News Bites
Asia
IGD Asia: Online grocery to see rapid growth
IGD Asia, an international market research company, projected that the Asian online grocery market will be worth an estimated US$295 billion and will account for 7.6% of total grocery retail sales by 2023. China, Japan, and South Korea should emerge as Asia’s most established online grocery markets while Singapore and Taiwan should have well developed grocery channels by 2023.
Indonesia
Indonesia to allow chicken imports from Brazil
Indonesia will reopen its market to Brazilian chicken imports after losing the lawsuit filed by Brazil with the World Trade Organization (WTO). Local independent domestic broiler breeders and the Indonesian Poultry Farmers Association (Pinsar) both strongly opposed imports, stating it will deeply impact local businesses. Trade Minister Enggartiasto Lukita said they will explore other trade remedies such as halal certification that do not breach the WTO rules.
Laos
Alipay comes to Laos
Alipay, a third-party mobile and online payment platform, is set to enter the Laos market as Lao Development Bank (LDB) signed up with Kiwi Group to roll out services in the country. Alipay boasts of more than 1 billion users in China.
Malaysia
Insect protein enters the snack market
Ento is a new protein snack that is made from roasted crickets. It is sold online for US$4.83 per 25g portion and is targeted at the health-conscious customer looking for high fiber protein food. Ento is the brainchild of Malaysian entrepreneur Kevin Wu.
Philippines
Jollibee buys CBTL for US$350 million
Philippine restaurant operator Jollibee Foods shell out US$350 million for US cafe brand The Coffee Bean & Tea Leaf (CBTL). CBTL is Jollibee’s largest acquisition to date and the takeover will be financed initially through a bridge loan. The purchase will bring Jollibee closer to its aim of becoming one of the top five restaurant companies globally in terms of market capitalization.
SM Group to take over Harrison Plaza Complex next year
SM Group will take over Harrison Plaza Complex from the Martel family in 2020. Harrison Plaza is generally acknowledged as Philippines’ first modern shopping center. As the complex is located on prime land, there are plans to redevelop the seven-hectare property into a new mixed-used development that will include a shopping mall and residential area.
Singapore
Singapore to permit frozen poultry imports from Russia
The Singapore Food Agency approves frozen poultry imports from Russia after recognizing Russia’s avian influenza regionalization. Currently, only Bryanski Broiler and Miratorg Zapad are cleared by Singapore for imports.
Jumbo Group Q3 profit fell 24.8%
Jumbo Group Q3 profit fell 24.8% due to costs incurred from new restaurant openings. The three new outlets are: a Jumbo Seafood at Jewel Changi, Zui Yu Xuan Teochew Cuisine, and Chao Ting Teochew Pao Fan eateries at Far East Square. The company expects these three new outlets to help strengthen its market position in Singapore.
The Salted Plum opens second outlet in Suntec
The Salted Plum, a Southern Taiwanese restaurant, opened its second outlet in Suntec city. The eatery started as a pop-up before launching its first restaurant on Circular Road. The Salted Plum served affordable home-style Taiwanese dishes.
Thailand
Two Michelin Starred Gaggan to close
The two-Michelin-starred restaurant serving progessive Indian cuisine by celebrity chef Gaggan Anand in Bangkok will close its doors end of 24th August 2019. Gaggan was also named Asia’s 50 Best Restaurant from 2015 to 2018.
CP Foods Plc inks deal to trial automatic layer farming model
Charoen Pokphand Foods Plc. inked deal with Khon Kaen University’s Faculty of Agriculture to experiment with an automatic layer farming model. The layer farming model is expected to have a capacity of 20,000 layers, deliver higher productivity per layer, and achieve a cost reduction of 10%.
THAI signs MOU with Hilton
Thai Airways International (THAI) signed a memorandum of understanding (MoU) with Hilton hotels. The MoU allows both international and domestic travelers with THAI boarding passes on all routes to enjoy a discount for dining and spas at Hilton hotels in Thailand. The airline is currently looking for business partners to help boost numbers as well as provide value-add for their flyers.
Third Bangkok Airport mooted
Thailand’s Airport Department recently proposed developing a third airport in Thailand to help ease congestion from the two existing airports. The new airport will be built in Nakhon Pathom, which is west of Bangkok. The project is expected to cost B20 billion (US$649 million) and has an expected Economic Internal Rate of Return of 20%.
Newest mega-development in Bangkok to have four retail precincts
One Bangkok, a US$3.8 billion mixed development in Bangkok, will be anchored by four differentiated retail precincts. The development will include five luxury and lifestyle hotels, and three luxury residential towers. One Bangkok is expected to house 60,000 residents and attract 200,000 footfalls daily.
Vietnam
Robust growth for VN food and beverage sector
Vietnam’s food and beverage sector currently accounts for 15% of the country’s GDP and is growing at a rate of 7% per annum, according to the Food and Foodstuff Association of Ho Chi Minh City. Vietnam has a population of nearly 100 million with a growing demand for food and beverage consumption. Currently, Vietnamese spend a third of their income on food and beverages.