KUALA LUMPUR: Palaterium Sdn Bhd, which operates Malaysia's newest specialty coffee chain HWC Coffee, will invest RM60 million to establish up to 85 stores by December next year.
"We have a very good perspective for the coffee market, so we are rapidly growing. To attract more people to enjoy our coffee, we will increase our marketing spending and promotional efforts," said Hoe Kian Choon, the founder of HWC Coffee Malaysia.
To capitalise on the expanding coffee market, Hoe said Palaterium would invest RM25 million this year to open 35 shops and RM35 million in 2024 to open 50 stores.
The RM25 million investment this year was also to open a coffee academy, a flagship store and a new corporate office at Millerz Square in Old Klang Road, he told the New Straits Times.
"Specialty coffee and light food like cakes and croissants are what we sell. Because of the demand, we will soon start selling hot food. We are growing the company quickly, but cautiously," he added.
Marketresearch.com projects that Malaysia's coffee market will generate US$1.46 billion In revenue with a 4.4 per cent annual growth rate this year.
"With 33 million people, we can't go wrong in this area. Finding a skilled barista, choosing a decent site, and educating customers about the differences between specialty and regular coffee are hurdles, but these won't stop us from expanding," said Hoe.
Palaterium is 70 per cent-owned by Gazeum Sdn Bhd, and 30 per cent by HWC Coffee Taiwan.
HWC Coffee Taiwan is the manufacturer of HWC roasted coffee beans, drip coffee, and coffee brew bag products.
It operates a 14,000 sq ft roasting and packaging factory in Taiwan and exports the products to 26 countries worldwide.
The Taiwan company recently invested RM1.3 million to purchase a coffee roaster to improve the quality of its roasting process further and facilitate its business expansion in Southeast Asia.
Last year, Palaterium invested a total of RM10 million to launch up to 15 HWC locations in Malaysia.
The first location was established in One Utama in April 2022.
The company currently has 18 outlets, with Gardens Mall, Pavilion Bukit Jalil, and One Utama housing the most profitable ones said Hoe.
Hoe said it planed to increase sales in foreign markets with 10 pipeline outlets in Brunei, Singapore, and Indonesia.
"We are opening a flagship outlet in Brunei next month. We have enquiries from Bangalore and we are doing our due diligence. For overseas markets, The idea is to have a local partner manage the operations," he said.
