(“Starbucks enters entrenched Vietnam coffee market | SeacoastOnline.com”) Vietnam is the world's second-largest coffee producer and it has dozens of local chains as well as small coffee shops on nearly every street corner which present a major challenge for Starbucks.Starbucks will have to compete with Trung Nguyen Coffee and Highlands Coffee, a homegrown brand as well as other coffee chains that have opened stores in Vietnam in recent years and who have more experience catering to the Vietnamese love of strong coffee, including the Australian coffee chain Gloria Jean's Coffees International, the California-based Coffee Bean & Tea Leaf, and Nestle instant coffee which is engineered to suit the Vietnamese palette is sold widely in Vietnamese supermarkets.Another threat is Trung Nguyen’s plan to enter the U.S. market which follows the company’s rise to become the biggest roaster and packaged-coffee retailer in a country with a brewing tradition dating from 19th century plantations by French colonists. The chain’s 60 shops across the country serve Vietnamese-style individually brewed cups, along with varieties including Italian espresso and Turkish-style coffees, a mix which Vu expects to sell well in the United States as well.Vu’s focus on specialty beans and roasting includes a variety called “Legendee” created to mimic the flavor of coffee brewed from beans that are recovered from the feces of civets, a weasel-like rodent. The civet coffee is considered a delicacy.According to the company’s website, the coffee roaster discovered enzymes that mimic civet digestion and developed a process to give the coffee the same “magical flavor.Vu said he intends to build a “coffee empire” and a global brand within the next 10 years, rivaling Starbucks. He said that the company is also considering an initial public offering and the timing has yet to be decided.Vu won a medical degree before starting his roasting business. He developed Trung Nguyen from a shop he founded as a student into a coffee retailer with more than 3,000 employees. He plans to increase the number of cafes in Vietnam to 200 in the next two years.Read more: http://www.businessteacher.org.uk/essays/marketing/the-starbucks-entrance-into-vietnam.php#ixzz3Xl7PxUpo
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