FROM a humble traditional Kopi O manufacturer to a homegrown coffee brand with a growing presence in international markets, fourth-generation family business SBK Coffee continues to blend heritage with innovation as it charts its next chapter.
Founded in Penang in 1944 by Chan Kok Tong, SBK Coffee, also known as Sin Boon Kee, has remained a family-run business for more than eight decades.
Today, 34-year-old Jonathan Chan represents the fourth generation of the Chan family, following in the footsteps of his great-grandfather, grandfather Chan Hua Chuan and father Chan They Lin.
Jonathan, who returned to the family business in 2016 after completing his university studies, said preserving the company’s traditional coffee-making heritage while embracing new opportunities had been central to its transformation.
“My great-grandfather started the business in 1944, and we have been doing traditional Kopi O manufacturing ever since. When I came back in 2016, I went through every part of the operation, from sourcing raw materials to roasting, processing and quality control,” he said.
He underwent about two years of hands-on training across the business, including learning the intricacies of traditional roasting, a process that remains at the heart of SBK Coffee’s identity.
Jonathan said the traditional roasting process could take about 30 to 40 minutes before the coffee beans developed their characteristic dark chocolate-like colour.
“Sugar is added during the roasting process, but it is not there to make the coffee sweet. It is for the caramelisation process and to develop the flavour,” he explained.
The coffee is then cooked for another 15 minutes before being transferred to a cooling table, where it is left to cool for about 20 minutes.
Once cooled, the coffee hardens into pieces which are subsequently ground, first into coarse, stone-like particles before undergoing another grinding process to produce the familiar coffee powder.
Despite its traditional roots, Jonathan recognised early on that the company needed to evolve to remain competitive.
In 2018, SBK Coffee embarked on research and development to diversify beyond its traditional single-product offering, introducing FMCG sachet products featuring its signature Kopi O.
Among the changes were increasing the amount of coffee in each sachet from 10g to 15g, replacing margarine with butter and introducing premium black-and-gold packaging.
“We realised that if we continued doing only one product, it would be very difficult for us to grow. The market was changing, and we needed to offer something different while still maintaining our identity,” said Jonathan.
The following year, SBK Coffee introduced its Royal Black Coffee, a proprietary Arabica and Robusta blend developed to deliver a stronger aroma and appeal to younger consumers.
The company also expanded its beverage range, including bottled coffee, matcha, Thai beverages and selected Japanese drinks.
Then came another turning point in 2020.
BK Coffee opened its first concept store that year, initially as a platform to showcase its products and strengthen direct engagement with customers.
However, the Covid-19 pandemic and movement control order (MCO) forced the company to quickly rethink its business model.
Jonathan said the company turned to e-commerce and bottled coffee delivery, launching its Shopee presence in May 2020.
“We had to change very quickly. Covid-19 forced us to look at online sales, and that actually opened up a whole new market for us,” he said.
The move paid off, with SBK Coffee rising to the No. 1 position in Malaysia’s black coffee category on Shopee, while subsequently strengthening its presence on platforms such as TikTok and its own e-commerce channels.
Its physical footprint has also continued to grow, with outlets opened in 2020, 2021, 2023, 2024 and 2025.
The company now operates five outlets, with a sixth planned for the fourth quarter of this year at First Avenue Mall in George Town.
Jonathan said the concept stores were more than just retail outlets, as they allowed SBK Coffee to build a complete coffee experience around its heritage.
The company has also introduced no-ice cold drinks at its outlets to maintain consistency in taste, while offering customers something different.
Beyond its retail presence, SBK Coffee’s products are now distributed through major supermarket chains and retailers across Malaysia, including AEON and Village Grocer.
Its reach has also extended overseas through distributors and customers in countries including Thailand, Singapore, Hong Kong, Australia, the Philippines, China, the United States and Canada.
Jonathan said the company now has a presence in around 16 to 17 countries through its international partners.
From producing a single traditional coffee product, SBK Coffee has grown into a diversified operation capable of producing up to 1,000kg of coffee a day, or about 70 to 80kg an hour.
The company has also strengthened its credentials through halal certification, obtaining certification for its coffee products in 2022 and its outlets by 2024.
Its workforce has grown significantly as well, from about eight employees when Jonathan returned in 2016, to more than 160 employees across Malaysia today.
Jonathan said the company deliberately maintained a diverse workforce, with younger employees playing a major role in its front-line operations while older workers contribute in areas, such as promotion and packing.
“We want to create opportunities for both the younger and older generations. Everyone has something to contribute, and we believe in giving people that opportunity,” he said.
As SBK Coffee looks towards the future, Jonathan said the ambition was no longer simply to sell coffee, but to develop a wider coffee ecosystem encompassing manufacturing, FMCG products, retail, digital engagement and tourism.
Among its latest offerings is the Nitro Nanyang Cold Brew Coffee, reflecting the company’s continued efforts to introduce new experiences while retaining its Nanyang coffee identity.
The company is also exploring digital rewards and app-based features to strengthen customer engagement.
With Penang preparing for Visit Malaysia 2026, SBK Coffee has also collaborated with Tourism Malaysia as part of efforts to showcase local coffee culture to visitors.
Jonathan said sustainability was another area receiving greater attention, with the company moving towards honeycomb cartons to replace plastic packaging in line with Penang’s green initiatives.
“We want to grow, but we also want to grow responsibly. Sustainability is becoming increasingly important, and we are looking at ways to reduce our use of plastic and make our operations more environmentally friendly,” he said.
Looking further ahead, Jonathan said SBK Coffee’s long-term ambition was to expand its national footprint and potentially pursue an initial public offering (IPO) around 2032, depending on the company’s performance and readiness.
For a family business that began with one traditional Kopi O product in Penang more than 80 years ago, the journey has been one of adaptation, from traditional roasting and manufacturing to e-commerce, cafés, FMCG products and international markets.
Yet for Jonathan, the essence of SBK Coffee remains unchanged.
“We are still a traditional coffee manufacturer at heart. We just want to take that heritage and bring it to the next generation,” he said.
Story by Kevin Vimal
Pix by Siti Nuratikah Rahmat