Singapore, Oct 17 - Tea or an aphrodisiac? Fancy coffee is the next frontier for Singapore's Super Coffeemix as it plans to add ingredients like aphrodisiacs to its mixes in a drive to compete against global brands
Super Coffeemix launched "Super Power", a mix with the herb "Tongkat Ali" -- a herbal aphrodiasiac popular in Malaysia -- earlier this year in Malaysia, and is looking to add ingredients like collagen, calcium and fibre into its coffee mixes.
The company expects to see record net profits this year and double-digit revenue growth for 2007, its executive director Peter Tan told Reuters in an interview on Wednesday.
"We are moving more into functional products, adding health aspects to coffee," Tan said.
The company's coffee, consisting of of water-soluble coffee powder, non-dairy creamer and sugar packed in individual sachets, contributed 76 percent of revenue in the first half of 2007.
The company, which saw first-half 2007 profits grow 58 percent versus the previous year and revenue growth at 22 percent, declined to give exact figures but said full-year net profits would be boosted by strong sales in Southeast Asia.
"We are going to see very strong double-digit growth in the revenue side and we are going to have record net profits for 2007," Tan said.
Shares in the firm climbed 6.4 percent, outstripping a 0.8 percent gain in the wider Straits Times Index.
Tan said that by creating other 3-in-1 coffee products he would be able to compete with global brands Nestle and Maxwell House, a subsidary of Kraft Foods. Local competition comes from Food Empire.
Tan said the company, with a stock market value of $320 million, 13 manufacturing facilities in Asia and distribution to 52 countries worldwide, was looking to grow its markets in East Asia, Russia and Mongolia.
"For me, selling a container to a new market doesn't make me satisfied. I want to grow the market by making our products known by the consumer and achieving regular consumption," Tan said.
The firm entered into an agreement with a Russian 3-in-1 coffee company last year to distribute its coffee products in Russia. Tan said that the joint venture is expected to be formalised by early next year.