Supermarket kiosks didn’t work for Vietnam’s Phuc Long. A new strategy is finally delivering for Masan Group

Ho Chi Minh City-based retail conglomerate Masan acquired an 84% controlling stake in Phuc Long in August 2022. Three-and-a-half years and a major operational pivot later, the partnership is finally fulfilling its potential

When Vietnamese retail conglomerate Masan Group acquired an initial 20% stake in Phuc Long in May 2021, its growth strategy for the coffee chain was centred on low-cost kiosks deployed across its WinMart supermarket empire.

Despite early success and ambitious goals – which at one point included a target of rolling out 10,000 Phuc Long kiosks – the venture struggled to cut through with customers or deliver on expected returns.

Masan’s decision to pull the plug on the project in the fourth quarter of 2023, a year after investing $100m to increase its stake in Phuc Long to 84%, highlighted just how stark the underperformance had been.

However, having taken time to review, reassess and reposition the coffee chain for growth, Masan is now reaping the rewards of Phuc Long’s resurgence.