its growth in the highly competitive South Korean coffee market?
    Tim Hortons plans to focus on company-operated stores for the upcoming year as a strategy to remain competitive in the South Korean coffee industry. The company also plans to introduce franchising by next year with a limited number of partners.

    Who operates Tim Hortons in South Korea?
    Tim Hortons in South Korea is operated by BKR, the same company that runs Burger King outlets in the country.

  • Vietnam’s Largest Coffee Chain, Highlands Coffee, Brews Up to $400M Potential IPO

    Vietnam’s Largest Coffee Chain, Highlands Coffee, Brews Up to $400M Potential IPO

    Highlands Coffee, Vietnam’s most prominent coffee chain, is exploring the option of an initial public offering (IPO) in its native country, with the potential to raise between US$300-400 million. The company is currently working alongside a financial advisor, and there are discussions of potentially increasing the number of banks involved in the process.

    Despite the ongoing discussions, details surrounding the IPO’s size remain flexible and may be subject to change. Considerations are being made carefully, with all the necessary precautions taken to ensure a successful outcome.

    Highlands Coffee’s major stakeholder is Jollibee Foods, a leading fast-food group based in the Philippines. Jollibee Foods holds a 60% stake in SuperFoods Group, the parent company of Highlands Coffee. They began their investment in the coffee chain back in 2012.

    The origins of Highlands Coffee date back to 1999, when Vietnamese-American entrepreneur David Thai established the business. From its humble beginnings, the chain has expanded significantly and now boasts a total of 928 outlets. These outlets are spread not only across Vietnam but also in various international locations.

    Questions & Answers

    Who is the biggest stakeholder in Highlands Coffee?
    The biggest stakeholder in Highlands Coffee is Jollibee Foods, a fast-food group based in the Philippines. They own a 60% stake in SuperFoods Group, the parent company of Highlands Coffee.

    Who founded Highlands Coffee, and when was it established?
    Highlands Coffee was founded by Vietnamese-American entrepreneur David Thai in 1999.

    How many outlets does Highlands Coffee have, and are they only located in Vietnam?
    Highlands Coffee has a total of 928 outlets. While many of these are located in Vietnam, the chain also has a presence in various international locations.

  • Mixue: China’s Beloved Tea and Ice Cream Chain Brews Up Its First US Store in Hollywood

    Mixue: China’s Beloved Tea and Ice Cream Chain Brews Up Its First US Store in Hollywood

    The popular Chinese ice cream and tea chain, Mixue, has successfully established its first US location in Los Angeles, California, marking the brand’s debut in the American market.

    Offerings and Customisation

    Situated on the famous Hollywood Boulevard, the new Mixue store provides customers with the chain’s traditional menu. The offered choices encompass a variety of beverages including ice cream, pure tea, fruit drinks, milk tea, and coffee. One of the unique aspects of Mixue’s service is the ability for customers to personalize their drinks. They can adjust the sugar content to their liking and select from a range of toppings for certain beverages.

    Global Expansion

    Since its establishment in 1997, Mixue has been diligently working on its international growth. The brand expanded outside of China for the first time in 2018, with the opening of a store in Vietnam. Following this, Mixue entered several other markets, including Australia, South Korea, Thailand, Malaysia, Singapore, and the Philippines.

    Growth Plans in the US

    The US is the next frontier for Mixue’s ongoing international expansion. The company has expressed its intention to enhance its presence in the American market further. A store in New York is anticipated to open soon as a part of this expansion plan.

    Zhang Hongfu, the Global CEO of Mixue, stated that the company is committed to its worldwide strategic growth. He added, “Our aim is to consistently broaden our store network, thereby enabling more local consumers to savour our high-quality, affordable drinks.”

    Presently, Mixue Group runs over 53,000 stores globally.

    Questions & Answers

    What does the Mixue menu offer in their new US store?
    The menu in the new Mixue US store consists of a range of beverages such as ice cream, pure tea, fruit drinks, milk tea, and coffee.

