Murray Darling, managing director of Starbucks Coffee (Thailand) offers his advice to expatriates running their businesses in Thailand on how to get past the language barrier to communicate effectively and to make sure their plans are rightly executed.Darling: "First of all, language is a small piece of understanding things. Visual, body language tells you more than language.
"Starbucks is all about human connections and human connections [are] way beyond words. I actually find it almost easier to understand our partners [Starbucks staff] here [than] were I to do in other countries where I do speak [their] languages. Because you can tell from the moment you come to the store and see staff smile or you can also tell when things are not right by the body language.
"In two months, I have been to two-thirds of our stores already. So, spending time with the people in the frontlines and just asking questions.
"As a farang, we like to move fast and come to decisions quickly. I would say: take more time and listen to everybody's advice.
"Don't just listen to people who speak good English. Don't be afraid to let the team talk in Thai and discuss in Thai.
"Use an interpreter when needed. And start to learn some Thai and culture even if that's hard."
Tuesday, September 15, 2009
Monday, September 14, 2009
Drink-up and feel good about it
Starbucks' Thai stores on Saturday officially began serving the chain's 100-per-cent responsibly grown, ethically traded espresso coffee.As part of Starbucks' "Shared Planet" scheme - the company's global commitment to doing business responsibly - the espresso is purchased from farmers and suppliers who follow the company's exacting sourcing standards and guidelines for social, economic and environmental responsibility developed in partnership with the environmental non-profit organisation Conservation International. Murray Darling, managing director of Starbucks Coffee Thailand, said that since its founding, Starbucks has worked to positively impact the lives of farmers and their communities. The responsibly grown espresso is an example of the chain's commitment to doing business the right way, he said.
"It is our assurance to customers that they are making a difference every time they enjoy their favourite espresso-based drink in their local Starbucks," he said.
Starbucks has set itself the goal of purchasing all of its coffee from sources that meet the "responsibly grown and ethically traded" standard by 2015. Last year, 77 per cent of its coffee met the standard. Thai farms are among those the firm is helping to comply with the new requirements, Darling said.
The "Shared Planet" campaign also includes targets on community involvement and environmental stewardship, such as using 100-per cent reusable or recycleable cups by 2015, and for all new company-owned stores to be certified "green" by 2010. This condition is particularly relevant here, as Starbucks Coffee Thailand is one of only about 10 wholly-owned Starbucks subsidiaries in the world.
In Thailand, Starbucks has since last year offered a 10-per-cent discount on all beverages to customers who bring in their own reusable mugs. Marketing and communications director Sumonpin Jotikabukkana said customers are currently bringing in about 32,000 reusable mugs per month, up 50 per cent from last year, reflecting a growing environmental awareness in the Kingdom.
Unlike in the US, where many Starbucks customers order their beverages to go, more Thai customers sit and drink in the stores, which helps the environment because they are served with reusable ceramic mugs.
Already, more than half of the mugs used in Starbucks stores here are reusable and recyclable, Sumonpin said.
"It is our assurance to customers that they are making a difference every time they enjoy their favourite espresso-based drink in their local Starbucks," he said.
Starbucks has set itself the goal of purchasing all of its coffee from sources that meet the "responsibly grown and ethically traded" standard by 2015. Last year, 77 per cent of its coffee met the standard. Thai farms are among those the firm is helping to comply with the new requirements, Darling said.
The "Shared Planet" campaign also includes targets on community involvement and environmental stewardship, such as using 100-per cent reusable or recycleable cups by 2015, and for all new company-owned stores to be certified "green" by 2010. This condition is particularly relevant here, as Starbucks Coffee Thailand is one of only about 10 wholly-owned Starbucks subsidiaries in the world.
In Thailand, Starbucks has since last year offered a 10-per-cent discount on all beverages to customers who bring in their own reusable mugs. Marketing and communications director Sumonpin Jotikabukkana said customers are currently bringing in about 32,000 reusable mugs per month, up 50 per cent from last year, reflecting a growing environmental awareness in the Kingdom.
