Dao-Heuang Group, one of the largest companies from Lao PDR, joins hands with Sum By Dee Co. Ltd., to launch “Dao Coffee” in Thai market, highlighting the product uniqueness as 100% premium-grade Arabica with no added flavor. Strategic efforts are to be made through all channels to reach consumers.
With focus on brand building, the first charming TV commercial in the series “Uen Dao” will be launched to communicate the special qualities as signature blend by Dao Coffee and to promote consumption in Thailand.
The major company from Lao PDR, Dao-Heuang Group by the Litdangs, has had a great success in a range of businesses: retail, real estates, consumer products and hotel in Lao PDR. There are, for example, more than 7 duty free shops along the border and Dao-Heuang market. The most well received products by the domestic and export markets are “Dao Coffee” and the newly added promising line, finely selected quality and naturally delectable “Fruit Chips.” The boutique hotel is now under construction, expected to offer services in the near future.
At the Bytes Room, the Renaissance Hotel, Rajprasong: Dao-Heuang Group, Lao PDR, led by Founders Dr. Hao and Madame Leuang Litdang and Ms. Boonheuang Litdang, Vice President, together with Mrs. Yuwadee Voravath, General Manager of Sum By Dee Co. Ltd., an exclusive distributor of “Dao Coffee” and dried fruits in Thailand, hold a Press Conference to officially launch “Dao Coffee” and to introduce the TV commercial “Uen Dao” in Thailand for the first time.
Physician turned creator of “Dao Coffee,” premium-grade coffee is well accepted by the world market.
Dr. Hao Litdang, founder of Dao-Heuang Group, a philanthropist doctor who has dedicated himself to helping the poor in Laos throughout his medical career, revealed that his coffee business began “when the government promoted coffee growing for export to bring in more money.” Personally he intended to go out living with nature and do some agriculture after retirement from his medical profession. “I was interested to do farming, starting to learn about coffee growing and production in Vietnam. I hired Vietnamese to grow coffee and I took care of the farm myself, initially with quite a bit of losses. But we, Madame Litdang and I, are very determined and patient. We have no fear to fail. We fell and rose again and again until we succeed today while others already gave up.”
Dao-Heuang Group, the mega business group in Lao PDR harnessed by a successful businesswoman Madame Leuang Litdang, emphasizes its strong points as a complete coffee business operator: from cultivation of coffee, species development, advanced production system to finished products, leveraged by geographical advantages, the plateau rich in minerals from volcanic soil.
Madame Leuang Litdang, one of the most well-known business women in Lao PDR, said: “Dao-Heuang Group has started in 1991 with “Dao-Heuang duty free shops” or tax free shops along the frontier which finally became a hub for import goods. There are currently 7 shops and we have a plan to open the 8th shop in Laos, on the borderline of southern Laos – Cambodia. The best-selling shop is the Vientiane branch near a border town of Nong Khai.”
At present, Dao-Heuang Group is considered a complete premium-grade coffee business operator, from growing and developing species, production processes to finished products for sale in a full range: roasted coffee beans, instant coffee, pre-mixed 3 in 1and canned coffee. The company started growing coffee, tea and other plants for agricultural products in 1998 and opened its second factory in 2010. The production area totals 1,500 rais. The Contract Farming Project was also initiated to help more than 1,000 farmer families five years before the factory started operation. The second factory is well equipped with the most advanced machineries and the freeze drying technology. The management of Dao-Heuang Group was most delighted when HRH Princess MahaChakriSiridhorn paid a visit to the coffee plantation and Dao Coffee factories twice.
Dao-Heuang Group is proud to substantially contribute to farmer development in the Contract Farming Project. According to Madame Leuang, “the project was aimed to support farmers in agricultural techniques as well as to provide coffee species and to promote use of organic fertilizers. In addition, Dao-Heuang Group built an organic fertilizer plant using raw materials from coffee grounds as well as market and soil waste. Dao-Heuang Grouphas focused on business ethics and social contribution with an intention to be a giver as much as possible. For example, farmers in the Contract Farming Project are given rice to feed their family while waiting for crop yields. If we want to take good produce, we need to give first,” said Madame Leuang.
Focus on “giving concept” is handed down to business successor generation 2. The company is not getting ready to expand worldwide and to enter AEC markets.
Ms. Boonheuang Litdang, Vice President of Dao-Heuang Group said: “The company is the largest coffee producer in Laos with the head office located in Pakse, Champasak, Lao PDR. Our annual revenue is over 100 USD with a 20-30% growth rate per year. Eighty percent of the company income is from Dao Coffee and another 20% is from the duty-free shops.”