    Where did Mixue first expand to outside of China?
    The first overseas expansion of Mixue was in Vietnam, which took place in 2018.

    What are the future expansion plans of Mixue in the US?
    Mixue plans to strengthen its presence in the US with the opening of a new store in New York, which is expected to happen in the near future.

  • Bacha Coffee Brews Global Expansion with Lavish Flagship Store Debut in Tokyo’s Ginza District

    Bacha Coffee Brews Global Expansion with Lavish Flagship Store Debut in Tokyo’s Ginza District

    Bacha Coffee, a Moroccan coffee brand, has made a significant stride in its global growth strategy by establishing its inaugural Japanese flagship store in Tokyo’s luxurious Ginza district.

    Store Features and Design

    The flagship, situated in Ginza’s highly competitive 5-chome luxury retail sector, spans three levels and occupies 377 square meters. It incorporates a retail boutique on the ground floor, complemented by two coffee rooms on the upper levels, thereby positioning the location as a dual-purpose retail and hospitality destination.

    The design concept is inspired by Bacha Coffee’s roots at Dar el Bacha in Marrakech, with the aesthetics adapted to cater to the Japanese market. The interior showcases a blend of red ochre tones, a black-and-white checkered floor, geometric lattice motifs, and intricately carved cedar wood elements, reflecting a perfect fusion of Moroccan and Japanese aesthetics.

    Coffee Selection

    The Ginza-based establishment offers patrons a selection of over 200 varieties of 100% Arabica coffee, which are meticulously sourced from 35 countries worldwide, including Yemen, Ethiopia, Jamaica, and Hawaii. The assortment includes single-origin coffees, blends, and flavored options, alongside Naturally CO2 Decaffeinated coffee varieties.

    Maranda Barnes, Chief Commercial Officer of Bacha Coffee, has described the Ginza location as more than just a boutique. According to her, it serves as an iconic representation of Bacha Coffee in Asia. Barnes further described the location as “a true invitation to travel, a place where each cup tells a story of craftsmanship, passion, and savoir-faire.”

    Earlier in the year, Bacha Coffee indicated plans to expand its footprint in Japan via a franchising agreement with local railway operator The Tokyu Group.

    Global Presence

    Currently, Bacha Coffee operates 37 locations across 14 cities spanning Asia, Europe, and the Middle East. These locations include Paris, Seoul, Dubai, Singapore, Taipei, and Hong Kong. The brand has expressed its ambitious vision of establishing a presence in major global capitals by the year 2030.

    Questions & Answers

    Where is Bacha Coffee’s first Japanese flagship store located?
    The flagship store is located in Tokyo’s luxurious Ginza district.

    What are some unique features of the Ginza store?
    The store is uniquely designed, blending Moroccan and Japanese aesthetics. It spans three levels and incorporates a retail boutique and two coffee rooms.

    What is Bacha Coffee’s expansion target by 2030?
    Bacha Coffee aims to establish a presence in major global capitals by the year 2030.

  • Chagee Brews a Unique Blend: First Pet-Friendly Tea Store Launches in Southeast Asia

    Chagee Brews a Unique Blend: First Pet-Friendly Tea Store Launches in Southeast Asia

    Chagee, a Chinese tea chain, has broadened its horizons with the unveiling of its inaugural pet-friendly store in Eastwood City, Manila, in the Philippines. This ground-breaking concept in Southeast Asia has been designed to appeal to both pet owners and their beloved fluffy friends.

    Embracing Pet-Friendly Experiences

    The novel store offers an alfresco seating arrangement, complete with weather-resistant benches. The floor has been designed to be non-slip to ensure a pet-friendly environment. The store is also equipped with air purifiers and incorporates various safety-oriented aspects to cater to pets. Notably, the entrance is marked by a rooftop cat fixture and a dog sculpture, signifying the store’s pet-loving ethos.

    Additionally, pets are welcomed by the provision of free water served in specially designated bowls. The store also takes into consideration the tea lovers’ needs. An encased tea bar with transparent glass panels allows customers to observe their drinks being prepared while keeping the tea safe from pet fur and dander.

