Fore Coffee and Redseer Strategy Consultants brew a success story in Southeast Asia

Fore Coffee, a rapidly expanding semi-premium coffee chain in Southeast Asia, partnered with Redseer Strategy Consultants over the past three years to achieve sustainable growth in a highly competitive market and to work on crafting a compelling IPO narrative.

The collaboration with RedSeer Strategy Consulting encompassed in-depth consumer behavior analysis, strategic market expansion planning, and crucial commercial support in attracting capital. That expertise has been instrumental in establishing Fore Coffee as a prominent consumer brand across the region, which ultimately led to a successful initial public offering (IPO).

There is a lot of potential for growth in the Southeast Asian coffee market, fueled by growing disposable incomes and evolving consumer preferences. In Indonesia, the local coffee market is projected to grow by around 11% over the next five years to reach $12.6 billion. Fore Coffee is hoping to ride on this trend by expanding its market presence within the semi-premium coffee segment.

“The decision to proceed with the IPO amid global market volatility was ultimately the right one. It may seem counterintuitive, but it was made with strong conviction,” said Willson Cuaca, president commissioner of Fore Coffee.

“This IPO will serve as proof that Indonesia has startups that are well-managed, profitable, and governed with integrity – where investors are not solely focused on valuation or exit strategies, but on sustainable growth. Fore Coffee’s mission going forward is to make Indonesia proud.”

Fore Coffee’s growth

Fore Coffee, founded in 2018, has quickly built a brand for itself as a tech-enabled specialty coffee brand with a notable digital footprint. Demonstrating remarkable expansion, the company operates 217 outlets across Indonesia and Singapore. Ambitious plans are in place to further grow that presence with 140 new outlets over the next two years, showing the startup is committed to strong regional growth.

Redseer Strategy Consultants helped Fore Coffee understand its business better and move more quickly in the market. The consultants carried out detailed studies of how coffee drinkers in Southeast Asia are changing their habits and what they prefer. This gave Fore Coffee a better understanding of its customers.

The research also identified fast-growing smaller markets within Indonesia and looked at possible opportunities in other APAC countries. Redseer Strategy Consultants gauged how well Fore Coffee was doing against its competitors, both large and small. This helped Fore Coffee maintain a competitive advantage.

The collaboration with the consulting firm, which is headquartered in India and has offices across Asia and the Middle East, produced results: Fore Coffee successfully increased its number of stores to over 230 across Southeast Asia. The brand also made its offerings more appealing to its target customers in a market where competition is strong and constantly changing.

The IPO had far more demand than available shares, with over 200 times the number of orders. This indicates strong belief from investors in Fore Coffee’s business and its future. The IPO raised about 353.44 billion Rupiah (around $22 million).

Fore Coffee’s business approach focuses on providing good quality coffee at reasonable prices. It leverages innovative technology to carve out a strong online presence and make its operations more efficient. The company prioritizes buying high-quality coffee beans locally in Indonesia. Being environmentally responsible is also important part of its business model, as shown by its use of recycled materials in its stores.

“The coffee industry in Southeast Asia is transitioning towards premiumization and lifestyle integration,” said Roshan Behera, partner at Redseer Strategy Consultants in Singapore. “Brands that leverage strategic insights and adapt to consumer trends are poised for significant growth. Fore Coffee’s journey exemplifies how data-driven strategies and market responsiveness can lead to sustained success in a dynamic market.​”