Coffee Club shifts focus to deliveries during lockdown
published : 24 Apr 2020 at 04:00
newspaper section: Business
Coffee Club Thailand is adapting to the lockdown by shifting to delivery sales with more transportable beverages like coffee and tea in a bag, in partnership with The Pizza Company.
The cafe is offering cold brew coffee and an assortment of teas in a bag through its parent company Minor Group's delivery service, 1112 Delivery, throughout the Bangkok metropolitan area starting this week.
According to Nayada Vanvichai, marketing director of Coffee Club Thailand, during the past year, specialist coffee and tea shops posted the highest value growth with a 7% sales rise, reaching 23.7 billion baht.
Chain outlets contributed 21.6 billion baht or 90.9% of total market value, while independent outlets contributed 2.15 billion baht or 9.1%.
The compound annual growth rate for specialist coffee and tea shops is expected to be 9.5%, reaching 32.3 billion baht by 2023.
During normal times, The Coffee Club Thailand's coffee and tea beverage sales (from dine-in, takeaway and delivery channels) represent 40% of total sales, while during the Covid-19 lockdown, takeaways make up 80% and deliveries 20%.
The company sees potential market growth and customer expansion for delivery services.
The new packaging for cold brew coffee and tea is a food-grade nylon bag that can be stored in the refrigerator for up to 14 days or in the freezer up to three months without losing its taste.
Thailand is The Coffee Club's first market to use this bag, soon to be rolled out in other countries.
In 2019, The Coffee Club Thailand tallied 1 billion baht in sales, a 21% increase year-on-year, with beverage sales accounting for 43% of total sales at 432 million baht.