How an ex-manager grew her coffee business

[webfact]

How an ex-manager grew her coffee business

By Somluck Srimalee
The Nation

 

Watcharee Promthong, owner and managing director of Nan Duo Coffee Limited Partnership, presents the company’s coffee products including coffee beans and three-in-one coffee products. The company generated sales worth Bt10 million last year.

 

BANGKOK: -- SINCE INVESTING Bt400,000 to set up Nan Duo Coffee Limited Partnership nine years ago, Watcharee Promthong has built up the company in Nan province to the point where it generated sales value of Bt10 million last year, and targets Bt30 million this year.

 

She has also built up a network of coffee farmers in Nan province, starting out with only 20 farms on 100 rai (16 hectares) to comprise 850 farms on 2,500 rai this year. She targets raising that number to 1,100 farms on the 3,500 rai before the end of the year. 

 

“We plan to invest Bt7 million this year to double our coffee-bean production capacity … and boost our sales by 200 per cent compared with last year,” she said.

 

Watcharee, 38, decided to resign from her job as manager of a coffee company in Bangkok nine years ago and invested her savings of Bt400,000 to set up a small plant to produce roasted coffee beans under the Phu Coffee brand to distribute in wholesale markets in Pattaya at the end of 2007.

 

“We saw a business opportunity as Thai people were switching from instant to fresh coffee at that time,” she said.

 

Three months after establishing her business, she began distributing her products at 20 wholesale outlets in Pattaya and Chon Buri province, generating average income of Bt60,000 a month.

 

“Our savings of only Bt400,000 were not enough for our business expansion because we had to provide credit lines for our wholesale customers of an average of one month. As a result, my mother had to sell 5 rai of her rice plantation in Nan province to provide Bt4 million for me to expand my business,” Watcharee said.

 

She added that when she started the business, she could not get a loan from the commercial banks, so she had to ask her mother to support her business. 

 

However, she promised her mother that she would buy more land for her later.

 

This is the challenge for her, to grow her business so she can keep that promise, she said.

 

Three years after expanding her business in Pattaya, Watcharee expanded her distribution channels from 20 wholesalers to 200 covering Pattaya, Chon Buri, Rayong, Chachoengsao, Chanthaburi, Trat, Kanchanaburi, Phetchaburi and Prachuap Khiri Khan provinces. 

 

After her initial success distributing Phu Coffee in the Eastern region of Thailand, Watcharee decided to move her business to her mother’s land in the north of Thailand, in Nan province, and also to expand the business by collaborating with coffee farmers there.

 

From 20 farmers in 2010, she has expanded her coffee- grower network to 850 farmers on 2,500 rai in Nan province this year. This generates average income of Bt40,000 a month per farmer family. 

 

Meanwhile, the company enjoys double-digit revenue growth every year. 

 

Watcharee said the key to the success of her products, which include roasted coffee beans, three-in-one instant coffee, and raw coffee beans, is their quality. She also provides good benefits for the company’s wholesale |customers by offering one free package for every 10-package order. 

 

“Now I can afford to buy up to 50 rai of land for my mother. It will not be the same land that she sold nine years ago, but I can do what I promised and will buy land for her when I see the opportunity to do so,” she said.

 

Source: http://www.nationmultimedia.com/news/business/corporate/30316570

 

-- © Copyright The Nation 2017-05-29

[fruitman]

Thai coffee costs double  the price of good coffee in Europe. So there's plenty room for profit there.

[macksview]

well done young lady, you know your coffee , bright talented woman.

 

lots of happy local farmers if they average 40,000 a month.

[ezzra]

While new business ideas and new products are dime a dozen, marketing

and supporting the new products and services is the hardest parts,

it seems that this lady have successful and achieving that, Kudos....

[mok199]

LIKE

 

[AJBangkok]

The article doesn't make sense. The company generated 10 million baht in sales value ( not profit) last year and she claims she is generating 40,000 baht every month for 850 farmers that's 34,000,000 million baht per month. It's not possible you can't have annual sales revenue of 10 million and pay out 408 million annually to the farmers growing the coffee. 

[coulson]

The article doesn't make sense. The company generated 10 million baht in sales value ( not profit) last year and she claims she is generating 40,000 baht every month for 850 farmers that's 34,000,000 million baht per month. It's not possible you can't have annual sales revenue of 10 million and pay out 408 million annually to the farmers growing the coffee. 

40,000 per farmer family, so I guess some of them are related.

Good on her, no support from the banks either.

[Moonmoon]

In the gloom of the current economy, its good to see someone doing well. Doesn't mean that we cannot make it as well. 

Here's to everyones success and good fortune 

[billd766]

7 hours ago, fruitman said:

Thai coffee costs double  the price of good coffee in Europe. So there's plenty room for profit there.