Unlike in the US, where many Starbucks customers order their beverages to go, more Thai customers sit and drink in the stores, which helps the environment because they are served with reusable ceramic mugs.
Already, more than half of the mugs used in Starbucks stores here are reusable and recyclable, Sumonpin said.
Saturday, September 12, 2009
THE CHEF A LA MODE
Torsit Sarisdiwongse is the man behind the mouthwatering menu at trendy Greyhound Cafe (www.greyhoundcafe.co.th).The executive chef's main duties entail menu design,budgeting, training staff and ensuring the tasteful quality of eight establishments around town.
WHEN DID YOU GET INVOLVED WITH GREYHOUND CAFE? I've been the executive chef since the start - around 12 years now. The first branch is at The Emporium. WAS IT DIFFICULT TO COME UP WITH THE MENU? Most of the dishes were inspired by food that Greyhound Cafe's partners like. Food that they experienced on their travels or their friends' home cooking. We adapted these dishes or re-created them with our own recipes. WHAT WAS THE FIRST GREYHOUND CAFE DISH? Spaghetti with Thai anchovy. At the time I found it quite unusual and didn't think spaghetti and Thai anchovy could go well together. The dish came about when one of Greyhound Cafe's founders, Khun Bhanu Inkawat, went to Milan and tried Italian-style spaghetti with anchovies. He told me briefly about the ingredients, the taste and the presentation of the dish. So I recreated the menu with Thai anchovy and added some local ingredients like dried chilli, peppercorns and sweet basil. I experimented with about 10 recipes until we got Greyhound Cafe's own signature.
HOW LONG DID THE TASTING TAKE WHEN YOU DESIGNED THE MENU? Before we got each dish, we had to try about 10 recipes.When the restaurant first opened, we had around 60 dishes. So we'd tried hundreds of dishes [smiles]. It took about a month for the tasting at first. DOES MENU DESIGN ALSO INVOLVE MARKETING? The marketing department gives me a promotional plan such as the current "Italian Feast". For this promotion I came up with new dishes using Italian sausage. Because most Thais might not be familiar with Italian sausage, I needed to come up with dishes that sell, that suit Thai and foreign palates. DO YOU ALSO HAVE TO TRAIN EVERY SINGLE CHEF? Yes, because each one has a different background. New chefs need one month of training. I train the head chef of each branch as well as the assistants. So that's around 200 people. WHAT'S YOUR FAVOURITE DISH AT THE CAFE? I like pasta dishes. I like Spaghetti with bacon and Spaghetti with Thai anchovy, mainly. HOW DO YOU SPEND YOUR LEISURE TIME? Reading. I look for references or inspiration for new special dishes. YOU READ ABOUT FOOD IN YOUR FREE TIME? Sometimes, because we normally have a marketing plan for the year and I have to come up with special or seasonal dishes, so I need to study. DO YOU COOK AT HOME? Not really [smiles]. I normally buy from outside. But I cook sometimes when there's a weekend gathering with friends at home.GTo see an extended interview with Chef Torsit, visit gurubangkok.com
WHEN DID YOU GET INVOLVED WITH GREYHOUND CAFE? I've been the executive chef since the start - around 12 years now. The first branch is at The Emporium. WAS IT DIFFICULT TO COME UP WITH THE MENU? Most of the dishes were inspired by food that Greyhound Cafe's partners like. Food that they experienced on their travels or their friends' home cooking. We adapted these dishes or re-created them with our own recipes. WHAT WAS THE FIRST GREYHOUND CAFE DISH? Spaghetti with Thai anchovy. At the time I found it quite unusual and didn't think spaghetti and Thai anchovy could go well together. The dish came about when one of Greyhound Cafe's founders, Khun Bhanu Inkawat, went to Milan and tried Italian-style spaghetti with anchovies. He told me briefly about the ingredients, the taste and the presentation of the dish. So I recreated the menu with Thai anchovy and added some local ingredients like dried chilli, peppercorns and sweet basil. I experimented with about 10 recipes until we got Greyhound Cafe's own signature.