    The store also prioritizes cleanliness and hygiene. It boasts a cleaning station equipped with wet wipes, lint rollers, and trash bags. An inside handwashing station is also available to further promote sanitary practices.

    Creating Community-Oriented Spaces

    According to Christopher Tiong, the General Manager of Chagee Philippines, the launch of this new concept aligns perfectly with the ongoing surge in pet ownership. The initiative mirrors the company’s ongoing effort to create more community-oriented spaces.

    “We have always used our tea to bring people together, and the bonds we share with our pets are equally special”, Tiong said. “With this innovative store, we aim to merge tea culture and pet companionship in a warm, welcoming space that everybody can enjoy.”

    Chagee sets itself apart through its distinct luxury-leaning, minimalist brand identity. The chain is renowned for its commitment to using real tea leaves, fresh milk, and refraining from the use of any artificial sweeteners.

    Questions & Answers

    What is Chagee’s pet-friendly store concept?
    Chagee’s pet-friendly store concept is a novel space designed to cater to both pet owners and their pets. It offers alfresco seating, non-slip flooring, air purifiers, and safety-focused features. Pets are provided with free water and there is an enclosed tea bar for customers.

    Where is Chagee’s first pet-friendly store located?
    Chagee’s first pet-friendly store is located in Eastwood City, Manila, Philippines.

    What differentiates Chagee from other tea chains?
    Chagee differentiates itself by using real tea leaves and fresh milk in their drinks while avoiding artificial sweeteners. Its brand identity is minimalist and leans towards luxury.

  • South Korean Coffee Phenomenon ‘The Venti’ Brews US Expansion, Starting with Las Vegas Debut

    South Korean Coffee Phenomenon ‘The Venti’ Brews US Expansion, Starting with Las Vegas Debut

    South Korea’s popular coffee brand, The Venti, has announced plans to make a grand entrance into the American market in the coming year, starting with a flagship store in Las Vegas.

    Strategic Partnership for Expansion

    The strategic decision to tap into the American market is a result of a fresh partnership between SNC Sein, The Venti’s parent company, and JINP. This collaboration will facilitate the establishment of multiple The Venti outlets across the western regions of the United States.

    From Humble Beginnings to Global Reach

    The Venti, since its inception in 2014, has been known for its affordable, high-quality coffee. The company has shown impressive growth, with over 1,000 stores currently operating in its home country, South Korea. In addition, The Venti has successfully expanded its reach beyond the Korean borders, with branches in Canada, Jordan, and Vietnam.

    Brand Enhancement through Celebrity Endorsement

    The coffee chain has also endeavored to elevate its global brand image by appointing internationally acclaimed K-pop artist, G-Dragon, as its worldwide ambassador. This move is expected to bolster the brand’s image and visibility as it continues to branch out into new international territories.

    Questions & Answers

    When is The Venti expected to enter the US market?
    The Venti is planning to venture into the US market in the next year.

    Where will the first US store of The Venti be located?
    The first US store of The Venti will be located in Las Vegas.

    Who has been appointed as the global ambassador of The Venti?
    K-pop star G-Dragon has been appointed as the global ambassador of The Venti.

  • Highlands Coffee Brews Up Success with Record 17% Earnings Jump in Q3

    Highlands Coffee Brews Up Success with Record 17% Earnings Jump in Q3

    Highlands Coffee, the biggest coffeehouse chain in Vietnam, noted an earnings before interest, taxes, depreciation and amortization (EBITDA) of 666 million Philippine pesos, equivalent to US$11.3 million, for the third quarter. This demonstrates a 17.1% growth compared to the same period last year and is the highest quarterly EBITDA since Q3 2023 when Jollibee Foods Corporation, its parent company, started releasing its financial data separately.

