COFFEE
E XA M P L E A RT I C L ES
BLUEKOFF
I
PROFILE
S
P
E
C
I
A
L
I
T
Y
stirs Thai society
Once a nation of tea drinkers, Thailand’s citizens are transitioning their choices to coffee. Their thirst for speciality quality coffee is proving a big hit with Bluekoff, considered the country’s leading specialty coffee producer, thanks to its innovative and sustainable approach. CEO NutRada ‘Noon’ Kunavivattananon spoke to Andy Probert of how the brand is perking up a young, but dynamic sector.
C
offee culture in Thailand is just three decades young. Still, it has had a deep and profound impact on drinkers: not only from the contents of their cup but the mushrooming at street level of the coffee shop sector and the popularity of speciality locally-derived coffee beans. Bluekoff is the leading Thai brand in the rapidly growing speciality coffee market, supplying at least 6,000 independent coffee shops and national coffee chains of its delightfully-flavoured Arabica-derived coffee. The company, headquartered in Bangkok, has grown in parallel with the market, which annually is worth an estimated $1.1 billion, with predictions the premium coffee market could well double in five years.
Opium to coffee The Bluekoff journey of the last 20 years is one borne out of sheer-dogged persistence and no-little risk by its creator, mixed with an ounce of tenacity and a spoonful of love to bring his speciality coffee to a broader audience. From deep within the notorious Golden Triangle, a region that extends across a large
2
Inside Food & Drink
mountainous border that straddles northern Thailand, Laos, and Myanmar at the confluence of the Ruak and Mekong rivers, there has been a seismic shift from opium-growing to coffee production. It is one of the countless legacies left by the great King Rama IX, whose reign in Thailand lasted from 1946 until his death in 2016. “Over 50 years ago, King Rama IX initiated the project for hill tribe people to grow economical plants, distributing coffee seedlings for the hill tribe people to grow. That’s when coffee replaced opium in the north,” explained Bluekoff’s CEO NutRada ‘Noon’ Kunavivattananon. “Bluekoff’s founder Supachai Srivittaporn had been trying to source quality Arabica coffee in Thailand for many years, across many provinces, many mountains and many villages. He eventually found a special place where the coffee plants are productive with very good quality.” The first steps were fraught with difficulty as these small coffee producers were wary of involvement from ‘outsiders’. “We had to persuade the growers to understand that we are not an investor, and
we wanted to be a part of their community,” explained Noon. Add to that, there was deception: coffee beans were being trucked in from other provinces to be sold as beans from Ban Doi Chang, in Chiang Rai province, at premium prices. In a case of ‘build it, and they will come’, Mr Srivittaporn out of frustration poured his own finances into building a factory in Ban Doi Chang in 2007 where he could directly control the quality of the coffee cherry. “We have grown rice in Thailand for hundreds of year, but coffee for less than 60 years,” said Noon. “King Rama IX gave the Arabica coffee trees to replace the opium being grown by the hill tribes to help their families make a living, and the industry has grown rapidly since. “From 2007, we built up the plantations by engaging with heads of the households to produce coffee. North Thailand is the only place where Arabica coffee can be grown where the altitude is high enough.” The project has since attracted farmers from many hill tribes to produce coffee, which is sent to the factory where the best is selected for quality and manufacture.
“The first step was securing a robust supply chain which we had full sight and control of. The result, with the use of highquality roasting machines, world class equipment – including our machines at our coffee plantation in Chaing Rai – is a speciality coffee that is fresh and memorable. The taste and aroma stir emotions and evokes the mysteriousness of Northern Thailand,” added Noon. The uniqueness of the brand is that the raw material can be picked, processed and put in a cup within days. “We process until it is in parchment form and take that dry parchment to a factory in a nearby province to Bangkok for processing, roasting and packaging.” Bluekoff’s coffee plantation, a wet milling operation in Mae Suai District, Chiang Rai, has a capacity of 2,400 tonnes per year. It buys around 3 million kilograms of coffee cherries annually and produces about 1,500 tonnes of coffee in parchment per year. Its dry milling and roasting facility in Phra Phutthabat, Saraburi Province, near Bangkok, has a capacity of 7,000 tonnes
a year, while it processes 1,500 tonnes of green beans annually. The company, which employs 120 people across all its facilities, also exports its coffee to clients in Laos and Cambodia, while a small amount of green beans – less than 1% of the company’s total – are shipped to Japan and South Korea. “The only intention of exporting green beans is to let the world know that Thailand can produce specialty coffee,” Noon was keen to clarify.
