STiR coffee and tea magazine

Volume 5, Number 1

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STiR tea & coffee industry international 51 A latte at the Helio Cafe makes waves Spacious interior at Highlands Coffee Tiled floors and tall ceilings at the Khanh Casa A frappe toast at Starbucks tons of coffee, including soluble coffee and white cof- fee under the G7 brand. The company says its prod- ucts are Fair Trade and UTZ certified. While some TN coffee is available in Asian grocery stores over- seas and on-line through distributors, Trung Nguyen exports only about 1,600 tons, most of it green coffee. In order to finance expansion, with its "war on Starbucks," Trung Nguyen says it will sell up to 15% (perhaps eventually 30%) of its shares. Starbucks Global coffee giant Starbucks opened its flagship store in Vietnam at the busy Nga Sau Phu Dong roundabout in the heart of old Saigon's District 1. It's one of 13 units in Vietnam (Hanoi, 2; HCMC, 11) managed by franchisee Maxim's Group of Hong Kong. Starbucks recognizes that Vietnam, unlike China, has a long-standing coffee-drinking culture, but the stores are unapologetically Western. Highlands Coffee Highlands Coffee occupies the middle ground between native-born Trung Nguyen and foreign-born Starbucks. It began in 1998 in Hanoi selling branded coffee prod- ucts. Founder David Thai was the first overseas Vietnamese to incorporate a busi- ness in Vietnam. HC opened its first retail unit in Hanoi, in 2002. It now has more than 80 retail units in Hanoi, Da Nang, Haiphong, Binh Duong, and Bien Hoa. In late 2011, Viet Thai International, owner of Highlands Coffee, sold 50% of its shares to Jollibee Foods of Manila. Viet Thai and Jollibee, known as Super Foods Group, purchased the Vietnamese restaurant chain, PHO24, with 73 fast food out- lets in Vietnam, Philippines, Korea, Cambodia, and Hong Kong. Highland cafés, which feature a conservative red and white color scheme in a modern setting reminiscent of the Seattle's Best Coffee (SBC) chain, offer Viet- namese iced tea with condensed milk, black iced tea, and a selection of "frozen" drinks, flavored with matcha and green tea jelly, and cream, as well as, "Cara- mel Phin Freeze," a combination of sweetened drip coffee, caramel, and whipped cream. Western-style espresso-based beverages made from a blend of Arabica and robusta beans are listed under "other drinks." Banh mi sandwiches, cakes, and pastries round out a fairly standard café menu. Highland's owner, Viet Thai, owns the Vietnam franchise for Nike, ALDO Shoes, La Vie en Rose lingerie and Hard Rock Café.

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