    Contribution to Parent Company’s Earnings

    The Vietnamese coffee brand contributed about 6.1% to the total EBITDA of Jollibee Foods Corporation, which is based in the Philippines. Moreover, it made up 29% of the corporation’s coffee and tea sector. Sales at locations that have been in operation for a minimum of 15 months saw a 17.2% increase.

    The EBITDA of Highlands Coffee for the first three quarters of 2025 experienced a 9.5% rise, amounting to 1.9 billion Philippine pesos.

    Chain Expansion

    The coffee chain operates 928 branches both domestically and internationally, 109 of which were inaugurated within the first nine months of the year. Originally established in 1999 as a packaged coffee vendor in Hanoi, the business transitioned into the coffeehouse industry in 2002 with its pioneer branch in Ho Chi Minh City. The chain was later acquired by Jollibee Foods Corporation in 2012.

    Business Strategy

    David Thai, the founder and CEO, acknowledged earlier this year that the coffee chain has witnessed positive outcomes due to its business model, customer-centric approach, and well-defined positioning in terms of products, pricing, and taste. The company streamlined its operations and expanded methodically. Moreover, the firm primarily focuses on enhancing its flavor profiles before investing in marketing efforts.

    Highlands Coffee is planning to go public in Vietnam, Thai confirmed, although a specific timeline was not provided. Industry analysts and securities agencies forecast that it will likely be listed in 2026-2027, coinciding with an anticipated wave of initial public offerings.

    Vietnamese F&B Market

    In the first half of the current year, the food and beverage sector in Vietnam generated VND406.1 trillion, equivalent to US$15.4 billion in revenues, a slight increase from the VND403.9 trillion recorded a year earlier, as stated by digital management solution provider iPOS.

    Despite major holidays such as the Lunar New Year in February and the Reunification Day at the end of April not boosting sales as expected, Vietnamese consumers seem to be maintaining their F&B expenditures. However, the report also indicated that the number of F&B locations is dwindling and the market is heading towards intense competition.

    Questions & Answers

    What is the current contribution of Highlands Coffee to Jollibee Foods Corporation’s total EBITDA?
    Highlands Coffee contributes approximately 6.1% to Jollibee Foods Corporation’s total EBITDA.

    What is the business strategy of Highlands Coffee according to its CEO, David Thai?
    The business strategy of Highlands Coffee is based on its unique business model, customer-centric approach, and distinctive positioning in terms of products, pricing, and taste. The company prioritizes developing its flavor profiles before allocating resources to marketing.

    What is the projected timeline for Highlands Coffee to go public in Vietnam?
    Securities firms and analysts predict that Highlands Coffee will go public in Vietnam between 2026 and 2027.

  • Lavazza Brews Up First Hong Kong Store: A New Chapter in Coffee Culture

    Lavazza Brews Up First Hong Kong Store: A New Chapter in Coffee Culture

    Italy’s iconic coffee brand, Lavazza, has recently established its inaugural store in Hong Kong’s bustling financial district, Central. This is a result of a strategic partnership with Yum China.

    The new location aims to provide a unique coffee experience by offering Lavazza’s premium Italian coffee blends and an extensive variety of beans from various parts of the globe.

    In a statement, Yum China conveyed its commitment to enhance the daily life of Hong Kong’s residents through Lavazza’s internationally acclaimed coffee.

    The opening of the store is a significant move in Lavazza and Yum China’s wider regional strategy. The two firms have ambitious plans for mainland China, intending to broaden Lavazza’s presence to include 1000 cafes by 2025. This expansion is fueled by a generous initial investment of US$200 million and the valuable in-depth market knowledge of Yum China.

    The collaboration in Hong Kong is a reflection of the companies’ shared objective to bring authentic Italian coffee experiences to urban professionals. Not only does this allow them to enjoy high-quality beverages, but it also bolsters Lavazza’s regional influence.

    Questions & Answers

    What is Lavazza’s plan for expansion in mainland China?
    Lavazza, in partnership with Yum China, plans to broaden its network to include 1000 cafes by 2025.

