Find out what Coffee Bean and Tea Leaf have planned for worldwide expansion.

1. Distractions: buzz
Coffee, anyone?
That fresh enticing aroma in the morning is irresistible. Whether it rains or shines,
is a Monday or Saturday, June or December, when waking from slumber, the
first thing WONG MUN WAI and millions of others think of is coffee. Mel Elias,
President and Chief Executive Officer, The Coffee Bean & Tea Leaf shares his
vision of the future of the coffee industry.
B ut first, imagine the Horn of Africa, the
birthplace of coffee - stifling heat, looming
mountains and inland lowlands moist from
the monsoon rains. Coffee bushes, as the legend
goes, originated in the Ethiopian province of Kaffa.
The International Coffee Organisation says the fruit
of the plant, known as coffee cherries, was eaten by
slaves taken from present day Sudan into Yemen and
Arabia through the great port of its day, Mocha.
Mega industry
Enough of the history lesson and let’s fast forward
to the 21st century. The importance of coffee to the
world economy cannot be overstated. It is one of
the most valuable primary products in world trade.
For many years, coffee was second in value only to
oil as a source of foreign exchange to producing
countries.
In May, the International Coffee Organisation
predicted world coffee consumption will continue
to rise despite a doubling in the cost of the
commodity in the last year.
“We base our estimates on what’s happened in
the last 10 years and the average growth rate is
2.5 percent per annum. We think that trend will
continue,” said ICO chief economist Denis Seudieu.
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2. “Single serve will eventually
comprise 30% to 40% of
the whole revenue stream
of Coffee and Tea Leaf
worldwide sales.” Mel Elias
And here we are in the plush surrounds of the
Coffee Bean and Tea Leaf store in Ion Orchard
being introduced to the company’s newest
invention, its single serve beverage system that will
define a large part of its future revenue.
Global growth
“Single serve will eventually comprise 30% to 40% In Europe, 20% of coffee is consumed in a
of the whole revenue stream of Coffee and Tea Leaf capsule system. In the U.S, at the moment
worldwide sales,” Mel said. At the moment, retail only between 1% and 2% of drinkers are
makes up 83% of its business, and franchising and using a capsule system but the rate is
wholesale the remaining 17%. growing rapidly and is the fastest growing
coffee segment. And the events in the West,
The CBTL system allows you to recreate their Mel says, will influence coffee consumption
coffee and tea in the comfort of your own home in Asia with China and India as huge
with just a press of a button. markets.
Never enough In Singapore, the Singaporean predicts the
The core business now though, is still growing total market share is about half a million
its retail footprint and operating stores. But the machines for places like homes, offices and
single serve system is part of a diversified strategy hotels. If Coffee Bean and Tea Leaf manages
targeting business that happens away from retail to claim first place the potential is 50%
stores and takes place at home, work or while market share or 250,000 machines over
travelling. three to five years.
And the prize is significant. Mel says 650 billion cups Thinking of getting ahead of the game?
of coffee are being consumed every year globally Choose from two designs, the Contata
and even more cups of tea. “We have not even at $299 or the Kaldi at $389. A box of 10
scratched the surface of taking market share.” capsules costs $9.10 from www.cbtl.com.sg. lite
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