Australian coffee industry sets off a trend of integration Australian coffee

The strong growth of the Australian retail coffee market has spurred major coffee brands to consider asset consolidation, expand their operations and increase their market share, the Australian China Finance online reported.

According to the report, the overall size of the Australian coffee industry is more than A $4 billion, of which the size of the retail coffee sector is about A $3.2 billion, but at present there is not a single dominant industrial giant in the market, but is equally divided by 6700 coffee merchants, with an overall profit of more than A $250 million a year. However, with the growing market, many coffee companies are considering expansionary development strategy, through the acquisition of stores, all-round purchase of coffee roasting, processing equipment and other measures, unified control of quality and cost, in order to expand market share.

RFG (Retail Food Group), an Australian-listed retail food group, took the lead by buying the famous Australian coffee chain Gloria Jean's and Brisbane coffee brand Di Bella for A $164 million and A $47 million respectively last year. After the success of the acquisition, RFG Group will continue to adhere to the "farm-to-coffee cup" principle, directly purchase coffee beans, manufacture and process in the Group's baking and packaging plants in Australia, the United States, New Zealand and other countries, expand the international market, and plan to distribute to the Middle East and China.

The fast food industry is closely followed by the advantage of outlets, and the action of global brands is eye-catching. McDonald's, which has total sales of A $4 billion in Australia, also intends to continue to expand its coffee business. McDonald's currently has 750 McCafes cafes in Australia and plans to open a hipster coffee shop called The Corner in Sydney in the near future.

Withers Group, the Australian subsidiary of convenience store brand 7-Eleven, which has 600 stores in Australia, said that its hot drink business (including coffee and chocolate) grew by 30 per cent last year. To meet market demand, 7-Eleven plans to launch "one dollar coffee", and hot drink sales are expected to reach A $40 million in the coming year. To grab market share, Withers bought the Australian operation of Starbucks Coffee last year and opened a Starbucks with an area of about 200m2 in Brisbane Garden City (Garden City).

The development of the coffee industry in Australia is unique. A large number of coffee shops do not buy coffee grinding equipment on their own, but tend to lease these equipment from coffee bean suppliers, usually for a term of 3-5 years. With the growing development of the coffee industry, many large franchisees have begun to buy equipment for vertical integration of the industry. CEO Dan Gallo, a Melbourne branch of Australian coffee group Coffee Club, also said that Coffee Club is also continuing industrial association and vertical integration and is considering abandoning the use of contracted roasters and buying its own coffee roasters and intends to launch bagged coffee both in stores and online.

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