Tim Horton’s Asia Pacific has announced its exclusive agreement with Marubeni Growth Capital Asia (MGCA). The deal will allow the enterprise to launch cafes across Singapore, with the potential for the collaboration to extend into Malaysia and Indonesia.
The decision will allow Tim Horton’s to draw from the post-pandemic revival of the coffee and tea shop market at an estimated two billion U.S. dollars in the three named countries.
The partnership reflects the brand's intentions to diversify its geographic base. However, it also indicates the expansion of Marunbeni, a Japanese food business conglomerate, which will leverage its existing retail power to propel Tim Horton’s across the southeast.
Consumer Analyst from Global Data, Bobby Verghese, commented that the arrangement intends to capitalise on the growing coffee market in Singapore, Malaysia, and Indonesia. The attraction of the western brand is intensely influenced by western lifestyles, which are broadcast internationally.
“Tim Hortons and Marubeni aim to capitalise on the blossoming coffee culture in Southeast Asia, fueled by rapid urbanisation and Westernisation,” stated Verghese.
Verghese goes on to list that the ambience, uniquely western-style scheme of restaurants and brands such as Tim Hortons, where there is free Wi-Fi, and a culture of social gathering, makes the cafe sure to be a popular new choice for dining and coffee drinking.
“The trendy Western-Eastern fusion food and drinks with social-media-worthy presentation are another critical factor attracting Millennials and Gen Z crowds to these cafés and tearooms.”
The growth of coffee culture in these countries has much to do with the social culture around coffee, with a specificity in its popularity being attributed to it being an alternative to alcohol as a social lubricant in countries with a sizeable Muslim population.
“Tim Hortons has timed its launch to capture this resurgence in out-of-home dining and tourism activity in the region after authorities lifted all COVID-19 restrictions.”
Although the consumer is lower and forecast to remain so for the immediate future, the healing and recovery of the three economies following the impacts of the pandemic and the Russia-Ukraine conflict will mean significant growth for the coffee and tea market.
