HÀ NỘI — Canada is one of the world's major coffee-consuming markets, yet Vietnamese coffee still accounts for only a modest share of the market in the North American country. 

Moving beyond raw coffee exports, tapping into franchise coffee chains offers Vietnamese businesses new opportunities to expand their market presence, enhance product value and gradually establish their own brands.

However, these opportunities also come with stringent requirements for quality, processing technology and the ability to meet local consumer preferences.

Since the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) took effect, Việt Nam's coffee exports to Canada have increased by around 300 per cent, from US$10 million to nearly $40 million.

Nevertheless, Vietnamese coffee's market share in Canada remains below 2 per cent, falling short of what might be expected given Việt Nam's position in the global coffee industry. This highlights the considerable room for growth in Canada, while underscoring the need for a change in approach. Vietnamese businesses must look beyond raw-material exports and focus more on distribution channels and direct consumer markets.

Canadian consumers are increasingly seeking high-quality coffee products with traceable origins, diverse flavour profiles and health-related benefits. This trend creates opportunities for Vietnamese exporters, particularly as Canada looks to diversify its supply sources and strengthen trade ties with partners beyond its traditional markets.

Speaking to a Vietnam News Agency (VNA) correspondent in Canada, President of the Coffee Association of Canada, Robert Carter, said the market was seeing growing demand for high-quality and premium coffee products.

According to Carter, Việt Nam has a range of innovative offerings, but the key is to help Canadian consumers recognise and understand the quality of Vietnamese coffee through certifications, supply-chain transparency and product innovation.

These factors could help Vietnamese coffee strengthen its competitiveness and build trust among local customers.

However, breaking into major franchise coffee chains is no easy task. Established chains typically have reliable supply networks, their own roasting and grinding processes, and stringent standards to ensure consistent quality across hundreds or even thousands of outlets.

In many cases, these chains import green coffee beans and roast and blend them in-house according to proprietary recipes to create distinctive brand flavours.

According to Đỗ Thúy Nga, an owner of a Second Cup franchise outlet in Toronto, major chains generally favour Arabica coffee, whereas Việt Nam's export strength lies in Robusta.

The two varieties differ in flavour, caffeine content and blending characteristics, making them suitable for different products and consumer preferences.

For Vietnamese businesses seeking to enter this market, ensuring the quality of raw materials is not enough. They must also assess their ability to compete on cost and maintain a consistent supply.

Another notable difference lies in Canadian coffee-drinking habits. Customers at many outlets tend to choose whole beans and have them ground only when needed to preserve the coffee's flavour.

By contrast, many Vietnamese coffee products are sold pre-ground and packaged. This difference in consumer preferences means businesses need to conduct thorough market research before deciding to introduce their products into distribution networks.

Beyond technical requirements, brand building remains a major challenge for Vietnamese coffee. Adam Pesce, a member of the Coffee Association of Canada, said Vietnamese businesses seeking to establish a foothold in the market needed to find a brand that would resonate with local consumers.

Canada has coffee chains of varying sizes and market segments, ranging from major brands to smaller operators such as Second Cup, Good Earth Coffee and Balzac's.

Partnering with suitable chains could help Vietnamese products gain recognition gradually before businesses move on to developing their own brands.

Another advantage of Vietnamese coffee lies in its cultural identity and the growing Vietnamese community in Canada. As Vietnamese cuisine gains popularity, products such as phin coffee, Vietnamese iced coffee with condensed milk, egg coffee and salted coffee are offering local consumers distinctive coffee experiences.

The growing number of Vietnamese-owned restaurants, phở eateries, bánh mì shops and coffee outlets has helped introduce Vietnamese coffee flavours to a wider Canadian audience.

Many diners are first discovering Vietnamese coffee while sampling Vietnamese cuisine, creating a natural promotional channel for the product.

Vietnamese-Canadian businesses can also serve as a bridge between domestic exporters and local distribution networks.

Their understanding of Canadian business practices, consumer preferences and regulatory requirements can help Vietnamese companies test products, adapt marketing strategies and identify suitable partners.

Trần Thu Quỳnh, trade counsellor at the Vietnamese Embassy in Canada, said the participation of Vietnamese-Canadian businesses in trade promotion activities highlighted the potential for cooperation between domestic exporters and companies with established business experience in Canada.

This would provide a foundation for promoting products, expanding distribution networks and gradually building the Vietnamese coffee brand in international markets.

Experience in Canada shows that entering franchise coffee chains depends on more than the ability to supply raw materials. Businesses must also meet specific requirements relating to quality, product standards, processing technology and marketing strategies.

Alongside its traditional strength in Robusta, Việt Nam could broaden its partnership opportunities by developing more products tailored to local preferences, including Arabica and distinctive Vietnamese coffee beverages. — VNS