HOW LONG DID THE TASTING TAKE WHEN YOU DESIGNED THE MENU? Before we got each dish, we had to try about 10 recipes.When the restaurant first opened, we had around 60 dishes. So we'd tried hundreds of dishes [smiles]. It took about a month for the tasting at first. DOES MENU DESIGN ALSO INVOLVE MARKETING? The marketing department gives me a promotional plan such as the current "Italian Feast". For this promotion I came up with new dishes using Italian sausage. Because most Thais might not be familiar with Italian sausage, I needed to come up with dishes that sell, that suit Thai and foreign palates. DO YOU ALSO HAVE TO TRAIN EVERY SINGLE CHEF? Yes, because each one has a different background. New chefs need one month of training. I train the head chef of each branch as well as the assistants. So that's around 200 people. WHAT'S YOUR FAVOURITE DISH AT THE CAFE? I like pasta dishes. I like Spaghetti with bacon and Spaghetti with Thai anchovy, mainly. HOW DO YOU SPEND YOUR LEISURE TIME? Reading. I look for references or inspiration for new special dishes. YOU READ ABOUT FOOD IN YOUR FREE TIME? Sometimes, because we normally have a marketing plan for the year and I have to come up with special or seasonal dishes, so I need to study. DO YOU COOK AT HOME? Not really [smiles]. I normally buy from outside. But I cook sometimes when there's a weekend gathering with friends at home.GTo see an extended interview with Chef Torsit, visit gurubangkok.com
Monday, September 7, 2009
NESTLE TO PROFIT FROM CHINA MILK SCANDAL
Nestle, the world's largest food company, says sales growth in China may double to 20 per cent this year as it takes market share from rivals affected by last year's tainted - milk scandal.
"We have gained market share, all our businesses, our branding is stronger and we had greater market recognition," Patrice Bula, chairman and chief executive officer of Nestle (China), said in an interview in Shanghai. "In the milk crisis, we were not part of it, we're not directly affected by it because all our products are safe."
Milk tainted with melamine caused the deaths of at least six babies and sickened almost 300,000 other children in China last year. Government tests found the toxic chemical, used in making plastics, in the products of 22 companies including China Mengniu Dairy, the nation's biggest liquid-milk producer.
"The made - in - China label is really damaging and a lot of Chinese consumers don't like it," Shaun Rein, managing director of China Market Research Group in Shanghai, said yesterday. "Nestle has the ability to increase market share, partly because everybody's fleeing the domestic producers."
Mengniu posted a 949-million yuan (Bt4.87 billion) net loss last year as a result of the scandal. Company profit rose 29 per cent to 936 million yuan the previous year.
Government support has helped the Chinese dairy industry increase consumption and industry sales are now equal to about 90 per cent of the level before the scandal, Bula said.
Switzerland-based Nestle operates 21 factories in China and sells products including Nescafe instant coffee and Kit Kat chocolate wafer bars. Sales in China, Hong Kong and Taiwan rose 10 per cent last year to 2.23 billion Swiss francs (Bt72 billion), 2 per cent of global revenue, according to the company's website.
The food and beverage maker aims to introduces" to accelerate sales growth in the fourth quarter, Bula said. Nestle's coffee, bouillon, milk and ice cream are among its best-selling products in China, Bula added.
"The industry is at a stage of restructuring, where we are beginning to see which are the good companies that produce good quality products," said Rong Yaozhong, general manager of Shanghai Totle Food, Nestle's venture partner for Chicken bouillon.
"A lot of companies will imp rive the quality of their products while those that fail to meet set standards will be shut."
"We have gained market share, all our businesses, our branding is stronger and we had greater market recognition," Patrice Bula, chairman and chief executive officer of Nestle (China), said in an interview in Shanghai. "In the milk crisis, we were not part of it, we're not directly affected by it because all our products are safe."
Milk tainted with melamine caused the deaths of at least six babies and sickened almost 300,000 other children in China last year. Government tests found the toxic chemical, used in making plastics, in the products of 22 companies including China Mengniu Dairy, the nation's biggest liquid-milk producer.
