Dragged down by the three-year divorce proceedings between the main owners, Vietnam’s famous coffee brand Trung Nguyen not only seems farther away from its dream of dominating the global coffee market, but is also at risk of falling from grace on the domestic market. Rising competitors and more strict competition Trung Nguyen’s coffee shops number less than half of Highlands’ shops Along with Vinacafé and Nestlé, the Vietnamese coffee market welcomed a range of new brands, including Highlands, The Coffee House, and Starbucks. zing.vn stated that currently the number of Trung Nguyen coffee shops is 60, less than half the number of Highlands stores (150). Furthermore, new coffee brand The Coffee House raised its stores to 80 and has started exporting coffee bought from Cau Dat Farm. Additionally, the domestic market also saw the entry of a brand that was previously entirely alien to coffee—NutiFood. In 2017, NutiFood announced pouring VND1 trillion ($44 million) into growing coffee plants in the Central Highlands province of Dak Lak. This firm is also a strategic shareholder of Phuoc An Coffee JSC, a coffee company in Dak Lak that has an export turnover of $12-15 million per year. Tran Thanh Hai, chairman of NutiFood’s Board of Management, said that the firm will boost processing and exporting organic coffee, targeting the Japanese and the US markets. Previously, three years after entering Vietnam, in early 2016, Starbucks officially started offering its Vietnamese “DaLat Blend” in 56 markets. These high-quality coffee beans are sourced from Dalat (Central… [Read full story]
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