James Prananto from Kopi Kenangan talks about the journey of the brand, its unicorn status, and plans for the future.
Indonesia is the world’s fourth-largest producer of coffee – after Brazil, Vietnam, and Colombia – and is well-known for its coffee culture. Since coffee is farmed throughout the whole country, it’s safe to say that just about every street corner in the archipelago has a little coffee shop selling anything from traditional coffee drinks to instant coffee. There’s also no shortage of modern, branded coffee outlets spread across the nation. However, despite the fact that major players still dominate the coffee chain industry, more and more independent enterprises are opening in the country as well.
One of them is none other than Kopi Kenangan – or Coffee Memories, as noted on its website – which was founded by Edward Tirtanata, James Prananto, and Cynthia Chaerunissa. The idea of Kopi Kenangan began with a shared desire to spread passion for Indonesian coffee as a local brand and eventually to the rest of the world. With over 750 stores across 45 cities in Indonesia and more than 5.5 million cups of coffee sold per month, the brand that started its operation back in 2017 is arguably one of the fastest-growing grab-and-go coffee chains in Indonesia.
“Back in 2017, we saw a huge gap in the Indonesian coffee retail market. There were only the big international coffee chains that sell coffee for IDR 40,000 to IDR 50,000 a cup or your next best option was instant coffee, which might not be good in terms of quality. There were no coffee chains that provide good quality coffee at affordable prices,” recounts James Prananto, Co-Founder and Chief Business Development Officer of Kopi Kenangan. “Setting off on this finding, we tried to penetrate the gap through Kopi Kenangan with our disruptive business model. We created a grab-and-go coffee model with a space-conscious concept which lowered our operational costs and capital expenditure, thereby allowing us to scale quickly. We also maintained quality by using top-of-the-line coffee machines and high-quality raw materials.”
Prananto believes that when it comes to coffee culture in Indonesia, it has become a nationwide phenomenon where the beverage is enjoyed not only during casual or business meetings but also daily for leisure. On this note, one thing that gives the brand an edge over other coffee concepts is that since the beginning of its journey, the goal has always been to fill the Indonesian coffee market gap.
“We were able to be one of the first coffee chains to provide high-quality coffee at affordable prices, which speaks to the masses. On top of that, as we are growing into 750 stores, we are still able to maintain the consistency in our products and services which is crucial,” Prananto indicates.
“With the immense growth of Kopi Kenangan, we continue to evolve the company by increasing our product and brand portfolio, leveraging the use of technology, and uproar digitalization. The innovation that we consistently carried out plays a vital role in the development and growth of our company,” he elaborates. “Furthermore, the unending support from our investors, employees, and community drives the spirit of Kopi Kenangan’s success and we are dedicated to keepn innovating and developing the best experience for every customer when engaging with our brands.”
Speaking about the brand’s clientele, James notes that Kopi Kenangan’s customer profile basically covers everyone. “Kopi Kenangan’s consumers are me, you, and everyone. Whether they are entering their teenage phase, adulthood, professionals, or business executives, everyone can become Kopi Kenangan’s customers. It all comes down to their beverage options; whether they love aromatic coffee drinks, refreshing non-coffee options, or even milk tea boba stans, there’s always an option for everyone,” he points out.
Kopi Kenangan has expanded its businesses beyond Jakarta into other big cities across Indonesia, with the latest opening taking place in Bali. Amazingly, the Indonesian market responded very well to the products. “According to a study from Kantar – a data analytics and brand consulting company – in 2021, Kopi Kenangan managed to achieve the top position for brand equity index with the highest growth in the coffee industry in the last ten years,” Prananto elaborates. “In addition, our optimized version of the Kopi Kenangan app has succeeded in attracting more than two million users in 2021. This app has helped us greatly in understanding our consumers’ needs, so we can deliver a tailored experience according to their needs.”
He continues: “Our latest launch in Bali also gained wild traction from coffee enthusiasts, as we were able to sell more than 1,100 cups on the day we launched Kopi Kenangan in Bali..”