 

In case you had not noticed the topic is about coffee grown and sold in Thailand.

 

She does not appear to export to Europe.

 

How much coffee is grown in Europe and how much is exported to Thailand.

 

I admire her for chucking in a good job and going out on her own and building a business from scratch.

[Muzarella]

Pobably she knows about Starbucks history in Seatle..... Well done lady!

[fruitman]

18 hours ago, billd766 said:

 

In case you had not noticed the topic is about coffee grown and sold in Thailand.

 

She does not appear to export to Europe.

 

How much coffee is grown in Europe and how much is exported to Thailand.

 

I admire her for chucking in a good job and going out on her own and building a business from scratch.

If the Thai market wasn't so protected the European coffee (from S-America of course) would put this lady out of work. 

 

I don't understand why the Thai pay those high coffeeprices while there's even better coffee for sale half the price, even in Makro Thailand.

 

I love good coffee but for the lowest price of course.  The Thai coffeemarket is still very undeveloped, people have no idea about worldprices or so it seems. Maybe they better drink S-american coffee as well and grow another produce in Thailand which has high value.

[mikebell]

I agree with Fruitman above.  Thai coffee is generally poor and over twice as expensive as Vietnamese coffee.  Every time I go to Hanoi I buy as much as I can carry.

[billd766]

On 29/05/2017 at 5:19 AM, fruitman said:

Thai coffee costs double  the price of good coffee in Europe. So there's plenty room for profit there.

 

5 hours ago, mikebell said:

I agree with Fruitman above.  Thai coffee is generally poor and over twice as expensive as Vietnamese coffee.  Every time I go to Hanoi I buy as much as I can carry.

 

There seems to be thousands of very satisfied customers in Thailand that disagree with you though.

 

Certainly enough for her to make a good business from it.

[fruitman]

15 hours ago, billd766 said:

 

 

There seems to be thousands of very satisfied customers in Thailand that disagree with you though.

 

Certainly enough for her to make a good business from it.

You tell those happy customers that Douwe Egberts coffee in the Makro tastes better and costs half the price....let's see how long they stay happy customers for Thai coffee.

[Ace of Pop]

Macro has a nice blend , don't know what it is ,but beats Starbucks any day. Well done Lady, don't know where Ferangs drink cheaper coffee in Europe , my last one was 12gbp in A London Bistro joint years ago 20 pence in a Truck stop, Thai Old Sock stufs not bad for 10 Bht with condensed milk at the Markets..?[emoji477]️


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[fruitman]

24 minutes ago, Ace of Pop said:

Macro has a nice blend , don't know what it is ,but beats Starbucks any day. Well done Lady, don't know where Ferangs drink cheaper coffee in Europe , my last one was 12gbp in A London Bistro joint years ago 20 pence in a Truck stop, Thai Old Sock stufs not bad for 10 Bht with condensed milk at the Markets..?️


Sent from my iPhone using Thaivisa Connect

The blend is made by a professional coffeetaster who tastes hundreds of different coffeebeans every day. They use beans from all over the world at those big companies. 

I doubt that Thailand has so many beans to mix and get the perfect blend.

 

Very good coffee costs 159 baht for 500 gram at the Makro. The aluminiumfoil packs. Thai coffee costs the same but for 250 gram.

[Ace of Pop]

I meant in the Cafe at Macro ,at home we just have instant muck or I drink the real stuff too much..[emoji85]


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[billd766]

16 hours ago, fruitman said:

You tell those happy customers that Douwe Egberts coffee in the Makro tastes better and costs half the price....let's see how long they stay happy customers for Thai coffee.

 

Why don"t you tell them. I am quite happy with Nescafe 3 in 1. It works for me.

 

You prefer something different which is fine but thousands of Thais prefer her coffee which is fine by them.

[fruitman]

58 minutes ago, billd766 said:

 

Why don"t you tell them. I am quite happy with Nescafe 3 in 1. It works for me.

 

You prefer something different which is fine but thousands of Thais prefer her coffee which is fine by them.

Well have fun with the Nescafe, i don't drink that stuff and need real fresh good coffee.

 

And if the Thai could afford real coffee they would drink that i'm sure.  They just don't know that good coffee is much cheaper than Thai coffee and if you don't tell them they will never know.

[Ace of Pop]

Getting into the realms of Wine Sniffers ,,n Snobery. I really can't tell where ground come from but I like Arabica Thai , if it wasn't written on the Bag it could have been from anywhere.I bought a Blend in the U.K. Brazilian and African, very expensive,nice with Remy after Dinner. Positive my Guests would have enjoyed aCup of Arabica just as much Now me Nescafé gone cold dam it.