The strong point of “Dao Coffee” comes from the ideal geography for Arabica growing, combined with 100% organic farming practices and French cultivation techniques developed since early 1990s. The plantation is on the Bolaven plateau in Paksong, Champasak, which has been enriched with volcanic minerals deposited in soil that coffee needs. Plentiful water from natural sources at 1,200 meters above the sea level and optimal average temperature at 25 C all year long on the vast land of 250 hectares (1,500 rais) make the coffee produce have a unique taste. We pay attention to every detail in the production process, from planting to growing, picking, sorting and roasting. Our factory uses the Wet Process to sort and wash coffee cherries (ripe coffee fruits) with a daily capacity of 2,000 tons to accommodate coffee cherries from contracted farmers as well. We invested more than USD 128 M into the factory at Pakse on the piece of 50-hectar-land (300 rais). The production process at our factory meetsISO22000.2005 standard, fully computerized with Japanese technologies for sorting coffee green beans. Machineries and know-how in producing instant coffee are from GEA Nira, Denmark and Germany, adopting freeze drying and spray drying methods at the capacity of 450 kilograms per hour or no less than 2,000 tons per year. The coffee roasters “Probat” from Germany at our factory currently run at a capacity of 1,000 kilograms per hour.”
Three products of “Dao Coffee” to be introduced to the Thai consumers at the initial phase are pre-mixed 3 in 1instant coffee, instant coffee and roasted coffee beans.
1. Pre-mixed 3 in 1 instant coffee from Arabica, no added flavor, no cholesterol, available in 3 sizes: 1,000 grams (in 50 twenty-gram-sachets)
600 grams (in 30 twenty-gram-sachets)
100 grams (in 5 twenty-gram-sachets)
Tastes: 3types for coffee lovers who prefer different tastes
Dao Coffee 3 in 1 Original, original and mild taste
Dao Coffee 3 in 1 Espresso, creamy and balanced taste
Dao Coffee 3 in 1 Turbo, bold and creamy taste
2. Instant coffee from freeze-dried Arabica:
Dao Instant Coffee Platinum, premium-grade coffee from finely selected raw materials in sizes 60 and 95 grams
Dao Instant Coffee Gold for lovers of a bold taste in sizes 30 and 100 grams
3. Roasted coffee beans available in the following 3 types in 2 sizes, 200 and 500 grams
Dao Roasted Beans Tipica from medium roasted Arabica Tipica, special species grown only in some parts of the world
Dao Roasted Bean Arabica Premium from medium roasted Arabica to maintain a world-class aroma of good coffee, specific characteristics of “Lao Coffee”
Dao Roasted Beans Strong Blend from dark roasted Arabica for bold coffee lovers and favorite iced coffee menu for Thais
As for foreign markets, Ms.Boonheuang said: “Dao Coffee is now expanding our export market with an aim to have one distributor in each country especially in the ASEAN region including Thailand, Vietnam, Myanmar and Cambodia. For Japan, we focus on unroasted Arabica with the export volume at approximately 6,000 – 7,000 tons per year. China is a big potential market for 3 in 1 products. By the hand, when AEC taken in to action in the year 2015, Lao PDR will get the most advantages in term of the trading territory is surrounded along the Lao border side and Lao is the AEC transportation hub. This is resulted to export facilitate and logistics effectiveness for Lao export expansion.”
“The company is now trying to push more instant coffee into international markets,” she added. “We planned to open market in the Middle East where people drink a lot of coffee by sending a research team out there to do a market survey and data collection on consumer behavior. What types of coffee do they drink most? Jordan is the first country that we started doing a survey because consumers there tend to respond well to the 3 in 1instant coffee from which we offer 3 different tastes for them to choose,” Ms. Boonheuang concluded.
Officially enters the Thai market with the launch TV commercial “Uen Dao”
Mrs. YuwadeeVoravath, General Manager of Sum By Dee Co. Ltd, sole distributor of “Dao Coffee” in Thailand revealed that Dao Coffee saw a big opportunity for the premium-grade coffee in the Thai market which has very few players. “We would like to offer premium quality coffee at ASEAN prices to Thai consumers. The brand has been well received and the sale has continued to grow. In 2014, we aim to create a brand awareness for Dao Coffee by allocating more than 80 million-baht-budget for the product launch through the first “Dao Coffee” TV commercial, armed with integrated marketing strategies and continued sales promotion including POS activities, sampling, and many more. The 30-second-launch TV commercial entitled “Uen Dao” features “Dao’s secrets” to communicate the unique selling points of Dao Coffee: growing in the volcanic soil, individually picking coffee cherries from the trees (ripe coffee fruits are turned red like cherries). The commercial is presented in such a way that evokes the feelings one may have in watching a movie. It shows natural scenic beauty of the coffee plantation, memorable, honest and pleasant conversation in the Lao language and romantic touch enhanced by characters when discovering new things. The commercial will start airing from April 21 onwards.
To reach customers even more widely in major cities and all regions, Dao Coffee has arranged many distribution channels like convenience stores, modern trades and community malls i.e. Gourmet Market, Home Fresh Mart, Foodland, Max Value, Golden Place, Lemon Farm, 7-11, Jiffy, Makro, Rimping Supermarket in Chiang Mai, Jae Leng shop, and “Dao Coffee Shop” at Thanya Park Srinakarin. The flagship shop “Dao Coffee Siam Square branch” will soon be open as well,” said Mrs. Yuwadee.
