Kopi Kenangan’s Evolution from A Single Brew to Becoming a Unicorn: A Story of Coffee and Creativity

Kopi Kenangan has become a well-known brand in Indonesia.

What started with a single product in Indonesia in 2017 has now grown into a unicorn company with a range of products including ready-to-drink beverages, sweet bread, cookies, and fried chicken.

The F&B retail unicorn faced challenges scaling the business during the COVID-19 pandemic, leading to postponement of expansion plans. However, the company made strategic moves such as opening grab-and-go stores at petrol stations. Kopi Kenangan is now expanding to Malaysia and Singapore with plans to enter more markets following a successful fundraising of US$333 million from investors like B Capital Group, Horizons Ventures, Kunlun, and Falcon Edge Capital.

e27 spoke with Rahmat Budiardjo, CFO of Kenangan Brands, to understand how the company’s packaging strategies helped them navigate the pandemic crisis and establish a strong brand.

Edited excerpts:

How challenging was it to build the Kopi Kenangan brand? What unique strategies did you use to make it a well-recognized brand?

There were two key strategies:

I- Incorporating engaging and relatable branding using themes like love, ex-relationships, and lingering feelings, which resonated with consumers and attracted new customers.

II- Offering high-quality products with unique taste, strategic positioning, and competitive pricing:

1. We introduced coffee milk with gula aren, a unique concept in the market.
2. We utilized the same premium quality coffee machines as Starbucks.
3. We sourced premium ingredients like Greenfields milk and Monin syrups, similar to Starbucks.
4. We priced our products affordably, around half the price of similar products at Starbucks.

How many products does Kenangan Brands currently offer? Are there plans to introduce more F&B products in the future?

Kenangan Brands currently offers a variety of brands:

• Kopi Kenangan: The original brand with a grab-and-go store concept focusing on premium quality coffee at an affordable price.
• Cerita Roti & Kenangan Manis: Selection of delicious bread and cookies inspired by local flavors and international tastes.
• Chigo x Flip: Merged brand offering fried chicken served with rice and/or fries topped with sambal.
• Kopi Kenangan Hanya Untukmu: Ready-to-drink coffee brand packaged in PET bottles for modern trade and general trade nationwide in Indonesia.

How important is packaging in the widespread acceptance of a product? What was the design thought process behind your packaging?

For our ready-to-drink coffee brand, Kopi Kenangan Hanya Untukmu, packaging plays a crucial role in attracting consumers and differentiating our products from competitors. We design our packaging with a distinctive white background to stand out on shelves dominated by darker colors. We believe that once consumers try our product, they will become repeat customers.

For the Kopi Kenangan brand, packaging plays a key role in reinforcing brand identity and creating brand loyalty among consumers.

Introducing grab-and-go outlets at petrol stations was a successful strategy during the pandemic. How well did this strategy perform for the company? Are you continuing to sell via petrol stations?

Opening stores at petrol stations was a successful strategy during the pandemic:

1. Productivity in gas station stores increased by 30-40% compared to pre-pandemic levels.
2. Gas station outlets generated 80-100% higher productivity during the pandemic compared to other formats.
3. Due to lower CAPEX investment, the strategy resulted in a shorter payback period.

Are there plans to leverage technologies like AI to enhance customer experience and operational efficiency?

As we continue to grow, we are exploring the use of AI to improve operations, particularly in selecting locations for new store openings.

What are the long-term plans for Kenangan Brands?

Kenangan Brands aims to become a leading global coffee retailer, expanding across Southeast Asia and beyond in the future.

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Image credit: Kopi Kenangan

This article was first published on August 15, 2023

The post From a single brew to unicorn: Kopi Kenangan’s journey of coffee and creativity appeared first on e27.