
In the age when water purifiers were not yet popular, Dato? Michael Lim successfully established the DIAMOND water purifier brand to redefine clean and healthy drinking water. In 2014, he continued with his goal of enabling a ?refined life? and founded ARISSTO (Malaysia) Sdn. Bhd with the aim to redefine the Malaysian Experience with Coffee Culture via 5-Star Hotel Quality Premium Coffee Capsules expertly blended by an Italian Coffee Master.
Inspired by the ?sharing economy? concept, Dato? Michael Lim introduced the ?RM1 Coffee Machine? to the market. Recently, he applied the ?Micro Margin? business model to ARISSTO and launched the 5-Star Hotel Quality From RM1 campaign. Now, with ARISSTO?s ?Micro Margin? policy, everyone can enjoy 5-Star Hotel Quality coffee, tea and bread that is natural, pure and without additives from only RM1.
The headquarters of ARISSTO in Seri Kembangan, Selangor opens up into a world of exquisite and elegant water filters and coffee machines. The spacious lobby is equipped with several high-legged tables and chairs and the atmosphere is accompanied by soft melodic music that creates a cozy café ambiance.
After just a sip of coffee, I am instantly captivated by the fragrant and smooth taste of the cappuccino in my hand. I was about to compliment the barista?s good craftmanship, only to find out that the cup of rich and aromatic coffee is instead brewed by a staff a capsule coffee machine instead of a barista.
The colorful coffee capsules are extracted by high-pressure steam in the coffee machine to brew rich, natural and pure Premium Coffee. Not only that, the aroma, taste and smooth texture of each cup brewed is comparable to those sold in cafes.
Dato? Michael Lim proudly shares that ARISSTO Premium Coffee comes from the sacred place of coffee ? Italy. The whole process from selecting the highest quality beans to grinding, mixing, and packing is carefully supervised by an Italian Coffee Master to create a beautiful coffee experience.
Claiming to be a coffee layman, he admits to having limited coffee knowledge in the beginning; but when he first came into contact with capsule coffee products, he realized that it is widely popular in European and American countries. Almost every household owns a capsule coffee machine instead of drinking traditional instant coffee.
The popular instant coffee and packaged 3-in-1 coffee in Malaysia has no place in European and American markets.
?Instant or 3-in-1 coffee are dismissed by European and American countries. These coffees made from sugar, creamer, instant coffee and artificial flavors can only be said to contain coffee flavors and are not real coffee.? When he found out, he was shocked when he realized the coffee that his parents drank on a daily basis was actually chemical coffee.
To the local consumer market in Europe and American, instant coffee or 3-in-1 coffee is over-processed, destroying the characteristics, unique aroma and taste of coffee, and failing to reflect the pursuit of quality life.
What Dato? Michael Lim saw immediately reminded him that this reflects the company?s core value of pursuing a beautiful life.
Because of this idea, the first Malaysian Premium Capsule Coffee brand ? ARISSTO ? is born. Today, another brand new and exquisite premium coffee culture is blooming.
Dato? Michael Lim shares his first encounter with capsule coffee when he travelled to London in 2000:
Late at night, he passed by a certain shop and found that there was still a long queue despite the hour. Everyone was lining up to purchase capsule coffee. Dato? Michael Lim says that during that time, he has never seen capsule coffee, but out of interest, he too has purchased 10 boxes of capsule coffee to give it away to his relatives and friends.
However, when he was preparing to brew his coffee, he came across an issue. After forcibly tearing and opening the package to brew the coffee, he noticed his mistake. To brew the coffee, you need to insert it into a capsule machine. Yet, he has just bought the capsules but not the machine. He laughed and said: ?It?s a hilarious joke at that time, and my friends all laughed at me. It was unforgettable.?
13 years later, Dato? Michael Lim attended a trade fair in Hong Kong and had the opportunity to meet up with an Italian Capsule Coffee maker from Italy, which opened the door for ARISSTO Capsule Coffee.
Shifting into capsule coffee from a water purifier background is undoubtedly a very bold approach. However, Dato? Michael Lim firmly believes that this step is feasible and today ARISSTO?s success has confirmed his insight.
?The water business requires high professionalism and cannot be taken lightly. Each step is taken carefully and after serious contemplation. On the other hand, Capsule Coffee is more fun and casual, where our team can be friends with their customers.?
Good products speak for themselves! Dato? Michael Lim gives out free capsules to consumers and through this sample and experience marketing model, ARISSTO has quickly moved to a new heights.
In the initial stage of creating the ARISSTO brand, acceptance by the consumers were not high. The attitudes towards the new technology of coffee capsules or sophisticated high-pressurized steam smart coffee machine were dismal, resulting in less satisfactory sales response.
