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Local businesswomen stimulate Lao coffee consumption
Two local businesswomen have signed a cooperation agreement, and expect to develop a successful venture to promote local products in the Lao market.
Dao-Heuang Group, a local major coffee processor, signed a distribution agreement with Miracle Lao Trading Co Ltd on Tuesday in Vientiane, with Dao-Heuang giving the latter sole distribution rights for the product within Laos.
“The agreement means the Dao-Heuang Group will continue to produce the product, but Miracle will be the sole distributor in the domestic market,” Miracle Lao Trading Co Ltd President Ms Chanthamaly Saysanith said at the signing ceremony.
Ms Chanthamaly said the initial agreement will last for five years and she believed she would be able to supply Dao-Heuang products to all districts in the country.
Dao-Heuang Group President Ms Leuang Litdang said that while Miracle will have sole retail rights within Laos, the Dao-Heuang Group will continue to market their range of products in all overseas markets.
“It is up to Miracle Lao as to how long there will be cooperation with Dao-Heuang Group in regards to distribution in Laos,” Ms Leuang said.
The group encourages local farmers to grow coffee and supply the group with coffee beans for processing.
“Currently we have 40 village groups that produce raw coffee for us; we expect to expand that to 100 village groups by next year to increase our supply,” Ms Leuang said.
The distribution agreement with Miracle Lao should help to lower the price of Lao coffee and keep it competitive with imported products.
“Previously, coffee cost 24,000 kip per 600 grammes, which was similar to imported products; now we can get the cost down to 22,000 kip per 600 grammes,” Ms Chanthamaly said.
Dao-Heuang Group General Manager Mr Sisouphonh Sihalath said that currently about 70 percent of the group's coffee is sold in the local market.
The Dao-Heuang Group employs 425 people and has three branches in Savannakhet, Champassak and Borikhamxay provinces.
“We also plan to list on the stock market, on the Lao Securities Exchange, in the near future as that will allow us to expand further in the future,” Mr Sisouphonh said.
The group was established in 1991 as a small import and export company and duty free shop. It is now one of the largest and most progressive companies in Laos. It is rapidly expanding and is known for developing high quality brands of international standard. It has business partnerships in Asia and Europe, in Belgium, Cambodia, Japan, South Korea, Spain, France, Chinese Taiwan, Thailand, Vietnam, Poland, Germany and Italy.
The company has coffee plantations of more than 250 hectares located in Chansavang village, Pakxong district, Champassak province. It also has numerous established and expanding businesses other than Dao coffee, including an air booking service, real estate rental, pharmaceutical products and fruit snack products.
vientiane times
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