"The made - in - China label is really damaging and a lot of Chinese consumers don't like it," Shaun Rein, managing director of China Market Research Group in Shanghai, said yesterday. "Nestle has the ability to increase market share, partly because everybody's fleeing the domestic producers."
Mengniu posted a 949-million yuan (Bt4.87 billion) net loss last year as a result of the scandal. Company profit rose 29 per cent to 936 million yuan the previous year.
Government support has helped the Chinese dairy industry increase consumption and industry sales are now equal to about 90 per cent of the level before the scandal, Bula said.
Switzerland-based Nestle operates 21 factories in China and sells products including Nescafe instant coffee and Kit Kat chocolate wafer bars. Sales in China, Hong Kong and Taiwan rose 10 per cent last year to 2.23 billion Swiss francs (Bt72 billion), 2 per cent of global revenue, according to the company's website.
The food and beverage maker aims to introduces" to accelerate sales growth in the fourth quarter, Bula said. Nestle's coffee, bouillon, milk and ice cream are among its best-selling products in China, Bula added.
"The industry is at a stage of restructuring, where we are beginning to see which are the good companies that produce good quality products," said Rong Yaozhong, general manager of Shanghai Totle Food, Nestle's venture partner for Chicken bouillon.
"A lot of companies will imp rive the quality of their products while those that fail to meet set standards will be shut."
Sunday, September 6, 2009
COCA-COLA CEO POPS INTO THAILAND TO DISCUSS GROWTH STRATEGY
Coca-Cola USA chairman and CEO Muhtar Kent yesterday met with local bottling partners to map growth strategy.
He expressed optimism about the Thai market, saying the company's business in the Kingdom had the potential to double in size.
Kent was on a two-day visit to Thailand, during which he met with the leadership of the company's local bottling partners - Thai Namthip and Haad Thip - to discuss growth strategies for the local beverage market.
The visit was timed to coincide with celebrations for the 50th anniversary of the establishment of Coca-Cola bottling partner Thai Namthip.
Kent, who lived in Thailand as a child, said: "The purpose of my visit is to affirm to the team in Thailand our commitment to Thailand, our confidence in the future of the Thai economy and our belief in the considerable potential of the Thai market. We have enjoyed a strong partnership over many years with our local Thai bottlers and know that the key to further success in this market lies in understanding and best serving the rapidly evolving needs of Thai consumers, customers and the communities in which we operate."
The Coca-Cola system in the Kingdom consists of Coca-Cola (Thailand), Thai Namthip and Haad Thip. Haad Thip serves the 14 southern provinces, while Thai Namthip serves the rest of Thailand.
During his visit, Kent paid a courtesy call on Prime Minister Abhisit Vejjajiva at Government House and met with the leadership of one of the Coca-Cola Foundation Thailand's main corporate-social-responsibility partners.
He also visited stores and markets in the greater Bangkok area and held discussions with a group of the Coca-Cola system's Thai female business leaders. The latter activity was part of Coca-Cola's global initiative, led by Kent, to accelerate the recruitment, development and advancement of female talent in Coca-Cola offices around the world.
Coca-Cola USA recently announced it had achieved growth in volume and value share worldwide in non-alcoholic ready-to-drink beverages for the eighth consecutive quarter. The Pacific region, including Thailand, showed particularly strong growth.
He expressed optimism about the Thai market, saying the company's business in the Kingdom had the potential to double in size.
Kent was on a two-day visit to Thailand, during which he met with the leadership of the company's local bottling partners - Thai Namthip and Haad Thip - to discuss growth strategies for the local beverage market.
The visit was timed to coincide with celebrations for the 50th anniversary of the establishment of Coca-Cola bottling partner Thai Namthip.
Kent, who lived in Thailand as a child, said: "The purpose of my visit is to affirm to the team in Thailand our commitment to Thailand, our confidence in the future of the Thai economy and our belief in the considerable potential of the Thai market. We have enjoyed a strong partnership over many years with our local Thai bottlers and know that the key to further success in this market lies in understanding and best serving the rapidly evolving needs of Thai consumers, customers and the communities in which we operate."
