Kenyan coffee roaster Dormans has signed a supply partnership with Australia’s Coffee Club franchise, marking the entry of the global café chain into the East African market.
The Coffee Club, which operates over 450 outlets globally, has partnered with Luqman Petroleum to drive its expansion across Kenya, Uganda, and Tanzania. The first outlet has opened in Nairobi’s Lavington area.
“Luqman Petroleum is our partner for the Coffee Club for Africa – Kenya, Tanzania, and Uganda. It's a very solid strategic partnership since we are also supporting local businesses. We have partnered with Dormans Coffee in Kenya, who will be roasting our main recipe, which is coffee,” said Amanda Herholdt, managing director of The Coffee Club Middle East and Africa.
The franchise plans to open more than 10 outlets across Kenya in the next five years, targeting Nairobi as its regional hub.
In line with its market entry strategy, Coffee Club has opted to work with Dormans to ensure its outlets serve locally roasted Kenyan coffee to meet its global standards while supporting local value addition.
“We partnered to make sure that it's Kenyan coffee that is going to be served here, and we were able to replicate that taste experience. Kenya has long been known for exquisite coffees, and having global standards come together, we have partnered to create this consistent taste experience across the world,” said Rozy Rana, managing director of Dormans Coffee Ltd.
While Kenya ranks among the world’s top coffee exporters, domestic consumption is still low, with less than five percent of the total production. Most of the country’s coffee is exported as raw beans, which leaves local players sidelined from higher-value segments of the global coffee market.
The sector has also been weighed down by climate change, which causes production declines and unstable global prices.
However, industry players see café culture growth and international partnerships as a route to boosting local consumption and keeping more value within the country.