    What is the significance of Lavazza’s collaboration with Yum China in Hong Kong?
    The collaboration aims to offer authentic Italian coffee experiences to urban professionals in Hong Kong, while also strengthening Lavazza’s regional presence.

    What kind of coffee does the new Lavazza store in Hong Kong offer?
    The store provides Lavazza’s premium Italian coffee blends as well as a wide selection of beans sourced from around the world.

  • Tea Tonic: Australian Organic Tea Brand Brews Up Expansion in Malaysia with Aeon Retail Partnership

    Tea Tonic: Australian Organic Tea Brand Brews Up Expansion in Malaysia with Aeon Retail Partnership

    Tea Tonic, a renowned Australian organic tea brand, is marking its arrival in Aeon Group’s Malaysian outlets, a move that is part of its broader strategy to expand across Southeast Asia.

    Support from Global Victoria

    The brand’s expansion into Malaysia is a result of the support it has received from Global Victoria. This assistance has enabled the Melbourne-based firm to extend its export reach to several countries, including Singapore, Thailand, New Zealand, and now Malaysia.

    About Tea Tonic

    Tea Tonic has its roots in 1998 when it was founded by Lisa Hilbert, a naturopath and herbalist. The brand prides itself on producing certified organic teas that are naturopath-formulated and made from natural ingredients that are Australian-certified organic.

    The company offers its products in two formats – loose-leaf and individually wrapped teabags. Additionally, it also provides tea accessories and gift sets.

    Some of the brand’s most popular blends are the Apple Tree Tea, Blue Magic Tea (with butterfly pea), Body Reset Tea, Chocolate Chai Tea, Chamomile Tea, and French Earl Grey Tea.

    Message from Tea Tonic

    Tea Tonic expressed its excitement about the launch in Malaysia, stating, “Malaysian consumers can now enjoy our colourful range of Melbourne-crafted teas made with organic ingredients that celebrate both flavour and wellbeing.”

    Questions & Answers

    Question: What is Tea Tonic’s expansion strategy?
    Answer: Tea Tonic’s expansion strategy focuses on broadening its reach across Southeast Asia, and its recent launch in Malaysia’s Aeon Group outlets is a part of this plan.

    Question: Who is the founder of Tea Tonic?
    Answer: The Australian organic tea brand, Tea Tonic, was founded by Lisa Hilbert, a naturopath and herbalist, in 1998.

    Question: What products does Tea Tonic offer?
    Answer: Apart from offering a wide variety of tea blends like Apple Tree Tea, Blue Magic Tea, Body Reset Tea, Chocolate Chai Tea, Chamomile Tea, and French Earl Grey Tea, the brand also provides loose-leaf tea, individually wrapped teabags, tea accessories and gift sets.

  • Starbucks Strikes Success: Turnaround Strategy Brews Positive Sales Growth After Two Years

    Starbucks Strikes Success: Turnaround Strategy Brews Positive Sales Growth After Two Years

    Starbucks has finally shown a surge in comparable sales growth, marking the first increase in nearly two years. This promising development suggests the early success of the renowned coffee company’s turnaround strategy.

    Turnaround Indicators

    The fourth quarter, which ended on September 28, witnessed a 1 per cent increase in global comparable store sales. This significant growth, the first in seven quarters, was mainly due to an increase in comparable transactions.

    In North America, and particularly in the US, comparable store sales remained steady. There was a 1 per cent rise in the average ticket, which was counterbalanced by a 1 per cent drop in comparable transactions. This is a notable improvement from a 2 per cent dip in the third quarter, a change credited to the positive momentum generated by the ‘Back to Starbucks’ initiative. Moreover, the company pointed out that comparable sales in the market began to show positive growth as of September.

    International Growth

    International comparable store sales saw a 3 per cent increase, with China’s comparable store sales experiencing a 2 per cent hike.

    The consolidated net revenues for the quarter grew by 5 per cent, amounting to US$9.6 billion, thus extending the 4 per cent rise witnessed in Q3.

