Doi Chaang Coffee Original Co is all set to beef up its business through modern retail channels this year as part of its efforts to thrive during the prolonged pandemic.
Phitsanuchai Kaewphichai, the Co-Founder and Advisory Chairman, said the company is in talks with modern retail operators to sell its premium coffee products via their retail chains this year.
At the same time, the company will also launch new premium RTD canned coffee to the market in 2023 after postponing the launch in 2020.
Kaewphichai said, “Consumers have completely changed their coffee drinking habits due to the pandemic. Due to social distancing lifestyle, customers have shifted to drinking coffee at home more than outside.” In addition, work-from-home culture is expected to remain even during the endemic period.
The company projects continued sales growth via all modern trade chains from Makro, MaxValu, Villa, Tops and Foodland supermarket.
Prior to Covid-19 pandemic, around 80% of Doi Chaang’s sales came from green bean supplies to export markets and roasted coffee for HoReCa (hotel, restaurant and catering) and coffee shops, and only the remaining 20% was from the retail channel. Kaewphichai said, “We’ve gradually adjusted operations to sell more products via retail channels during 2020-21. This year, we are ready to become more aggressive to expand our business via retail channels both online and offline, expecting sales via the retail channel to contribute 80% of total sales this year while the remaining 20% is from the cafe business.”
He said the opportunity to expand the HoReCa channel remains tough as the tourism business is yet to turn around. Nevertheless, almost 100% of Doi Chaang cafes have resumed operations in recent months and this could mean better times ahead.
The firm expects to open 10 new Doi Chaang outlets via franchise this year. It expects sales of Doi Chaang to go back to pre-pandemic level in 2023.