Award-winning coffee integrator Bluekoff is only just raising awareness of its brands and speciality coffee options to the Thai public by turning to the retail sector for the first time. The secret to its domestic success to date has been acting as a back-ofhouse supplier to coffee shops.
The CEO explained: “We support the Thai coffee shop, not only through our coffee bean brands but in selling coffee equipment including high-end coffee machines, grinders, roasters and blenders. We sell at least 400 machines a year.” This extends to promoting branded equipment from the likes of Modbar, La Marzocco, Fiorenzato, CIME, Blendtec, Froco, Kees van der Westen and others, ensuring coffee shops are well-equipped to supply the best coffee experiences to their clientele. Noon added: “We are not only the biggest producer of speciality coffee in Thailand but also the country’s leading totally-integrated coffee value chain company upstream and downstream. This is from crop to cup; the whole value-chain is one-of-a-kind. “Bluekoff has had a solid business to business approach and always seeks to offer the best industry-setting standards for our clients.”
Inside Food & Drink
3
CHAIIWALA
I
PROFILE
-month us 36 ed mbitio ian-inspir a n a d In e has nchis wala rowth. The a ii r a F h ’s C g y mp a n r riet gy for strate d drink co lked to Ha an aik ta any’s roots N food il tor N comp n plans. Direc t the abou pansio Jones diverse ex s it d an
K city the U a re of fer s ed to n d d ri n k s it a decid mily la’s fo o d e U K a n d ld. fa er cest a ii w a ro u n d th d the wor ei h L C a , a n , a arou ll a s 2015 a st . To d ay o u tl et s e d w in re s k ac vou eE t 33 es a o f th ng sa ce d a co ff e a si p al a e ri e n rink of bei te a s a n d p iw ai ex h g eb ed b e in id : “C the on th f sp ic to r, sa replicate lafer is a ra n g e o o d . u D ir ec to ue of et fo uniq a la se ll s ch is e e family Asian pop re n st ra f w F o e sam what the ii w a la C h a ii n g m e n u mp any ’s a th h of C is d ti co ber s Chai rs b e h in lg ic ta ste te mp ai k , th e . em ai m e ta eu h ch le N il N p by thre s wit n tr e p re n n it y a n os to peop t-u shop ee m m u the drink was se s of coffee n a n d th an co ce es up o ’s A si s, trodu succ nder g rew L ei ce ster d also in u ll fo a s ive ti o n e an sines e.” d to g d hom d it befor ok the bu ri se . wan te y life an lience il or e to y su rp m fo of fam n’t exper e first st el ig h t, b In st a g ra to th e had li m n e ss iv si ss u who success of u t o f th e imp re a ch th e b n d ci ti e s o n a ay The st sa rew p ro li ke to u ick ly g tow n to a p who q e g a n p e n e d in b la a le w o p e ss , C h a ii a n d p e o co u ld b e u si n g s is e b rs low in a n ch is e ne fr a n ch fr b e a a t th e ow th e to t a sk if th e U K . n e mea la r th a n d ta k nd s a ro u a s n eve r s so p o p u ch is e to n ew “I t w ra n d w a t fr a n we o ff e r abou eb ce b u t th d to le a rn ex p e ri e n . e d d d e ci d ta st e a n ex p la in e ue u n iq ” M r Na ik s, p la ce
B
2
Inside Food & Drink
Inside Food & Drink
3
NUOVA RICAMBI
I
PROFILE
Managing Director Marcello Zanesi
W Nuova Ricambi, an official supplier of spare parts for professional coffee machines and bar accessories, satisfies the needs of customers in over 150 countries. What has made the company a household name in the coffee machine sector? “Excellent customer care has been the cornerstone of our business development,” answered Managing Director Marcello Zanesi. Romana Moares reports. 2
Inside Food & Drink
ith roots going back to 1980, Nuova Ricambi has been serving coffee machine manufacturers, repair technicians and roasters for four decades, making quality its mission. The company is a recognised ‘one stop shop’, selling spare parts for professional coffee machines, coffee grinders, dishwashers, refrigeration, professional kitchens, cleaning products and accessories for baristas, and can also produce tailor-made gaskets for professional refrigeration. Founded by Marcellino Zanesi, the company continues to be a family business, now run by the second generation of the Zanesi family, which has worked hard to grow the business. “In the last few years, we have achieved a 360-degree expansion,” acknowledged Managing Director Marcello Zanesi. “Today, we are present all over the world, both directly and through sister companies and authorised distributors.” Just recently, the company’s market position has been further boosted by acquiring
Nuova SM Commerciale, a specialist in spare parts for professional kitchens, creating a winning synergy of top-level expertise and wide-ranging industry experience – a remarkable achievement ahead of Nuova Ricambi’s 40th anniversary. “We are a solid company that knows how to adapt to changes,” said Mr Zanesi. “We have been working with passion and responsibility since 1980 when first my father Marcellino Zanesi, and then myself have managed to make Nuova Ricambi not only a leading company in its sector, but a real family for our employees as well as our partners. “Our suppliers are just as important as our customers, and we always try to build trusting and lasting relationships.”
