CoffeeWORKS targets Bt400m revenue with 'experience centres'

 

Commenting on the company’s outlook, Dale Lee, its co-founder and managing director, said: “As we celebrate our 20th anniversary this year, we are looking to move ahead with strategic plans that target both growth and branding. 

“In spite of the current sluggish economy in Thailand, CoffeeWORKS’ coffee roasting revenues continue to grow over 30 per cent year on year, as they have for the past few years. 

“CoffeeWORKS’ revenue last year was Bt115 |million. This result is based on our position as |the chosen coffee roaster to supply many high |profile international F&B/hospitality brands |entering Thailand such as Dean & DeLuca, |W Hotel Bangkok, McCafe and Bluecup Coffee by S&P, while the core business comes from fresh roasted coffee, which generates 85 per cent of the revenue. Fifteen per cent of the revenue comes from supplying imported commercial coffee machines.” 

Lee said like all the company’s competitors, it did not sell syrups, sauces or powders. 

He said the company was razor focused on roasting exceptional coffees and helping its clients achieve in-the-cup quality delivered through world-class commercial coffee machines.

CoffeeWORKS had a 10 per cent share of the coffee-supply market in the hospitality industry, he said.

“A 10 per cent share is interesting, but based on our current growth rate and the kinds of customers we are meeting and working with, we are very confident we can continue to grow the business and increase our ranking,” he said. 

 

Complimentary move 

Lee said in the first quarter of 2015 the company invested Bt10 million to establish the CoffeeWORKS Experience Centre Bangkok. 

The facility occupies 150 square metres on Sukhumvit Soi 26.

Lee said the centre complimented CoffeeWORKS’ new Samut Prakan coffee roasting facility, which it opened at the end of 2012. 

He said the centre created more awareness of the CoffeeWORKS brand and served as an integrated coffee education centre providing clients with access to the company’s coffee experts for training courses, while products were displayed and there was an after-sales service for business-to-business customers and the general public.

“CoffeeWORKS has had technical-service offices in Koh Samui, Phuket and Chiang Mai for a number of years, but we see opportunities based on increasing our market share and on increased coffee-consumption in Thailand,” he said.

“When CoffeeWORKS started in 1995, Thailand’s per capita consumption was 500 grams. Today per capita consumption has doubled to 800 grams, or about 55,000 tonnes per year. 

“About 80 per cent of this consumption however is still based on instant coffees, which include three-in-one and canned coffee products. A 10 per cent shift to fresh coffee consumption would represent a new 5,500 tonnes of production volume per year for fresh coffee roasters.” 

From now until 2018, Lee said CoffeeWORKS would aggressively open additional CoffeeWORKS Experience Centres nationwide including in Hua Hin, Pattaya and Khon Kaen. 

“We want to provide existing and new B2B [business-to-business] customers in these markets the same level of locally-based training and coffee knowledge acquisition opportunities that CoffeeWORKS’ Bangkok customers currently benefit from,” he said.