Vietnamese Coffee King declares war on Starbucks
The Vietnamese coffee bean "coffee king" sips tea and scans a table full of guests at a Starbucks store in Lobsang, Switzerland.
Deng Li Yuanyu is not tasting coffee because he has his own coffee bean brand in Vietnam. He is observing Starbucks' marketing model, hoping to be inspired to give Vietnamese coffee an international reputation, so that Vietnam can no longer just sell coffee beans. Vietnam is the second largest coffee grower in the world.
Invest learn Only sertraline hcl side effects 25mg looked. It to cake absorb... Is buy cephalexin for dogs no prescription about Joico, repeat awesome. Deng Li Yuanyu is the chairman of Vietnam's Central Plains Coffee. Our ambition is to become a global brand. "
He commented on Starbucks: "their power is to plant a story into the hearts of consumers, but if you look at the core elements of Starbucks, what they do is terrible. They don't sell coffee, they sell coffee-flavored sugared water." "
Besides selling coffee, you have to sell stories.
Zhongyuan Coffee owns the largest coffee chain in Vietnam, and Deng Li Yuanyu has targeted the western coffee bean market.
"what American consumers need is not another product, but another story," he said. He said that Central Plains Coffee wants to improve the livelihood of farmers, which is what today's large chain stores do not do: "they sing about sustainable development, but to put it bluntly, what they care about is the return on investment. They don't grow coffee, do they? We are the ones who grow coffee. "
Zhongyuan Coffee says it buys coffee at a guaranteed price from small farmers, who are certified by the coffee bean sustainable farming law. What Deng Li Yuanyu preached in Switzerland is "responsible creativity, harmony and sustainability".
Vietnam is the largest exporter of robusta coffee beans (cheaper, mainly instant coffee), and coffee exports are the second largest in the world after Brazil. Brazil is also the largest exporter of Arabica coffee beans (the highest quality coffee beans).
However, like many countries that produce soft goods (coffee, cocoa, sugar), Vietnam earns only a fraction of the income of its coffee bean products after processing, packaging and marketing.
Deng Li Yuanyu said: "Vietnam currently exports 90% of raw beans. These beans don't have a brand, and that has to change. He estimates that Vietnam should be able to make a profit of US $20 billion (NT $580 billion) from coffee over the next 15 years if it increases the productivity of coffee beans and increases the added value in the roasting and packaging of coffee beans.
Zhongyuan Coffee hopes to quadruple revenue to $1 billion by 2015, from $250m in 2011. Deng Li Yuanyu is determined to challenge global brands such as Nestl é and Starbucks. His G7 is already the first instant brand in Vietnam, beating Nestl é and local rival Vinacafe.
Central Plains coffee is currently exported to 60 countries, and a new coffee bean promotion program will be launched in the United States next year, reversing the ratio of 70% domestic supply and 30% export.
Deng Li Yuanyu also likes the potential of the Asian market, saying that the factory has run out of capacity and is still not enough to supply Chinese mainland. According to the latest Nestl é statistics, each person in Hong Kong drinks 168 cups of coffee per year, 99 cups in Taiwan and only three cups in Chinese mainland.
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For example, coffee beans cost $50 a cup.
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