Highlands Coffee founder takes over Paris Baguette’s Vietnam business

Viet Thai International JSC (VTI), founder of the Highlands Coffee chain, said its portfolio now includes the Vietnam operations of South Korean bakery brand Paris Baguette, marking another step in the company’s food and beverage expansion.

The announcement, posted on VTI’s LinkedIn page, described the move as part of its mission “to bring the best of the world to Vietnam, and the best of Vietnam to the world.”

Paris Baguette, owned by South Korea’s SPC Group, is a global bakery-cafe chain with more than 4,000 outlets worldwide. It has about 10 stores in Vietnam since entering the market in 2012.

The integration could create cross-selling opportunities, such as distribution through Highlands Coffee’s network of more than 700 outlets.

The addition builds on VTI’s existing portfolio, which includes Highlands Coffee, Pho 24, and The Coffee Bean & Tea Leaf. Highlands Coffee is majority-owned by Philippine food giant Jollibee Foods, which holds 60%, with VTI retaining a minority stake.

According to a March report by iPOS, by the end of 2024, the number of F&B outlets in Vietnam reached 323,010, marking a 1.8% rise compared to the previous year. Despite challenges in consumer spending, the F&B sector’s revenue is projected to reach approximately VND688.8 trillion ($27.3 billion), up 16.6% from 2023.

However, despite the overall industry growth, only 25.5% of the 4,005 surveyed F&B businesses reported stable revenue compared to 2023, with just 14.7% experiencing growth. Facing rising raw material costs, 49.2% of F&B businesses anticipate raising prices in 2025 to offset cost pressures.

Despite the challenges, the local F&B industry is projected to grow by 9.6% in 2025, with expectations for the emergence of new food trends.