The Coca-Cola system in the Kingdom consists of Coca-Cola (Thailand), Thai Namthip and Haad Thip. Haad Thip serves the 14 southern provinces, while Thai Namthip serves the rest of Thailand.
During his visit, Kent paid a courtesy call on Prime Minister Abhisit Vejjajiva at Government House and met with the leadership of one of the Coca-Cola Foundation Thailand's main corporate-social-responsibility partners.
He also visited stores and markets in the greater Bangkok area and held discussions with a group of the Coca-Cola system's Thai female business leaders. The latter activity was part of Coca-Cola's global initiative, led by Kent, to accelerate the recruitment, development and advancement of female talent in Coca-Cola offices around the world.
Coca-Cola USA recently announced it had achieved growth in volume and value share worldwide in non-alcoholic ready-to-drink beverages for the eighth consecutive quarter. The Pacific region, including Thailand, showed particularly strong growth.
Thursday, September 3, 2009
Coke to ramp up investment if taxes ease
The US soft-drink giant Coca-Cola Co has pledged to increase its local investments if taxes on the sector are eased.
Coca-Cola is set to ramp up annual investment from about one billion baht should the government revise its tax and price control structures, said Kiat Sittheeamorn, head of the Thailand Trade Representative office, quoting Coca-Cola chairman and CEO Muhtar Kent.
Mr Kent met Prime Minister Abhisit Vejjajiva yesterday.
The carbonated soft drink industry in Thailand is currently subject to a relatively tough regulatory system, as it encounters both excise tax and the Commerce Ministry's price watch list.
Soft drinks are categorised as a luxury product by the Finance Ministry, which subjects them to excise tax as high as 21%. The Commerce Ministry must also be informed before any price increase.
Mr Kiat said the American company saw existing measures as an unfair practice and a key obstacle for its investment expansion in Thailand.
Price controls on soft drinks are only enforced in some Asean countries including Cambodia, Vietnam, Laos and Thailand, said Mr Kent.
The premier yesterday promised to consider Coca-Cola's request and directed the TTR to study how to address the complaint.
Coca-Cola is set to ramp up annual investment from about one billion baht should the government revise its tax and price control structures, said Kiat Sittheeamorn, head of the Thailand Trade Representative office, quoting Coca-Cola chairman and CEO Muhtar Kent.
Mr Kent met Prime Minister Abhisit Vejjajiva yesterday.
The carbonated soft drink industry in Thailand is currently subject to a relatively tough regulatory system, as it encounters both excise tax and the Commerce Ministry's price watch list.
Soft drinks are categorised as a luxury product by the Finance Ministry, which subjects them to excise tax as high as 21%. The Commerce Ministry must also be informed before any price increase.
Mr Kiat said the American company saw existing measures as an unfair practice and a key obstacle for its investment expansion in Thailand.
Price controls on soft drinks are only enforced in some Asean countries including Cambodia, Vietnam, Laos and Thailand, said Mr Kent.
The premier yesterday promised to consider Coca-Cola's request and directed the TTR to study how to address the complaint.
Coca-Cola adds fizz to coconut water
The soft-drink giant Coca-Cola Co has taken a minority stake in a coconut water company, continuing its move into juices and teas as consumers spurn soft drinks for health and cost reasons.
The Atlanta-based maker of Coke and Sprite and Zico Beverages LLC announced the investment on Tuesday.Coca-Cola declined to say howmuch its investment was worth, other than to say it was a stake of less than 20% in the company.
Hermosa Beach, California-based Zico said in a statement that it has received a $15 million investment from partners including Coca-Cola, beverage entrepreneurs, distributors, celebrities and others. So Coca-Cola's stake was worth less than that.
The move means another major drink maker is eyeing coconut water as it looks to boost sales.
Last month PepsiCo Inc announced it was buying Brazil's biggest coconut water company, Amacoco Nordeste Ltda and Amacoco Sudeste Ltda. Terms of the deal were not disclosed.
Sales of soft drinks have been falling in recent years as consumers seek out healthier juices and teas and limit their purchases to save money.
