Blog 5: Doi Chaang plans roaster in Bucharest

Doi Chaang plans roaster in Bucharest.

Doi Chaang Coffee Company is Thailand’s premium coffee producer and retailer. The company’s base is in Thailand while it also has branches in Vancouver and Venice. In the article, it talks about the company plans to spend 255 million baht ($1 CAD = 30.8 baht) to expand its business and production to Eastern Europe as well as improving its local production to satisfy an increasing in demand for high quality of roasted coffee. It is mentioned that the company will build a new coffee-roasting factory in Bucharest, Romania, to support the new market, which the company is trying to achieve. The new factory will be an advantage of the company as it allows the company to distribute its products around Europe, which is an opportunity for the company to expand its consumer base. The company’s strategy includes opening its own café and stores around Thailand and other countries in order to be able to sell its own products and becomes more profitable.

As the demand for roasted coffee is increasing everyday whereas the supply is limited, the president of the Doi Chaang, Mr. Wicha Promyong, is already planning to increase its production and becoming even more efficient in order to cater all the demand that increases. When the supply increases, the cost of producing coffee is increasing too. The strategy that the company is using to keep its cost low is to export unroasted coffee to its branches around the world, as it is cheaper than roasting from Thailand. This strategy gives advantage to the company to compete against other local and oversea coffee producers.

Doi Channg’s coffee beans are grown by the local farmers in Northern Thailand, which are under Doi Chaang’s contract. The company is being social responsible by offering jobs to the locals so that they are self-sufficient. The company also gives back to the society by spending 30% of its annual profits to the Doi Chaang Foundation that sets up schools in rural areas.

I really like how the company uses coffee beans that are grown by the locals instead of using technology as well as set up its foundation to help local children. It really gives a huge positive impact to the society.

 

Article:
http://www.bangkokpost.com/business/economics/319182/doi-chaang-plans-roaster-in-bucharest

 

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