Unsurprisingly, Kopi Kenangan also took advantage leveraged social media in order to reach more and more people with the products. “Social media has become a part of our lives, and I believe all of us here own at least one social media account, right? The impact of social media in delivering information and promoting businesses must come to our attention. Hence, with the rise of social media and Key Opinion Leaders (KOL) distributed across the platforms, we are trying to build meaningful relationships and collaboration with these opinion leaders to expand our reach even further periodically,” says Prananto.
“On the contrary, our work at Kenangan Brands will become more extensive than ever as we hold greater responsibility and we can’t wait to see how we can contribute to the country moving forward”
One of the things that blew up on social media was when Kopi Kenangan launched a store equipped with solar panels for World Environment Day 2022. In short, the launch of the new Kopi Kenangan RC Veteran outlet represented the brand’s collaboration with Grab and solar energy company SUNterra to spearhead a more environmentally friendly production process. “All of the coffee served in this outlet is powered by the sun. We hope that this innovation can motivate us and inspire other industry players to maximize the use of alternative energy, one of which is solar energy, for a more environmentally friendly industry,” he explains. “We don’t have immediate plans to implement this concept, but without a doubt, we are working on this as part of our commitments to the environment.”
Aside from that, another achievement that stole the spotlight on social media was when Kopi Kenangan hit unicorn status when the brand raised USD96 million in a Series C funding round that valued the company at more than USD 1 billion. “All of this could not have been achieved without the hard work of everyone at the company. To share a sneak peek with you, this year is a pivotal year for us as we are working to increase our store expansion rate, penetrate the international market and enter the FMCG industry,” he shares.
Prananto also touches on the opportunities that he sees for Kenangan brands: “For the new brands, now we have a bread brand named Cerita Roti, a fried chicken brand named Chigo, and a cookie brand named Kenangan Manis. Recently, we also launched a ready-to-drink (RTD) product called Kopi Kenangan Hanya Untukmu which marks the commencement of our journey in the FMCG industry. This particular product was inspired by our one-litre bottled coffee project which has become one of the most beloved products among consumers. We hope that by bringing out RTD products to the FMCG industry, Kenangan Brands can serve better and expand portfolios through our diverse products to the customer.”
Most importantly, when asked what a Unicorn status means to him personally, Prananto reveals that the status itself doesn’t mean the end of the brand’s work. “On the contrary, our work at Kenangan Brands will become more extensive than ever as we hold greater responsibility and we can’t wait to see how we can contribute to the country moving forward,” he describes. “I would also like to thank our investors, employees, communities, and consumers that show their unyielding support to Kenangan Brands. This is a testament to our continued focus on creating more impact on the nation while bringing the best brand experience to our beloved consumers.”
To that end, Prananto once again reiterates the brand’s plans to expand outside of Indonesia and aims for global expansion. “We are planning to launch Kopi Kenangan in the international market within this year. And yes, this will be our first step towards global expansion,” he shares further. “Our mission is to showcase that Indonesia has a reputable high-quality coffee brand, and that we’re not only limited to exporting coffee beans as a commodity. We hope that Kopi Kenangan can be appreciated worldwide for its high quality and its affordable price point.”
On a separate occasion, Kopi Kenangan’s Co-Founder and CEO, Edward Tirtanata, said in a press statement that its mission now is to be the most-loved consumer brand in Southeast Asia and, as part of its five-year vision, Kopi Kenangan remains committed to rapidly expanding its footprint to thousands of stores across Southeast Asia and broadening its offerings. In this regard, Prananto says that they are planning to do that by expanding the brand to international markets, and hopefully, the brand’s presence can be felt and recognized by international consumers.
Ultimately, when asked about his biggest hope for Kenangan brands in the future, Prananto replies, without hesitation: “We hope Kenangan Brands will be around for a long time. We’re not only talking five or ten years in the future but much more. To become an established conglomerate with global presence and many successful brands under its umbrella.”