HVA Group, through its subsidiary, HVA Foods PLC is gearing to launch franchise cafes in three countries next year, after they launch the first of its kind – Heladiv Tea Club cafe - in Colombo on Tuesday, officials said.
“Heladiv is an international tea brand and by 2012 we intend to expand our Heladiv Tea Club cafe franchise to at least three countries,” Rohan Fernando, Chairman HVA told the Business Times. He said that the company is targeting India (Bangalore), Australia (either Sydney or Melbourne) and Italy as the locations mid next year.
On Tuesday the first Heladiv Tea Club which will feature a tea salon, a dessert bar and a boutique will be commissioned in its premises at the newly built shopping complex at the former Dutch Hospital in Fort.
“The first year growth will be slow in these cafes as we’ll be fine-tuning the franchising,” Mr. Fernando added, noting that to set up each unit of these cafes costs between US$ 100,000 to US$ 200,000. He added that the return on investment in the cafes will take some two years.
Heladiv Tea Club also plans to retail Sri Lankan coffee as well. “We’re nostalgic about Sri Lankan coffee and will retail it through Heladiv Tea Club cafés,” Mr. Fernando added.
He said that Heladiv has also developed a machine to brew tea similar to a coffee percolator. This machine is manufactured in Taiwan.
In 2009, the company established a chain of tea cafes with a joint venture partnership with the Beijing Pure Ceylon Tea Company in China. “These cafes are designed to provide the ultimate personal experience in a tea boutique with exquisite interiors and VIP tea rooms offering freshly brewed tea for sampling prior to purchasing," Mr. Fernando said, adding that as at now, 22 franchise cafes have been set up in different districts in China, promoting Pure Ceylon Tea to the Chinese.
Mr. Fernando added that after Heladiv’s initial public offering in January this year, the company has been carrying out foreign marketing campaigns which are now starting to show results. He said the company intends to launch a dedicated website for online shopping as well as market this latest venture through social media networks.
He noted that from October this year the company has been doing well owing to the expansion of their value added sector. |
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