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Global coffee brand perfects local accent

Coffee Bean and Tea Leaf gears up for 2010

By Tina Arceo-Dumlao
Philippine Daily Inquirer
First Posted 22:10:00 11/12/2009

Filed Under: Entrepreneurship, Culture (general), Economy and Business and Finance

IT WAS 2 in the afternoon and time for the time-pressed, globe-trotting 40-year-old Melvin Elias to take a break.

So the president and chief executive officer of International Coffee and Tea, Llc, which oversees the 800 The Coffee Bean and Tea Leaf stores around the world, ordered some brewed coffee and tuna pan de sal at The Coffee Bean and Tea Leaf branch in Greenbelt 3, the 46-year-old international chain?s first branch in the Philippines.

?I have been having about two of these every day since I?ve been here,? says the Law graduate of the London School of Economics and Political Science, as he relished his hot pan de sal.

Elias says it is these special, distinctly Filipino touches?the flavorful tuna, sardines with feta cheese pan de sal and the extensive dessert range including the unrivalled sans rival?that do wonders in bringing an international brand such as The Coffee Bean and Tea Leaf closer to the hearts and minds of the local market.

He says The Coffee Bean and Tea Leaf realizes that the world is full of different cultures, with varying taste profiles and preferences, thus it would not be wise to approach each market the same way.

?We are also differentiating our brand from the others by doing what our competition can?t or won?t do,? says Elias, and that includes preparing food in the local commissaries so that customers will get their breads, pastries, salads and pasta dishes fresh every day.

?And our chai latte is made from hand blended, real fresh tea, not extracts,? says Elias, adding that the Philippines is the top consumer of chai latte in the region.

?If you are looking for taste and quality, then we?re the place for you,? he says.

Coming up with fresh food and drinks does mean more expense and effort, but Elias says The Coffee Bean and Tea Leaf has been able to hold its own this year despite the ?very challenging? economic environment precisely because it has not given in to temptation to cut corners just to conserve resources.

?We did cut costs, but we cut the fat, not the muscle,? says Elias. ?We broke the rules this year. While others stopped training and marketing, we did the opposite.?

The franchisees discussed these moves during the annual The Coffee Bean and Tea Leaf franchise conference, which was held this year from Nov. 3-6 in Cebu.

The conference gathered The Coffee Bean and Tea Leaf franchisees from around the world and they all came out of it enthusiastic about their brand?s prospects.

Store network

The Coffee Bean and Tea Leaf has expanded its store network this year by 100 stores worldwide while others have suspended growth plans. It is preparing to put up even more in new markets such as Hong Kong and Turkey.

Sales have also hit $350 million as of end-September, up from the same period the previous year on the back of higher same-store sales and new branches.

A similar close to double-digit growth is expected in the Philippines, according to Walden Chu, managing director of the Philippine franchise of The Coffee Bean and Tea Leaf.

?The first half of the year was challenging because of the difficult market conditions, and then the typhoons halted the momentum that was building up in the second half,? says Chu. ?But we are still opening more stores and the ones we?ve opened last year have been coming into their own.?

The Coffee Bean and Tea Leaf will have 34 stores in the Philippines before the end of the year and at least six more will be put up in 2010 in anticipation of faster economic growth in the country.

?We have a lot of programs up our sleeves. We are doing some real innovations in terms of product platforms and categories,? says Chu. ?We?re really excited about next year.?

Brand promise

So is Elias, who is busy rallying the network around the world behind the company?s promise to deliver to its customers ?premium, handcrafted and flavorful? products.

?We?re really well positioned with more drink and product platforms and more stores,? says Elias. ?Just watch out for this brand next year.?



Copyright 2011 Philippine Daily Inquirer. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


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