Zeal Group Sdn Bhd
- Zeal Group Sdn Bhd is an operator of a network of renowned cafes and restaurant.
- Established in 2015, we started off running our flagship café Macallum Connoisseurs Coffee Company, which is one of the largest café in Penang.
- Measuring up to 15,000 square feet of space fitted out with our Roastery, we can produce 500kg of our own specially roasted coffee beans per month. We currently supply roasted coffee beans to many businesses ranging from global conglomerates to hotels and supply to up to 15% of cafes in the Northern Region of West Malaysia.
- We are leading distributors for coffee-related brands and machinery such as Monin, Victoria Arduino, and Nuova Simonelli and run our own Macallum Connoisseur Coffee Academy, which is headed by our award-winning Baristas and coffee specialists.
- Since then, we have expanded to launch Yum Cha Tea Parlour (a restaurant dedicated to oriental cuisine), Loti by Macallum, [email protected] and GO! Coffee mobile application.
- With Coffee being our primary focus, we dedicate ourselves to producing outstanding brews and coffee roasts and becoming the most renowned artisanal coffee brand around Malaysia.
Lack of local artisanal coffee brand
Coffee is considered as an artisanal food like wine or craft beer rather than just a food commodity. The more notable coffee brands in the Malaysian market consist of international giants in the coffee industry like Starbucks and Coffee Bean or the local coffee offerings such as Nescafe or Old Town White Coffee. With the third wave coffee trend creating a rising demand in specialty coffee, there is no identifiable homegrown brand that showcases a premium option of artisanal Coffee.
Limited coffee options for office consumers
Based on a survey conducted by Alterra Coffee Roasters, 65% of office workers drink Coffee at work and an average of 2 cups of Coffee per day. However, the average office worker’s options are limited at their workplace, with their options being either instant Coffee provided in their pantries or coffee vending machines within their office buildings.
According to the National Coffee Drinking Trends (from the National Coffee Association of USA), in 2019, 61% of the Coffee consumed daily is classified as “gourmet”. This shows that consumer preferences are shifting towards the specialty coffee where the consumer values body, flavor, aroma, and acidity; however, there is a lack of that option within workplaces in Malaysia.
Creating a Malaysian artisanal coffee brand
With our passion and focus on producing artisanal Coffee, we can create the first-ever go-to artisanal coffee brand in Malaysia to reach the everyday consumer. Our carefully picked green beans, the monthly change in flavors, and quality roasted blends that are halal-certified have created customer loyalty and a recognized brand with many renowned businesses and cafes around Malaysia.
Macallum GO Kiosks
Our pop-up Macallum GO kiosks will be not only easily deployable but also highly scalable to become available nationwide. With barista training from our Macallum Connoisseur Coffee Academy to ensure the quality of the Coffee served, this will fulfill the increasing demand of consumer preferences towards the “gourmet coffee” within offices or other high-traffic locations where this option is not available.
Our Macallum GO kiosks will provide on-the-go coffee for consumers, where you can pick up a cup of coffee and a pastry and be on your way. With 3 of our Macallum GO Kiosks currently underway, we aim to set up as many as 40 kiosks nationwide by 2024, with 60 % of those kiosks run on a franchise model. With our easy set-up, we aim to empower local micro-entrepreneurs who are interested in operating a coffee business with our Macallum GO kiosks.
Digitization for Customer Attraction and Retention
GO! Coffee is our in-house coffee app available for all products and affiliate partners related to Macallum. With our tier-based subscriptions, buy now and redeem later models, we will ensure high customer acquisition and retention using our app. We aim to deploy our delivery services and build strong partnerships with our existing corporate clients through affiliate programs available within our app.
Macallum Coffee for the Everyday Consumer
With the expansion of our Roastery, we will be able to increase our output of roasted coffee beans and launch our Macallum Coffee into the commercial market where we would focus on placing our product in supermarkets to gourmet shops, increasing our brands' presence nationwide.
Unique Selling Points
Aromatic Coffee Blends and Roasts
We are leading the way in the specialty coffee movement in Malaysia. The business focuses on every step of the coffee process from sourcing of the beans, roasting techniques to brand awareness and packaging. From the single origin beans to our house blends our roastery produces, our monthly change of flavors ensures customer retention and excitement in the blends we create.
Academy with Award-Winning Baristas and Coffee Specialists
Our award-winning baristas provide training and one-to-one classes from the Macallum Connoisseurs Coffee Academy from the science and technicalities of brewing a coffee to the artistic side of latte art. This ensures that those who graduate from the academy will produce the consistency and quality of brewing a great cup of Coffee.
Synergistic Core Team
The complementing backgrounds in our experienced management team and our advisors, who are the co-founders of Dropee, will be instrumental in our future success. Our core team has remained the same since the beginning, ensuring that all our decisions are for the company's betterment.
Together we can guarantee quick implementation and strategic business planning towards reaching the organizational goals.
2 Coffee Locations, a Roastery and 2 Other F&B Outlets, All in Less than 5 Years.
In under 5 years, our team has built a coffee empire contributing to an average of 15,000 cups of Coffee a month. With our expertise in F&B, we have managed to establish our footing in the industry with two other profitable F&B outlets. We steadily supply over 500kg of our specially roasted coffee beans per month and are currently operating on over 120 % of our production capacity, proving the demand for our coffee blends. We also supply coffee beans to roughly around 15% of the cafes in the Northern Region of West Malaysia.
Great Customer Retention
Our client base for our B2B model has had steady growth over the 5 years and now we are servicing global brands such as Intel and Dell to renowned hotels to cafes such as Bricklin and The Hillside. With over 20,000 followers on social media, the Macallum coffee brand identity is strong within its community.