Smooth operation Nuova Ricambi today is not only a sparepart specialist but also a producer of its own products that combine innovation and utility. A good example is Sipresso, a bar accessory called Sipresso, created in col-
laboration with Italian manufacturer Leonardo Tecnika. “Sipresso is an automatic precision coffee tamper, a showcase of high technology, all ‘Made in Italy’,” proudly stated Mr Zanesi. “The product has been specifically designed for baristas who can always tamp the coffee with the same pressure and the correct angle over time, working quickly and cleanly.” The barista has also been the focal point of one of the company’s recent brands, EDO, born in 2015 from an idea to supply a selection of innovative, high-quality tools and products to meet all coffee lovers’ needs. EDO aims to be the meeting place where international baristas can exchange ideas on the latest trends and products of the world of coffee, to learn, meet and buy innovative products. Top quality, innovations and excellent customer service with the technical office available round the clock have been some of the factors that have always differentiated Nuova Ricambi from its competitors. Inside Food & Drink
3
JACOBS DOUWE EGBERTS
I
PROFILE
NCC capsule (Nespresso Competitive Capsules). The L’Or capsules are now available across multiple markets. The capsules outperform competitive products in taste sessions and are sold via local retailers. They can also be enjoyed by customers in the professional market, as they fit standard capsule machines.
Rooted in history
J
ge Egberts, the famous bevera lf centuries, Jacobs Douwe For more than two-and-a-ha n for coffee and tea, has been driven by its passio s, brand 400 over g company coverin these values are even more and care for people. Today, respect for the environment Operations Manager, highed Andries Leusink, Global important than before, affirm y. sing focus on sustainabilit achievements and an increa lighting the company’s recent
2
Inside Food & Drink
acobs Douwe Egberts (JDE), a privately owned Dutch company, is the largest pure play coffee company in the world with over 16,000 associates and an annual turnover of €6.6 billion in 2019. Its products are sold in more than 143 countries around the world. JDE is a house of many leading heritage coffee, tea and hot chocolate brands loved by consumers all over the world; Jacobs, Douwe Egberts, Friele, Gevalia, Kenco, Pilao, Moccona, Super Group, L’Or, Tassimo, Senseo and Pickwick, to name just a few. All boast high brand awareness and enjoy leading positions in the retail or professional markets. Jacobs, successfully introduced in Eastern Europe over the last few decades, is the company’s leading global retail brand with revenues of over €1.3 billion. The company has an impressive track record of successful innovations reflecting an in-depth understanding of market needs and customer preferences. In 2001, this forwardthinking approach was applied in its collaboration with Philips to produce the Senseo coffee maker. Douwe Egberts launched the Senseo single-serve pads, a revolutionary concept at that time, changing the coffee habits of many households. Brewing a fresh cup of coffee had become easy, with consumers being able to select the coffee blend of their preference, with no leftover coffee waste. 15 years later, the company introduced another single serve concept with the
JDE’s unique market position and global popularity is firmly rooted in the hard work and dedication of past generations. “The company’s history goes a long way back. The story began in 1753 in Joure, a small village in the northern part of the Netherlands, where Egbert Douwes established a general grocery shop. This later developed into a company dealing in coffee, tea, and tobacco,” explained Andries Leusink, Global Operations Manager. By 1925 the business had changed its name to Douwe Egberts, and introduced the red seal as its logo. Throughout the last century, the company changed owners several times, only to emerge as an even stronger and more successful operator with its reputation growing worldwide. In 1978, the de Jong family sold the company to Sara Lee Corporation, an American consumer-goods company with operations in more than 40 countries and some 137,000 employees worldwide. In 2012, Sara Lee Corporation split into two companies – one for North American operations which was renamed Hillshire
Inside Food & Drink
3
CO F F E E E X A M P L E S