Berli Jucker Group (BJC), owned by Thai billionaire Charoen Sirivadhanabhakdi, looks set to allocate 2 billion baht to open 1,000 branches of Wawee coffee chain over the next five years after acquired it in the middle of this year.
The value of the deal was not disclosed, and it was done through BJC Mega Market (BJMM), which was established in 2016. BJC wants to extend product portfolio to be stronger and more diverse.
Suwannee Poonapanont, executive vice-president for coffee business at Berli Jucker Plc, said the group is interested in the coffee chain because it is very lucrative and responds to Thai consumer lifestyle.
"The Wawee brand is well-recognised among Thai customers. There is still huge room to grow the Wawee coffee chain in the Thai market," said Mrs Suwannee.
Founded in 2000 by a coffee lover in Chiang Mai, Wawee Coffee Co operates 22 Wawee branches across the country.
After the acquisition, the group changed both the logo and slogan for premium positioning.
The product taste has been adapted for Thai coffee lovers. Wawee coffee starts at 35 baht per serving, about 30% lower than market-dominant Starbucks.
Mrs Suwannee said BJMM plans to spend about 2 billion baht to expand Wawee coffee shops to reach 1,000 branches over the next five years.
The company wants to have 100 branches by the end of next year.
There are three Wawee coffee shop formats -- flagship stores covering 100 square metres, kiosks with 20 sq m and mid-size branches spanning 40-80 sq m.
"We look at expanding the kiosk coffee model via franchise system, particularly in Bangkok," said Mrs Suwannee
Apart from Thailand, the company also plans to expand Wawee coffee chain overseas, focusing mainly on Cambodia, Laos, Myanmar and Vietnam. The company will expand Wawee coffee shop first in Laos and Cambodia next year.
There are 43 M Point stores in Laos. BJMM expects Wawee's sales to reach 100-200 million baht next year.
In a related development, Aswin Techacharoenvikul, chief executive and president of BJC, the owner of Big C hypermarkets, said the company will allocate at least 10 billion baht to continuously expand retail outlets next year.
There are about 1,500 retail shops under BJC Group. Of the total, about 1,000 stores are in Thailand and the remaining 500 stores are abroad.
The company plans to open seven MM Mega Market wholesale stores in Vietnam next year, bringing the total to 26 branches next year.
The company plans to rename BJC's M point convenience stores in Laos to "Mini Big C" this month, and the first Mini Big C in Cambodia will be opened in July next year.
BJC shares closed yesterday on the Stock Exchange of Thailand at 53.50 baht, down 50 satang, in trade worth 136 million baht.