Boutique coffee firm eyes Cebu as potential market

CEBU, Philippines - An American coffee brand is eyeing Cebu as a potential market to expand outside Manila and increase its presence in the domestic market.

Tully's Coffee is a specialty coffee retailer and wholesaler based in Seattle, Washington, United States. It primarily boasts of serving handcrafted coffee drinks that are of high quality.

It has 200 US-based stores that are mostly present in the west coast of America with its 200 stores in US. There are also 500 shops of Tully’s Coffee in Japan.

In America, Tully's Coffee is also popularly known as the coffee shops that are always found adjacent to larger coffee chains such as Starbucks.

In the Philippines, there are seven company-owned stores and two franchise stalls of Tully’s Coffee that are all based in Manila.

AgriNurture Inc. - International Retail chief executive officer Phil Oakden said in an interview that Tully’s Coffee is looking for franchisees in Cebu as its first expansion strategy outside Manila.

It was the first time of Tully’s Coffee to come to Cebu when it joined the US Fine Foods Show last month. Oakden said that they participated in the expo to explore the local market further and showcase their products in Cebu.

The boutique coffee company aims to open its first franchise in Cebu, particularly in resort areas and business districts, within the next six months.

Oakden cited that although Tully’s Coffee is popularly known in US by the upper-class market, it is widely patronized by a larger mass market in the Philippines.

He also described Filipinos as very keen when it comes to value for money, adding that the company considers coffee as an affordable luxury for working professionals, families and coffee lovers.

Aside from Cebu, they are also eyeing Baguio and Davao as potential markets to expand into. Oakden added that they plan to introduce the coffee products of Tully’s Coffee in the supermarkets to further penetrate the domestic market.

He cited that the increase of the middle-income class and high purchasing power of consumers drive the booming coffee market in the Philippines, thus more coffee chains opening up in the country.

Amid the stiff competition in the market with the presence of international and local coffee shops, he said that Tully’s Coffee manages to stand out with the wide variety of quality drinks using handcrafted coffee beans.

“Rather than watching the competition in the market, we focus on what we are and the products that we offer, ensuring that they are in better quality. For instance, we use ice cream instead of ice for our iced coffees. We want to be known as a unique place where people go and meet together and still have a great time with premium handcrafted coffee,” Oakden said.

Tully’s Coffee offers a menu composed of specialty coffees, Bellaccino or gourmet-flavored coffees, espressos, smoothies, gourmet shakes, brewed and iced teas, sodas, cakes, desserts, pies, baked goods, pastries, and coffee-related supplies.

Its coffee beans and other ingredients are all imported in US while its fruits are sourced locally. —JMD (FREEMAN)