Evolving with integrity: How Hubert Young successfully localised UCC for the PH market

UCC is renowned globally for its premium coffee and unique brewing techniques, but despite its popularity in Japan, entering a new market poses several challenges for an international brand. 

Hubert Young, CEO of Mugen Group, parent company of UCC Philippines, saw an opportunity to launch UCC in a way that would resonate with the Filipino consumer while preserving its core ethos.

UCC dates back to 1933 when founder Kadao Wes introduced coffee – then considered a ‘rich and mysterious beverage’ and relatively unknown in Japan – in the city of Kobe and slowly built its popularity in the market. While coffee was widely consumed at the time in Europe and North America, Wes is considered the ‘father of coffee culture’ in Japan.

Daring to be different

When UCC entered the Philippine market in 2000, Young said this would not be “just another coffee shop”; he made sure it was a deliberate attempt to introduce something new and distinct.

“Everybody was going espresso at the time, but I wanted to do something different,” Young shared. 

The company offered several brewing techniques beyond espressos, such as siphon brewing, pour-over, cold brew, and sumiyaki coffee – a coal roasting process using hardwood. This approach not only preserved UCC’s distinct brewing styles but also introduced Filipinos to a unique coffee experience that stood out.

Young explained his strategy wasn’t just about replicating a Japanese brand; it was about merging its core values with local tastes.

“The best way to get people to try your coffee is to prepare it with food,” he explained.

“Most cafes offer the usual bread, cookies, and pastries—no rice meals. Filipinos love breakfast: Tapsilog, tocilog, longsilog. What we did was pair them with coffee. We offered free UCC coffee with every breakfast order.”

In addition to opening cafes that cater to the middle to upper class, the company also thought of offering various coffee products to get a slice of other income brackets from the lower to middle class.

“Filipinos love instant, and to me, it was also a way to get the lower income bracket of people who are lesser to learn or to try, use the affordable version, but not the same as the ones in our cafe,” said Young.

The CEO said the coffee shop serves as a venue to market the UCC brand and make it familiar to the public. 

Building the brand

Franchising played a crucial role in UCC’s expansion in the Philippines, but Young took a cautious approach. 

“We are very picky with franchises,” he explained. “I want the franchisee to be compassionate and treat the brand personally.” 

This careful selection process, said Young, ensured that each store reflected UCC’s values, providing consistency across locations, even as the brand expanded into regions like Davao, Cebu, and Cavite.

Beyond the cafes, UCC’s influence extends into coffee production, supplying customised blends to major fast-food chains and convenience stores across the Philippines (although the brand names cannot be disclosed). 

“We customise coffee products for each individual, company, or brand,” shared Young.  “We even do airlines and hotels. The biggest convenience store in the Philippines, we customise coffee for them. They have their own blend for a certain price point.”

He added that UCC Philippines can consistently make coffee taste a certain way at a specific price because it has manufacturing locations that can produce in volume. 

However, despite this diversification, Young emphasises that the company’s focus remains on quality and consistency, tailoring each blend to meet specific tastes.

A strategy for growth

Hubert Young’s strategy to localising UCC has allowed the brand to thrive in the Philippines while remaining true to its roots.

“For the past ten years, we’ve been growing not just as a coffee shop brand but also as a coffee factory, said Young. “We’ve been operating as a coffee shop since 2000, and in 2014, we established our coffee factory in the Philippines.”

He explained that UCC Philippines is part of a more extensive network, collaborating with affiliates across the Asia Pacific, including UCC Thailand, Indonesia, Taiwan, Hong Kong, and China. “

“We are the coffee factory for the whole Philippines and also serve the Asia Pacific, depending on the need. We even export our coffee to other countries.”

To meet the increasing demand, UCC Philippines is expanding its operations with a new, state-of-the-art factory in Laguna. 

“It’s a significant investment and a huge project, but it’s necessary to support our continued growth,” Young concluded. “UCC is not just a cafe that most all think it is.”