Ho Chi Minh Metropolis-based retail conglomerate Masan acquired an 84% controlling stake in Phuc Lengthy in August 2022. Three-and-a-half years and a significant operational pivot later, the partnership is lastly fulfilling its potential
When Vietnamese retail conglomerate Masan Group acquired an preliminary 20% stake in Phuc Lengthy in Could 2021, its development technique for the espresso chain was centred on low-cost kiosks deployed throughout its WinMart grocery store empire.
Regardless of early success and impressive targets – which at one level included a goal of rolling out 10,000 Phuc Lengthy kiosks – the enterprise struggled to chop by with clients or ship on anticipated returns.
Masan’s choice to pull the plug on the mission within the fourth quarter of 2023, a yr after investing $100m to extend its stake in Phuc Lengthy to 84%, highlighted simply how stark the underperformance had been.
Nonetheless, having taken time to evaluate, reassess and reposition the espresso chain for development, Masan is now reaping the rewards of Phuc Lengthy’s resurgence.
