PRWEEK: Starbucks tasks H&K Thailand

The appointment will initially be on a project basis, but may be extended depending on the development of the new relationship, according to a Starbucks spokeswoman.

Effective immediately, the brief primarily involves brand enhancement, media relations and communications programmes for planned new beverages, including the coffee chain's signature Frappucino ice-blended coffee and tea drink to be launched in Thai outlets this summer.

"The market is growing, and more people are drinking more coffee. But there is also more competition and plans for further stores," said the spokeswoman, adding that building customer loyalty was a priority.

Thailand's premium coffee market - estimated to be worth between 500 million and 700 million baht (US$11.6 million) a year - is led by Starbucks, that reportedly holds a 40 per cent share of this.Other overseas chains gaining critical mass include Au Bon Pain, Gloria Jeans and UCC.

However locally-owned competitors including Coffee World - which currently holds a 25 per cent share of the market - and franchise operations such as Black Canyon and Banrai Cafe, have been aggressively expanding, and are becoming increasingly vocal about taking a bigger share of Thailand's growing coffee market.

Expansion in Thailand's booming premium coffee market is expected to reach 20 per cent this year.