Coconut water -the fat-free,potassium-rich liquid inside young, green coconuts - is popular in other countries and just starting to catch on in the US According to a report from Merrill Lynch,sales in Brazil are worth more than $300 million a year, while sales in the US are about one-tenth of that.
Coconut water is not to be confused with coconut milk, the liquid that comes from pressed coconut meat.
"The product has long-term potential in the US because it has several attributes many consumers are looking for now in beverages," said John Sicher, editor of the trade publication Beverage Digest ."The drink is relatively low in calories,natural, new and functional - meaning it provides a purpose to consumers," he said.
In this case, some consumers consider it a natural sports drink. Given the potential for the product, Sicher said it "makes sense for the big soft drink makers to invest in the category.
"The beverage companies need to innovate and have new kinds of products and the products need to appeal to what consumers want today," he said."I think that coconut water, it's too early to tell,but it does have some potential."
In April, Coca-Cola said it would buy a stake of less than 20% in British fruit and smoothie drinks maker Innocent Drinks worth ฃ30 million, or about $44 million at the time the deal was announced.
This winter, the company saw a setback from the Chinese government's blocking of its proposed $2.5 billion purchase of Huiyuan Juice Group Ltd because of monopoly concerns.
Now the company wants to get into the coconut water business.
"It's an exciting new category and an exciting new brand in the category,"said Coca-Cola spokesman Scott Williamson.
Zico, a privately held company, was founded in 2004. The company did not immediately return a request for sales figures.
The line of Zico Pure Premium Coconut Water, including flavours like mango and passion fruit, is sold in gourmet grocers, natural food stores, yoga studios and other locations.
The Atlanta-based maker of Coke and Sprite and Zico Beverages LLC announced the investment on Tuesday.Coca-Cola declined to say howmuch its investment was worth, other than to say it was a stake of less than 20% in the company.
Hermosa Beach, California-based Zico said in a statement that it has received a $15 million investment from partners including Coca-Cola, beverage entrepreneurs, distributors, celebrities and others. So Coca-Cola's stake was worth less than that.
The move means another major drink maker is eyeing coconut water as it looks to boost sales.
Last month PepsiCo Inc announced it was buying Brazil's biggest coconut water company, Amacoco Nordeste Ltda and Amacoco Sudeste Ltda. Terms of the deal were not disclosed.
Sales of soft drinks have been falling in recent years as consumers seek out healthier juices and teas and limit their purchases to save money.
Coconut water -the fat-free,potassium-rich liquid inside young, green coconuts - is popular in other countries and just starting to catch on in the US According to a report from Merrill Lynch,sales in Brazil are worth more than $300 million a year, while sales in the US are about one-tenth of that.
Coconut water is not to be confused with coconut milk, the liquid that comes from pressed coconut meat.
"The product has long-term potential in the US because it has several attributes many consumers are looking for now in beverages," said John Sicher, editor of the trade publication Beverage Digest ."The drink is relatively low in calories,natural, new and functional - meaning it provides a purpose to consumers," he said.
In this case, some consumers consider it a natural sports drink. Given the potential for the product, Sicher said it "makes sense for the big soft drink makers to invest in the category.
"The beverage companies need to innovate and have new kinds of products and the products need to appeal to what consumers want today," he said."I think that coconut water, it's too early to tell,but it does have some potential."
In April, Coca-Cola said it would buy a stake of less than 20% in British fruit and smoothie drinks maker Innocent Drinks worth ฃ30 million, or about $44 million at the time the deal was announced.
This winter, the company saw a setback from the Chinese government's blocking of its proposed $2.5 billion purchase of Huiyuan Juice Group Ltd because of monopoly concerns.
Now the company wants to get into the coconut water business.
"It's an exciting new category and an exciting new brand in the category,"said Coca-Cola spokesman Scott Williamson.
Zico, a privately held company, was founded in 2004. The company did not immediately return a request for sales figures.
The line of Zico Pure Premium Coconut Water, including flavours like mango and passion fruit, is sold in gourmet grocers, natural food stores, yoga studios and other locations.
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