An image of a Paris Baguette store in Shanghai, China. Photo by Getty Images.
Vietnam’s F&B market has recently witnessed a notable development with the announcement that Paris Baguette has joined the portfolio of VTI Group, a company founded by David Thai that holds significant stakes in well-known brands such as Highlands Coffee and Pho 24.
Cao Nguyen Coffee Services Joint Stock Company, the operator of Highlands Coffee, was initially a subsidiary of VTI. However, following the acquisition of a 60% stake by Jollibee Foods, a Philippine food conglomerate, control of the company shifted, leaving VTI with a minority stake.
60% of the shares were sold to Jollibee Foods, leaving VTI with a minority stake.
VTI’s announcement on LinkedIn
This announcement was made on VTI Group’s LinkedIn page, emphasizing the beginning of a new chapter for both entities as they unite in their mission: “To bring the best of the world to Vietnam, and the best of Vietnam to the world.”
Paris Baguette is owned by SPC Group, a leading South Korean food and confectionery company with a global revenue of approximately USD 5.7 billion in 2020.
Paris Baguette boasts an impressive global presence with over 4,000 stores worldwide. In Vietnam, the brand launched in 2012 and currently operates around 10 stores, known for their upscale bakery and café concept. With this development, Paris Baguette now joins the VTI family.
Completing the F&B Ecosystem
The addition of Paris Baguette completes VTI Group’s ecosystem, covering multiple segments in the market. The group’s portfolio now spans from large-scale coffee chains (Highlands Coffee) to traditional pho (Pho 24) and international coffee and tea brands (The Coffee Bean & Tea Leaf). With Paris Baguette, they now enter the premium Korean-style bakery and café segment.
This strategic move creates cross-selling opportunities between the brands, enhancing the overall value of the system and catering to diverse customer needs throughout the day.
The integration of a well-recognized brand like Paris Baguette is expected to increase VTI Group’s intrinsic value.
In the immediate future, VTI is likely to focus on system integration and cross-selling opportunities. Leveraging Highlands’ network of over 700 stores for Paris Baguette product distribution is a viable option. However, the challenge of synchronizing operations and maintaining quality on a large scale remains to be addressed by VTI.
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