?At that time, our main sales focus was not on capsule coffee and we did not promote it in full force.?
He recalled that the retail price of ARISSTO?s high pressure coffee machine was as high as RM1,680 when it was first launched, which was a large and difficult expense for the average family. He was discouraged as a customer told him: ?I wouldn?t buy a cow just to drink milk.?
However, this did not discourage him but instead made him rethink his business model.
?At the time, I was introduced to the concept of shared bicycles. Then I thought?since bicycles can be shared, coffee machines should work too! That?s where the idea of coffee machine sharing plan first came from.?
Under the coffee machine sharing concept, anyone can install a smart coffee machine at their home or office with just RM1 monthly fee and enjoy real Italian Premium Coffee at any time.
?After introducing the sharing economy concept and sampling marketing, ARISSTO now accounts for 80% of the company?s sales and is the leading product for the group.?
After outstanding results from marketing Premium Coffee, ARISSTO also launched hot chocolate and a Premium Tea Series that encapsulates high quality tea blends from Sri Lanka.
Using nitrogen sealing preservation technology, natural bread is sealed and kept fresh for up to 6 months without any preservatives or additives. It can be easily taken out and baked for 5 minutes to easily enjoy high-quality oven-fresh bread.
Entering 2021, Dato? Michael Lim strives to bring the ?Micro Margin? business model to bring 5-Star Hotel Quality From RM1 into the World of Premium Coffee. This involves extending the 5-Star Hotel Quality From RM1 value preposition to more products.
With only RM1, consumers can enjoy 5-Star Hotel Quality natural premium coffee, tea, and bread without any additives and preservatives.
This year, ARISSTO will launch 3 new coffee flavors that has been developed to be more in line with Malaysian taste preferences.
ARISSTO has been in the market for about 7 years, and they have been gaining steady market share. Dato? Michael Lim express his gratefulness for all the support received from customers and partners. He also admits that there is still room to grow towards his goal and vision and strives to continue working harder.
?We have continuously invested in educating consumers, these efforts are bearing fruit. Currently, the Malaysian market share for capsule coffee is 3% to 5%, and our team hopes to increase that to 30% within 2 years. We?re doing this not just for sales, but more for people?s health.?
During the global COVID-19 pandemic, ARISSTO?s performance has not just increased, but accelerated. The team has started doing live online shows to share recipes, coffee brewing methods and other related interesting activities.
He has also emphasized that in addition to providing high-quality products, the company also takes relationships with customers seriously, and not just on a sales and purchase basis.
?Online sales has enabled us to reach a wider market and help us reach different segments of customers. Distributors have also eliminated many complicated barriers, allowing consumers to directly consult with professional ?Coffee Ambassadors? online.?
ARISSTO will also appoint a designated service team to follow up and serve each customer, so that they can provide assistance to them at any time.
Dato? Michael Lim has set a goal to establish a service team of 1,000 people within this year to move closer to the consumer and the market.
ARISSTO is successfully established in Singapore and Hong Kong. Last year, they planned to enter the Italian and British market, however, due to the Covid-19 pandemic, those expansion plans have been put on hold. Dato? Michael Lim hopes that after the pandemic, they can proceed with their original plan. He also revealed that the brand is currently in the midst of developing recyclable capsules, which is estimated to be available in 2022 and will effectively help to reduce waste.
A successful sailing ship must be helmed by a great crew, and the same goes for successful companies. Dato? Michael Lim prides himself on playing an ?assisting? role, and not the management. He will pay attention to the shortcomings of each team and find ways to assist, as well as guiding them to care for each other while aligning employees and the team in the company?s vision and goals. He testifies that employees here work together like brothers and sisters, regardless of level. When the company is planning to implement any plan, he will first gather the team leaders to openly analyze and dissect the plan.
?We will definitely adopt the best plan due to this process. In most cases, we will start the plan only after we have reached consensus.?
ARISSTO has also given back to the community, and Dato? Michael Lim pledges to participate in more charity projects this year. ARISSTO targets to provide healthy coffee, tea and bread to 500 welfare centers such as nursing homes and orphanages in 2021.
As for competitors, Dato Michael Lim shares that: ?We don?t have competitors, but peers. We are all working together and working hard to educate the market, so a better description would be allies or comrades.?
With NEP Holding?s strong backing, ARISSTO (M) Sdn Bhd was founded in 2014, striving to bring real Premium Italian Coffee to all coffee lovers, and set off a new revolution in the ?World of Premium Coffee? so that everyone can enjoy 5-Star Hotel Quality Coffee From RM1. In addition to coffee, they also have hot chocolate, milk and tea series, as well as the revolutionary 5-minute oven-fresh bread series.