    Brian Niccol, the chairman and CEO, expressed his optimism regarding the progress of the ‘Back to Starbucks’ strategy. He stated, “It’s clear that our turnaround is taking hold. Our return to global comp growth and the momentum we are building give me confidence that we are on the right path to deliver the very best of Starbucks for our customers, partners and shareholders.”

    However, for the entire year, comparable store sales witnessed a 2 per cent fall, with a 2 per cent decline in North America and the US, a flat growth in international markets, and a 1 per cent decrease in China.

    Financial Summary

    On the financial front, net earnings plummeted by 85 per cent to $133 million in the fourth quarter and fell by 50 per cent to $1.8 billion for the entire year.

    Starbucks closed 107 net stores in Q4, including 627 stores, with a majority (90 per cent) being in North America. This aligns with the restructuring plan announced earlier, where Starbucks unveiled its plans to cut its North American store network by approximately 1 per cent and eliminate around 900 non-retail partner roles.

    At the quarter’s end, Starbucks’ global portfolio consisted of 61 per cent of stores located in the US and China, including 16,864 stores in the US and 8,011 outlets in China.

    Questions & Answers

    What is the ‘Back to Starbucks’ strategy?
    The ‘Back to Starbucks’ strategy is a turnaround plan designed to boost the company’s sales growth and profitability.

    How has this strategy impacted Starbucks’ performance?
    The ‘Back to Starbucks’ strategy has positively impacted the company, resulting in a 1 per cent increase in global comparable store sales and a 5 per cent rise in consolidated net revenues in Q4.

    What is the future plan of Starbucks in light of the recent restructuring?
    Starbucks plans to focus more on the US and Chinese markets, which currently comprise 61 per cent of the company’s global portfolio. The company also intends to reduce its North American store network by about 1 per cent and cut 900 non-retail partner roles as a part of its restructuring plan.

  • Hunt And Brew Launches Australia’s Highest-protein Milk, Targeting Health-conscious Millennials And Gen Z

    Hunt And Brew Launches Australia’s Highest-protein Milk, Targeting Health-conscious Millennials And Gen Z

    Hunt and Brew, an Australian food and beverage company, has introduced its high-protein milk product, Extra Protein Milk 1L, to the national market. This newly launched product is now available at all Coles supermarkets throughout Australia.

    Product and Market Position

    The brand asserts that this product has the highest dairy protein content currently available, boasting a robust 16 grams of dairy protein per 250ml serving. This offering outstrips standard milk products by 80%, positioning it as a standout in the dairy market.

    The senior brand manager of Hunt and Brew, Jake Calabrese, expressed the company’s objective in introducing this high-protein milk. He cited a distinct market opportunity in the conventional dairy milk sector. The company designed this premium protein-rich milk to satisfy the increasing consumer demand for accessible, wholesome, and natural solutions to augment protein intake.

    Product Source and Uses

    The milk for this product comes from high-quality farms in the Margaret River and the adjacent Southwest region of Western Australia. It is versatile and works well in coffee and tea. It is also a perfect high-protein addition to breakfast cereals and smoothies.

    Target Audience and Market Strategy

    The launch targets younger generations, particularly millennials and generation Z. This strategy aligns with Hunt and Brew’s wider efforts to regain significance in the dairy industry.

    Calabrese further elaborated on the company’s mission, stating that Hunt and Brew aspires to improve the dairy sector. The company aims to attract younger, health-conscious millennials and generation Z back to the dairy milk category.

    Questions & Answers

    What is the protein content of the new Extra Protein Milk from Hunt and Brew?
    The Extra Protein Milk from Hunt and Brew contains 16 grams of dairy protein per 250ml serve, 80% more than standard milk.

    Who is the target market for Hunt and Brew’s new product?
    The company is targeting millennials and Gen Z who are more health-focused and interested in natural, convenient ways to increase their protein intake.

    Where is the milk for Hunt and Brew’s product sourced from?
    The milk is sourced from high-quality farms in the Margaret River and the surrounding Southwest region of Western Australia.