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[billd766]

13 hours ago, fruitman said:

Well have fun with the Nescafe, i don't drink that stuff and need real fresh good coffee.

 

And if the Thai could afford real coffee they would drink that i'm sure.  They just don't know that good coffee is much cheaper than Thai coffee and if you don't tell them they will never know.

 

What an arrogant snob you are, assuming that you know more than  thousands of Thai people.

 

Just because YOU don't like it, nor do you like Nescafe 3 in 1 doesn't make them bad coffees, just not to your taste.

[fruitman]

12 hours ago, billd766 said:

 

What an arrogant snob you are, assuming that you know more than  thousands of Thai people.

 

Just because YOU don't like it, nor do you like Nescafe 3 in 1 doesn't make them bad coffees, just not to your taste.

 

Yes, i;m a european coffeesnob, very arrogant and like a jehova witness spreading the news about affordable coffee in Thailand. 

Of course peasants can still drink nescafe or acorncoffee but wait untill they discover the real deal and wake up.

 

Do they already have electric coffeemachines in kamphaeng phet these days?

[billd766]

12 hours ago, fruitman said:

 

Yes, i;m a european coffeesnob, very arrogant and like a jehova witness spreading the news about affordable coffee in Thailand. 

Of course peasants can still drink nescafe or acorncoffee but wait untill they discover the real deal and wake up.

 

Do they already have electric coffeemachines in kamphaeng phet these days?

 

More ignorance and arrogance again, maxed out with snobbery I see.

 

You really are a nasty negative person and fortunately will will never meet.

 

quote "Of course peasants can still drink nescafe or acorncoffee but wait untill they discover the real deal and wake up."

 

Several coffee shops in KPP have the proper expresso coffee machines but as it is 65 km away I don't bother unless I am up there for something else. They actually make excellent coffee and cakes too.

 

Thais up country drink the coffee that they like, are happy with and can afford. Unlike you they are not snobbish about it.

 

 

[fruitman]

8 hours ago, billd766 said:

 

More ignorance and arrogance again, maxed out with snobbery I see.

 

You really are a nasty negative person and fortunately will will never meet.

 

quote "Of course peasants can still drink nescafe or acorncoffee but wait untill they discover the real deal and wake up."

 

Several coffee shops in KPP have the proper expresso coffee machines but as it is 65 km away I don't bother unless I am up there for something else. They actually make excellent coffee and cakes too.

 

Thais up country drink the coffee that they like, are happy with and can afford. Unlike you they are not snobbish about it.

 

 

Here's some local food for you which you can afford and don't be snobbish about it, just eat like a local.

 

[gk10002000]

On 5/28/2017 at 10:21 PM, AJBangkok said:

The article doesn't make sense. The company generated 10 million baht in sales value ( not profit) last year and she claims she is generating 40,000 baht every month for 850 farmers that's 34,000,000 million baht per month. It's not possible you can't have annual sales revenue of 10 million and pay out 408 million annually to the farmers growing the coffee. 

yeah, seems a bit off doesn't it?  I am pretty sure the farmer money is not meant to be money she gave them.  Maybe just pass through money or transaction money or something like that.  Or maybe she went to the same economics or math class at the national thai economists went to

[Ace of Pop]

Here's some local food for you which you can afford and don't be snobbish about it, just eat like a local.
 

Are You another who just inherited a few bob,sound like a new money brat to me, this Lady has got off her but, done something to improve Her Wealt n a few others on her way that's been badly reported by some oik with a degree in Lardy Da Drivel like so many Students Loan Abusers these days. A few positive congratulations would be nice, next some Uni Twerp will say She's got a BMW, and hit a drunk peasant. Thers some sad jealous have nots who post here n don't disguise it well Rant Over n Nescafé cold AGAIN.?[emoji477]️


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[fruitman]

6 hours ago, Ace of Pop said:

Are You another who just inherited a few bob,sound like a new money brat to me, this Lady has got off her but, done something to improve Her Wealt n a few others on her way that's been badly reported by some oik with a degree in Lardy Da Drivel like so many Students Loan Abusers these days. A few positive congratulations would be nice, next some Uni Twerp will say She's got a BMW, and hit a drunk peasant. Thers some sad jealous have nots who post here n don't disguise it well Rant Over n Nescafé cold AGAIN.?️


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Oh i see, so because i drink real coffee i'm a moneybrat, well you haven't seen what i eat mate!

 

Yes it's easy to make money with coffee in thailand because the prices are 2 times too high so you guys can't afford it.

 

I have another tip to save some bucks, drink rainwater!! They all do it upcountry.

[KC 71]

The best coffee in Thailand is in the North
Really good arabica !