KUALA LUMPUR (Jan 23): Café chain operator Oriental Kopi Holdings Bhd (KL:KOPI), which debuted on the ACE Market of Bursa Malaysia on Thursday, said the company is scaling up its product offerings in the fast-moving consumer goods (FMCG) segment, targeting the launch of over 20 products by year end.
Oriental Kopi managing director Datuk Calvin Chan Jian Chern highlighted during a press conference that the company is now engaging with major supermarkets to expand distribution channels, providing broader access to its products.
“Currently, we offer around 31 products, including white coffee, sambal, pies, tarts, and more. We are planning to add 20 more products this year," Calvin said. The company will reassess the plan by the first quarter of next year, if it is unable to achieve the target, he added.
Sales of FMCG via in-store and retail channels surged over threefold in FY2024, contributing 17% of Oriental Kopi's total revenue. “Since our products are halal-certified, we will try our best to penetrate into the bigger Malay market as well,” Calvin said.
He added that plans to increase export of its branded packaged foods are also in the pipeline, leveraging indirect distribution channels and participation in food and beverage (F&B) exhibitions and events abroad, to increase brand visibility. Calvin revealed that the company is seeking partnership with key players in foreign markets to streamline distribution and maintain quality.
Oriental Kopi’s initial public offering (IPO) raised RM183.96 million, made a debut at a 71% premium on Thursday, opening at 75 sen compared to the IPO price of 44 sen. At its intra-day high, the stock doubled to 88 sen, before trading at 87.5 sen at 11.35am, valuing the company at RM1.74 billion.
Domestically, Oriental Kopi plans to open 14 new outlets over FY2025-FY2026, targeting states outside the Klang Valley, including Negeri Sembilan, Penang, Johor, Selangor, Pahang, and East Malaysia.
For its overseas expansion, the company is exploring three business models: joint venture owner-operator, master franchisee, and franchise model. In Singapore, Oriental Kopi has partnered with Paradise Group to operate its cafes and plans to open two additional outlets in 2025.
“Since day one, our vision has been to promote authentic Malaysian cuisine to the world. We plan to focus first on neighbouring countries with similar cultural and culinary preferences, before expanding further,” Chan said.
On challenges entering new markets, Chan emphasised the growing global recognition of Malaysian cuisine. “Internationally, Malaysia’s name is gaining prominence, and with more tourists visiting and enjoying our food, we see this as a good sign. By partnering with reputable F&B players in target countries, we aim to introduce our offerings carefully and strategically,” he said.