Highlands Coffee gears up for IPO and expansion

The announcement detailing the coffee chain's ambitious plans coincided with the official launch of the company’s first 'Drive-Thru' store on July 1 in Ho Chi Minh City. David Thai, founder and CEO of Highlands Coffee, said, "This is not just a new store, to us, it’s a new chapter for the Vietnamese coffee industry. It’s a unique model, made for Vietnam, and tailored for the most modern needs of Vietnamese customers."

While drive-through coffee models are popular in many countries, Highlands Coffee has reimagined the format for Vietnam – where motorbikes dominate and coffee is deeply woven into everyday life.

Founded over 25 years ago with a belief in the value of Vietnamese coffee beans, Highlands Coffee has evolved with the country’s coffee culture. "We grew alongside the development of Vietnam’s modern coffee industry – from traditional sit-down cafés, to self-service models, and now Drive-Thru. All of it aimed at one goal – bringing the essence of Vietnamese coffee into the future," said Thai.

Before introducing its Drive-Thru model, Highlands Coffee had already built a strong presence with more than 900 stores across Vietnam and 53 outlets in the Philippines.

Now, 2025 is shaping up to be a pivotal year for the brand, as it accelerates domestic growth, sets its sights on international markets, and prepares for a potential public listing.

Despite its international ambitions, Highlands Coffee remains deeply committed to its Vietnamese roots.

"We can learn from the world, but we never lose our roots," Thai said. "Highlands will always be a Vietnamese brand, serving Vietnamese coffee to Vietnamese people and international friends alike."

Tim Seltzer, CFO of Highlands Coffee, stressed the importance of preserving authenticity during international expansion.

"Vietnamese speciality coffee is often added to menus as a token offering, without truly representing its culture or depth. For those unfamiliar, it can be misleading. That’s not the case with Highlands – our approach is rooted in authenticity and a deep respect for Vietnamese coffee traditions," Seltzer added.

This is why the company’s state-of-the-art roasting facility in Cai Mep, Ba Ria-Vung Tau, now part of Ho Chi Minh City, plays a central role in their long-term strategy.

Equipped with advanced technology and high capacity, the factory enables Highlands Coffee to strictly control the quality of its Robusta beans while scaling production of speciality coffee for both domestic and export markets.

Seltzer expressed concern that many international and local brands in other countries are "redefining" Vietnamese coffee.

"In Indonesia, you can walk into a café and find Vietnamese coffee on the menu," Seltzer noted. "But is it really the authentic Ca Phe Sua Da (iced milky coffee) we know? If we don’t move fast enough, others will define Vietnamese coffee in a way that misrepresents its heritage."

For Highlands, international expansion is not just a commercial opportunity, but also a cultural mission – to deliver Vietnamese products and a spirit of dedicated service to the world.

For the first time, Highlands Coffee has publicly revealed plans for an initial public offering (IPO), targeted within the next 18 to 24 months. The brand views this moment as a key phase of maturity and transformation.

"The IPO isn't the end. It's just a means to support the strategy, the growth, and the existing vision," said Seltzer.

The company’s IPO journey will be built on three strategic pillars: supply chain standardisation, customer experience innovation (such as Drive-Thru), and governance upgrades to meet global standards.

Despite its global aspirations, the company remains firm on its core coffee philosophy: 'Robusta-first'.

"We are achieving growth and success without comprising our values and staying true to Vietnamese coffee culture and heritage," Seltzer declared.

Drawing on his international experience in finance, Seltzer believes that true brand strength isn’t built through marketing campaigns, but through the people who bring it to life.

"You can’t achieve this without a team of dedicated 'Highlandsers' – from management and office staff to the café teams – who are genuinely passionate about the Highlands Coffee brand, about coffee, and about Vietnam," he said.

International demand for Vietnamese green coffee beans has surged in 2024, with total export revenue surpassing $2.4 billion from January to May.

The Algerian government issued its 2025 Finance Law in January, which, according to the Vietnam Trade Office in Algeria, includes a decision to waive or reduce coffee import taxes with the aim of lowering the cost of coffee products and supporting domestic consumers.

Highlands Coffee is refining its investment, export, and initial public offering strategies to navigate the changing coffee landscape in Vietnam and globally.