Founded in April 2000, BreadTalk entered the normal bakery market in Singapore with a novel positioning: it was marketed as a professionally managed business; its stores were positioned in major shopping malls in central Singapore; its kitchens were open so customers could see how the bread was made; and its products were a fusion of traditional baked goods with a contemporary twist.
BreadTalk prided itself on a culture of “creative differentiation” – and sought to stay “fresh” by continuously changing and adapting to consumer demand, and “relevant” by offering local and tailored products with something for everybody.
To that end, the corporate introduced a brand new range of products every six months in keeping with seasonal trends, social events and festivals. For example, BreadTalk outlets sold panda-shaped products to lift funds for Sichuan earthquake victims, and rocket-shaped products to rejoice China’s first astronaut in space.
With a longtime brand within the country – 20 successful outlets in only two years – BreadTalk began to contemplate expanding its operations to other countries within the region. In its first yr, the corporate received over 1,000 franchise inquiries from corporations in Singapore, in addition to other Southeast Asian countries.
Currently, the BreadTalk Group operates in 17 countries in Asia and the Middle East, managing almost 1,000 stores under brands reminiscent of BreadTalk, Toast Box, Food Republic, Din Tai Fung and Song Fa Bak Kut Teh.
BreadTalk Group will form a S$3 million three way partnership with Japan’s largest rice wholesaler Shinmei Corp., the Straits Times reported. The 115-year-old Kobe-based company, which can be Japan’s largest rice exporter with a 30 percent stake, owns the Genki Sushi chain of conveyor-belt sushi restaurants.
The three way partnership, generally known as BTG-Shinmei Venture, shall be registered in Singapore and start operations next month. BreadTalk Group holds a 66 percent stake and Shinmei the remaining 34 percent, the 2 corporations announced on Dec. 22, 2017.
This is BreadTalk Group’s first partnership with a retailer, coming a yr after the 2 corporations began talks. Through the enterprise, the group is eyeing cost savings for patrons, entry into recent markets reminiscent of the United States, Europe and Japan, and a brand new revenue stream from ingredient sales.
Shinmei owns quite a few businesses operating within the rice and processed food, seafood, fruit and vegetable industries, in addition to food logistics corporations.
BTG-Shinmei Venture will supply the products to BreadTalk Group, which already uses top-quality Japanese ingredients, including Shinmei-brand rice, but hopes to introduce more products that use high-quality produce grown by farmers in rural Japan. These include Hokkaido, where Shinmei has a big footprint.
In addition to Shinmei’s strong presence in Japan, the corporate also hopes to leverage that presence to expand into the U.S. market, where the Japanese company opened a producing facility in Sacramento, California, in 2015.
Source: The Straits Times | Singapore Business Review | International Enterprise Singapore
