One of the biggest coffee chains native to Vietnam is set for some Middle-Eastern expansion.
It has been announced that Trung Nguyen, a popular Southeast Asian entity, will be opening up in the United Arab Emirates, becoming the latest in a long line of businesses hoping to cash in on ever-growing Emirati retail market.
Under a coordinated franchise agreement, the Dubai-based Global Hotels Management (GHM) group will invest some $2.7m and open up two Trung Nguyen shops in Dubai within the next twelve months.
It is also understood that there are plans to further expand the brand in other overseas markets such as Saudi Arabia, Kuwait and Bahrain.
The market research analytics firm Euromonitor International believe that initially breaking into the United Arab Emirates represents a smart move. Then with an established base in the region and strong relations, brand awareness naturally increases in neighbouring countries and creates a number of potential entry points.
Speaking at a Dubai-hosted Coffee and Tea Festival, Nguyen Nguyen, the general manager of the Vietnamese chain said: “Dubai and the Middle East [are] familiar with the Western coffee [culture].”
“But,” he continued: “If we can develop a new style from Asia, if we can make people aware of that, the market can be developed… Vietnamese coffee is strong and suitable for the tastes here.”
Given that Vietnam is one of the world’s largest exporters of coffee, would be customers could be forgiven for believing that Trung Nguyen will be serving up coffee grown in Vietnam – but they’d be wrong. A mix of the best beans from Brazil, Kenya and Colombia are used to create a range of speciality beverages and signature blends.
There will also be a presence on store shelves in the near future as a range of instant products that, according to GHM’s Masood Hashim “will be 25% cheaper than the leader brands, will be made available to retailers as Trung Nguyen look to capture both domestic and high-street consumers.