Growth Customer Experience Productivity Business IQ Trends Success Stories Tech Solutions Subscribe Tech Enquiry
Tiffany Loh
Smarter Writer

Tiffany Loh is the Smarter Business™ & News and Digital Editor, with varied writing experience always looking for a unique story

Tiffany Loh
Smarter Writer

Tiffany Loh is the Smarter Business™ & News and Digital Editor, with varied writing experience always looking for a unique story

Here's how since launching in 2005, Bondi Chai has become one of the most awarded chai brands in Australia.

Co-owners of Bondi Chai, Martin Buggy and Melissa Edyvean run the whole operation from their Port Stephens home in NSW.

The NSW Micro Business of The Year in the 2014 Telstra Business Awards, contracts some of the best companies around Queensland and NSW to produce its powdered pre-mix and sell to a large network of national and international distributors and, recently, to Australian supermarkets.

We chat to Martin about their vision for the brand, the move to supermarkets, and why they’re still passionate after 14 years in the business.

couple at table drinking tea

Tiffany Loh & Jenna Hanson: Why did you set up Bondi Chai?

Martin Buggy: We wanted to escape the “hours for dollars” scenario typical of consultancy work. Over several years, we had mapped out in some detail our “ideal lifestyle” which included lots of travel, living where we chose to live, working together and from home, and funding our lifestyle from income that didn’t rely on our full-time input.

We felt that we needed a business with low-risk/low-cost entry that was based on a product or service that met a deep-seated need across a wide demographic, had strong competitive advantages and with an uncomplicated, systematic supply chain.

After three years’ experience as the Oceania agent for a US brand at a time when chai latte was virtually unheard of in Australia, we began to see that chai latte could tick all the boxes.

TL & JH: Why did you decide to go into supermarkets instead of staying boutique?

Martin: We’ve never seen Bondi Chai as a boutique product. Indeed, from the outset we wanted Bondi Chai to become a product with strong national and international presence, which is one of the key reasons we chose the globally famous name, Bondi.

We began our ‘supermarket project’ after five years of concentrating almost entirely on food service, and in the days immediately before our launch into supermarkets someone was ordering a Bondi Chai Latte in a café somewhere in Australia every four seconds. 

Having established a strong food service base, increased brand awareness became our next focus. We knew that creating increased brand awareness would create increased demand for home-consumption of our product, so making retail product readily available was important and supermarkets offered the best solution. With 20 million customers a week, presence in supermarkets also significantly added to our brand awareness efforts.

We had then, and still have, a philosophy of working with anyone who wants to work with us.

- Martin Buggy, Bondi Chai

TL & JH: How has this move changed your business? 

Martin: Firstly, it made us much more worldly-wise in the food industry. We’ve learned a lot – about the machinery of the supermarket industry, about those who drive it, and about supermarket shoppers.

Secondly, giving consumers easy access to our product as we began to lift its profile gave us the platform on which to build brand awareness. A Danish would-be distributor contacted us to negotiate distribution in northern Europe only after ringing a friend in Australia to ask what she knew about Bondi Chai. The response she got was all she needed to hear: “Bondi Chai? That’s the most famous chai latte in Australia!” 

TL & JH: What sets your business apart from its competitors and how do you do this?

Martin: The milk-soluble formula and premium quality ingredients of our product have seen it become the most awarded product of its kind in Australia. For café owners in particular, Bondi Chai is the lowest cost-per-serve product of its ilk, is quick and easy to prepare, almost sells itself, and achieves incredible customer loyalty.

TL & JH: When you started, what were the first big goals you set yourself and did you achieve them? 

Martin: Our first big goals were to sell one tonne of our product a month and get some export business established. We achieved the first goal within two years by simply calling on food and beverage distributors who were willing to listen to us. We had then, and still have, a philosophy of working with anyone who wants to work with us. 

We achieved the second goal in the same period by getting an award-winning graphic design company to build a great website and ensuring that the site was Google-friendly. Our website brought us inquiries from all over the world – and still does.

TL & JH: What keeps you passionate about your business?

Martin: We’re excited by the seemingly endless opportunities – both to expand the market for our existing product and to develop new products and formats. After 14 years of involvement with chai latte, we are still amazed at how many people still ask us: “what’s chai latte”? That excites us; it shows there’s still so much opportunity to grow.

Nominations for the Telstra Business Women’s Awards are open year-round.
Find Out More

Violet Roumeliotis, 2017 Telstra Business Woman of the Year.
Success Stories
Success Stories
Business Woman of the Year helps families find their feet

Violet Roumeliotis, Telstra Australian Business Woman of the Year 2017, shares her experiences as a migrant and woman helping to improve people's lives. As told to Stuart Ridle...

Paul Greenberg, founder of online retailer network NORA, speaking at an event.
Trends
Paul Greenberg on e-commerce: Customers want a personalised experience

Paul Greenberg, founder of online retailer network NORA, is something of a pioneer in Australian e-commerce. After 35 years in the wider industry, he says success still comes b...

Image shows a worker using an e-commerce platform in a warehouse to fulfill orders.
Tech Solutions
Tech Solutions
How to choose the best integrated e-commerce platform

If there's one constant of e-commerce it's change. Success in the digital world requires an e-commerce platform that can adapt with your e-commerce strategy so that change does...

Dietitian and exercise physiologist, Kate Save accepts the 2018 Telstra Victorian Business of the Year Award for healthy eating disruptor Be Fit Food.
Success Stories
Success Stories
Be Fit Food tastes success at the 2018 Telstra Victorian Business Awards

Science with more than a pinch of flavour are the ingredients behind the rapid growth of Be Fit Food, the 2018 Telstra Victorian Business of the Year. The business’ recipe for...