Consistent growth year-on-year
Since our group's establishment in 2015, our revenue has increased by a CAGR of 50% to roughly about RM4.2 Million in 2019.
We serve both customers in the B2B and the B2C models. We have established great relations for our B2B segment and serve global businesses to well-known hotels and cafes covering a wide range of loyal customers. Our coffee beans are supplied to roughly 15% of the cafes in the Northern Region of West Malaysia. Every month we serve an average of 15,000 cups of coffees to our customers in our flagship outlet, many of whom are repeated customers.
Diversified Revenue Streams Related to Coffee.
We are serving our customers an average of 15,000 cups of Coffee a month and from our flagship café, Macallum Connoisseurs. We cover the wholesale of our coffee beans to the B2B market to global brands, hotels, and other cafes, while our webstore and cafés cover the B2C customer segment. We distribute machines and coffee products for Monin, Nuova Simonelli, Brewista, and many other renowned brands. Our award-winning Baristas provide training and one-to-one classes from the Macallum Connoisseurs Coffee Academy for courses ranging from beginners to advance levels.
We have ventured into strategic partnerships and affiliated outlets such as The Warung to showcase our Coffee to a larger customer base, as well as Harley Davidson who has been a long-term exhibitor at our venue as an extra attraction.
We have since 2015 successfully launched three other F&B outlets being Yum Cha Tea Parlour (restaurant with oriental cuisine), and Bright Café, Macallum @ ADA, and also our own pastry brand Loti by Macallum.
Expansion of Our Café
With our refocus back on coffee, we aim to expand our Macallum Connoisseur café to a 2nd outlet by 2022/2023, together with an expansion of our Roastery. We aim to serve a larger customer segment in our B2B market first because of its ready demand before moving on directly to the everyday consumer. With our advisors being the co-founders of Dropee, logistics and timely deliveries would be our advantage to increase scalability and reach for our customer base.
Macallum – The Brand
With our expansion of the Roastery and our capacity for increased production of our coffee blends, we will also focus on branding and marketing our coffee to be available in supermarket and gourmet shop distribution channels. We will also continue to form further strategic partnerships with other outlets, increasing our brand strength and consistency on a national scale.
Grab A Cuppa with Macallum GO
By launching our Macallum GO kiosks nationwide for on-the-go Coffee, we aim to establish 40 Macallum Go Kiosks by 2024 and 60 % with a franchise model. We are currently in the midst of our application for our franchising license.
Starbucks and Old Town White Coffee are the leading brands in the Coffee outlets in Malaysia with 190 & 232 stores, respectively. The time has come for the next wave of artisanal coffee shops with the rising demand for specialty coffee. According to the National Coffee Drinking Trends (from the National Coffee Association of USA) in 2019, 61% of the Coffee consumed daily is classified as "gourmet", being the first time in the trend's 69 year report where it has surpassed the 60% level compared to the 9% in 1991. We strongly believe that the demand shift will continue to grow, and we believe we can be at the forefront of this trend.
Despite the negative effects of Covid there are business opportunities that have emerged.
Commercial real estate costs are at record lows
Cheaper rentals and more available spaces up for rentals recently can ensure that the time for expansion is now to lock in strategic locations with lower tenancy costs.
Operating costs have dropped
With the drop in the prices of products, it would be cheaper to acquire the necessary equipment, and set-up costs will be lower.
Increase interest in artisanal home-brewed Coffee
With the work from home or flexible working hour movement, there has been a rise in home coffee consumption. The increase of grinder sales and specialist coffee equipment shows that coffee drinkers are willing to spend significant amounts of money on improving the quality of Coffee they drink at home.
Macallum Coffee has a significant competitive edge compared to other artisanal brands such as Perks Coffee or Artisan Coffee currently in the market. With its strong and consistent branding together with its current brand awareness amongst the B2B and B2C markets, it will accelerate growth of our plans and ease of entry into the commercial market. Logistics and timely deliveries would be our advantage with our advisors from Dropee to increase scalability and reach for our customer base.
To become the most renowned local artisanal coffee brand available nationwide.
2022 : 2nd Macallum Connoisseur store established , 5 Macallum GO Kiosks, Expansion of our Roastery
2023 : 10 Macallum GO Kiosks, Launch of GOCOFFEE! App.
2024 : 20 Macallum GO Kiosks nationwide and Strategic partnerships, placement of Macallum Coffee in Supermarkets such as Jaya Grocer and BIG
2025 : 40 Macallum GO Kiosks nationwide with 60% on a Franchise model, exporting our Macallum Coffee to other SEA markets.
The financials that were reported here were the combination of our two entities, namely Zeal Group Sdn Bhd and The Millennials Trading. We had used The Millennials Trading pre-2021, which was an enterprise to operate the business, before having Zeal Group Sdn Bhd set up to formally have the shareholding and company set up formalised.
Moving forward we will be combining the entities under Zeal Group Sdn Bhd which will is the legal entity for this ECF round.
- No shares will be allotted or issued based on this document after six months from the closing of the offer period.
- This issue, offer or invitation for the offering is a proposal not requiring authorisation of the Securities Commission under section 212(8) of the CMSA 2007.
- This document has not been reviewed by the Securities Commission Malaysia. The Securities Commission does not recommend nor assumes responsibility for any information including any statement, opinion or report disclosed in relation to this fund raising exercise and makes no representation as to its accuracy or completeness. The Securities Commission expressly disclaims any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the information disclosed.
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