Highlands Coffee remains a Vietnamese brand despite foreign investment: CEO

Highlands Coffee remains a Vietnamese brand, according to its founder and CEO David Thai, despite substantial investment from the Philippines’ Jollibee Foods Corporation. In a rare public appearance, Thai addressed rumors surrounding the brand’s identity, stating: “After we partnered with Jollibee, many assumed we became a Filipino company. I want to make it clear: Highlands Coffee is still a Vietnamese business.”

David Thai founded Highlands Coffee in 1999 under Viet Thai International. In 2012, he sold 49% of its Vietnamese operations and 60% of its Hong Kong business to Jollibee for $25 million. Thai emphasized that Jollibee serves only as a strategic advisor and does not intervene in the daily management of Highlands Coffee, which remains under his leadership.

He also shared that prior to partnering with Jollibee, Starbucks had made an offer to acquire Highlands. At the time, the deal would have made him “a very rich man” at just 32 years old, and his admiration for Starbucks nearly led him to accept. However, over six months of discussions, he realized that Starbucks lacked a concrete vision for Highlands and would prioritize its own brand’s expansion instead. Consequently, he declined their offer to protect Highlands’ Vietnamese identity and to directly compete with larger global players. 

At the same time, Jollibee was flourishing with its fast-food ventures in Vietnam. Thai saw the Filipino company as a strategic partner that understood the local market well, prompting him to accept their investment.

“Many major Vietnamese companies like Vinamilk and Masan have foreign investors. So why can’t Highlands also be considered a Vietnamese company?” he said.

With Jollibee’s backing, Highlands Coffee expanded rapidly, operating 850 stores domestically and internationally by the end of last year, including through franchising. Jollibee’s annual report indicated that Highlands Coffee’s EBITDA (earnings before interest, taxes, depreciation, and amortization) reached nearly 2.34 billion pesos (around $41 million), up 4.5% from 2023.

Speaking to VnExpress, Thai attributed this success to Jollibee’s deep understanding of Highlands’ business model, strong customer focus, and a clear strategy for product, pricing, and taste positioning. He added that the company has streamlined operations and scaled systematically. Innovation remains crucial, particularly for a large chain, Thai stressed. “After 25 years in the industry, I’ve faced countless failures to achieve today’s success.” While factors like pricing, store location, and promotions are important, Thai emphasized that taste is fundamental, driving both product development and marketing.

In coffee, he said, “We cannot compromise on taste. We may not have the very best taste, but we guarantee consistency across all locations.” To achieve this, Highlands Coffee invested VND500 billion ($19 million) into its first roasting and grinding plant, located in Ba Ria – Vung Tau Province. Covering 24,000 square meters, the automated facility ensures product consistency and aims for an annual production capacity of 75,000 tons when fully operational. Looking ahead, Thai plans to move beyond exporting raw coffee beans by exporting roasted coffee to markets such as Southeast Asia, Japan, South Korea, Taiwan, Australia, Europe, and the U.S.