Kluang Coffee Powder Factory Eyes RM31.5 Mln Revenue In 2025

By Danni Haizal Danial Donald

KOTA TINGGI, Feb 27 (Bernama) -- Local coffee powder manufacturer Kluang Coffee Powder Factory Sdn Bhd aims to achieve RM31.5 million revenue in 2025, up five per cent from RM30 million last year, driven by strong demand from customers in both physical and online marketplaces.

General manager and third-generation owner Goh Yong Kian, 36, said currently, the company supplies its coffee powder to more than 100 coffee shops in Malaysia and Singapore, with its main coffee brand, Kluang Coffee Cap Television available at commercial stores and supermarkets in Malaysia.

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Yong Kian said his grandfather Goh Tong Tor established the company in 1966 and emerged as one of the household brands in Kluang.

"Our factory produces more than 1,500 tonnes of coffee powder annually, and we mainly source the beans from Brazil, Indonesia and Vietnam.

"Each year, we export 10 containers of coffee powder to ASEAN countries such as Singapore and Brunei," he told Bernama at an exhibition held in conjunction with the 31st ASEAN Economic Ministers (AEM) Retreat in Desaru on Wednesday.

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To meet the increasing demand and higher sales target, Yong Kian said the company plans to open another factory next to the current one in Kluang in 2026.

“We have bought one acre (0.4 hectare) and will build a new factory, targeted to be open next year," he said, adding that the new factory is likely to be fully automated, reducing workforce and labour costs while increasing its profit margins.

On the coffee industry’s outlook, Yong Kian foresees the industry in Malaysia growing rapidly due to rising demand.

"I think there is a big market for the coffee industry as demand increases significantly year by year.

"It is a great opportunity for coffee factories in the future. As the market grows, many new coffee manufacturers will emerge, making the market more competitive and also improving the quality of coffee in the country," he said.

Nonetheless, Yong Kian was concerned about the increasing coffee price lately due to supply shortages in major suppliers like Brazil and Vietnam.

"This is a big challenge for us as we are forced to increase prices for our end users and customers. 

"However, we can't raise prices too much, as customers may not accept it. At the moment, what we can do is absorb the cost, which means our margins may be lower than last year," he said.

Yong Kian is hopeful that the supply will return to normal by the end of this year or next year, which will help lower coffee bean prices.

"This way, we can maintain our margins without needing to raise prices for our customers," he said.

News reported recently that arabica coffee prices shot to record highs of over US$3.60 per pound due to supply shortages in Brazil, the world's largest coffee bean producer.

The AEM Retreat, scheduled for Feb 28, will be chaired by the Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz.

Related meetings will be held from Feb 22 to 27 in conjunction with Malaysia’s ASEAN chairmanship in 2025.

Among Malaysia’s key agendas as ASEAN chair are enhancing intra-ASEAN trade and investment as well as expanding economic cooperation and partnerships beyond the ASEAN region.

-- BERNAMA