Starbucks Vietnam: Why the US chain cannot crack a coffee-loving nation

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Starbucks Vietnam: Why the US chain cannot crack a coffee-loving nation
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The verdict is clear: Vietnamese people love coffee, but they don’t really seem to like Starbucks.

Tu Anh Le loves going to the Starbucks at the buzzing heart of Vietnam's Ho Chi Minh City."Pictures at Starbucks make my Instagram look nicer," says Tu Anh Le, who thinks the cafe is "luxurious", like a five-star hotel. "I get a lot of likes and nice comments saying I look trendy."

"Starbucks' presence remains limited due to [the] consumer preference for local coffee flavours," says Nathanael Lim, an analyst at Euromonitor International. And two, the Java chip frappucinos and pumpkin spiced lattes that have won elsewhere just don't seem to cut it here. To make Vietnamese coffee, a tin filter called a "phin" is placed over a glass, and hot water is then poured on the coffee grounds. It takes about 10 minutes for the decoction to percolate into the glass below. The drink can be served hot or cold, and with or without condensed milk, a staple in Vietnamese coffee.

But 97% of the coffee Vietnam consumes every year - about 200,000 tonnes, or 2kg per person - is of the Robusta variety. Today, some local Vietnamese brands mix traditional Robusta coffee with egg yolk, yogurt and even fruit to woo new customers. A popular local chain Cong Coffee says its most loved brew is an indulgent cuppa coconut coffee, which blends coconut cream, condensed milk and ice.

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