Indian Coffee Industry

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Caffenation in INDIA is hotting Up!: 

Caffenation in INDIA is hotting Up! Yugal Hinduja Vaibhav Thakur

Some Facts and Figures: 

Some Facts and Figures Indian Coffee Retailing Market is estimated at $170 million, or about Rs 940 crore Growth rate: 40% or 200 stores per year Market Leader: Café Coffee Day

Players in Coffee Retailing: 

Players in Coffee Retailing Café Coffee Day Barista Lavazza Costa Coffee Coffee Bean & Tea Leaf Au Bon Pain Gloria Jean’s Coffee Starbucks Dunkin Donut

Café Coffee Day: 

division of India's largest coffee conglomerate, Amalgamated Bean Coffee Trading Company Ltd. (ABCTCL ) Founded in year 1996 by V.G. Sidhartha "A lot can happen over coffee." Café Coffee Day

Café Coffee Day (cont.): 

Café Coffee Day (cont.) Vertical Integration. The company is known for being vertically integrated to cut costs: from owning the plantations ,  growing the coffee ,  making the coffee machines to making the furniture for the outlets.

CCD’s Strategy: 

CCD’s Strategy Market Development Strategy CCD has Incorporated formats like The Lounge Book Café Music Café Highway Café Garden Café Cyber Café

CCD’s Strategy (contd.): 

CCD’s Strategy (contd.) “ It is different for different outlets. