Blue Bottle Coffee heading for Korea
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US brand Blue Bottle Coffee is expected to open in South Korea soon, followed by other Asian countries including China, Hong Kong and Taiwan.
“We’re developing our contact here,” CEO Bryan Meehan said while attending the World Coffee Leaders Forum at the Seoul Cafe Show.
He said Blue Bottle was researching the market and looking for a GM in Korea, with no specific set yet for a launch.
Meehan said the company headquarters would directly manage its stores in Korea, as it does in other countries.
“Actually, we had a lot of pressure for a joint venture in Japan. A lot of companies wanted licensed approaches,” he said. “We are very passionate about controlling the quality of Blue Bottle, so we like to do things ourselves. We have never franchised.”
While local coffee chains in Korea have been hit by losses over the past few years, Starbucks Coffee has alone seen rapid growth, reports The Korea Times.
“Blue Bottle has grown along with Starbucks in the US. We think we can survive side-by-side,” said Meehan.
Known for its innovation, Blue Bottle has 44 stores in the US and Japan. Nestle acquired the chain for US$425 million in September.
“Nestle CEO Mark Schneider has a wonderful vision of where specialty coffee should be in five years’ time, and he sees the value of Blue Bottle,” said Meehan. “Nestle is allowing Blue Bottle to remain a standalone company. I don’t report to anybody at Nestle.”
Founded in Oakland, California, by musician James Freeman in 2002, Blue Bottle has expanded around San Francisco. Because of Freeman’s interest in Japan, the chain has expanded there and will open its eighth outlet next year in Kyoto.
Questions & Answers
Q.What is Blue Bottle Coffee's strategy for expanding into the South Korean market?
What is Blue Bottle Coffee's strategy for expanding into the South Korean market?
The company intends to research the market and find a General Manager in Korea. Its headquarters will directly manage stores in the country, following the same approach it uses elsewhere, to maintain control over quality.
Q.Why has Blue Bottle Coffee chosen to directly manage its stores in new markets rather than using joint ventures or licensing?
Why has Blue Bottle Coffee chosen to directly manage its stores in new markets rather than using joint ventures or licensing?
Blue Bottle is very passionate about controlling the quality of its product and therefore prefers to do things itself. It has never franchised, despite pressure for licensed approaches in Japan.
Q.How has the recent acquisition by Nestle affected Blue Bottle Coffee's operational independence?
How has the recent acquisition by Nestle affected Blue Bottle Coffee's operational independence?
Nestle is allowing Blue Bottle Coffee to remain a standalone company. CEO Bryan Meehan stated that he does not report to anyone at Nestle, indicating continued operational autonomy.
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