Within the specialty coffee space, Vietnamese coffee is typically dismissed as cheaper and low quality, according to Sahra Nguyen, founder and CEO of Nguyen Coffee Supply. Which is why since launching her dry coffee brand in 2018, she has focused on exposing the coffee industry to the potential of Vietnam-sourced robusta beans.
Now looking to bring that awareness of premium robusta beans to a broader audience, Nguyen Coffee is launching its first RTD product, a black 100% robusta cold brew packaged in 7.5 oz. cans.
“So much of the Vietnamese coffee market has been funneled into the instant coffee [category]; however, that’s a systemic social contract that can be changed,” Nguyen said. “To my knowledge, through all my research, [a 100% Robusta cold brew] does not exist.”
Formulating the product took over a year, she added, noting that the complexity of launching a cold brew beverage proved to be more difficult than packaged coffee beans. The cans will initially be sold through the brand’s website before exploring a launch in natural and specialty brick and mortar retailers, as well as food service partners, and carry a retail price of $32 per 6-pack.
“Trying to scale our RTD’s through DTC is going to be very difficult because of shipping costs and freight costs,” she said. “It doesn’t quite work… it doesn’t scale very well. And so for us, we are really hoping, and looking towards unlocking our [brick and mortar] retail through the RTDs.”
Nguyen Coffee closed a $2.6 million funding round in March to support the line expansion. Investors in the round included Hyphen Capital, GFR Fund, Gutter Capital and Gaingels alongside individual investors Charles Huang, the co-founder of Guitar Hero; Carol Lim, the co-founder of Opening Ceremony; and Sheila Lirio Marcelo, the founder of Care.com.
Nguyen explained that while her investor pool does not have much experience in food and beverage, many are well versed in building digitally native brands and passionate consumer communities.
In order to have stronger control over its supply chain and production process, Nguyen Coffee imports its beans via direct trade and then roasts them in its Brooklyn, New York facility. The cold-brew is then made with a co-packer.
Nguyen is also pushing back on the perception that Vietnamese coffee is a single variety of an indulgent drink, noting that many consumers are only familiar with the beverage in the form of a sugary brew made with condensed milk. By launching solely with a black RTD, she hopes to draw more attention to the core coffee flavor.
“Vietnamese coffee at its core is about the variety and the origin,” she emphasized.
To further drive awareness of the versatility of this coffee variety, more options will be coming later this year, Nguyen added, as the company has two more flavors set to launch in the near future. With scale, the company also hopes to be able to reduce the price.
The RTD launch comes as the brand makes its first steps into brick-and-mortar with its core dry coffee portfolio. Nguyen Coffee launched in 14 New York City area Whole Foods stores earlier this year, marking what she said is the retailer’s first dry Robusta coffee. The beans are also available online at Fresh Direct, Gorillas and Weee!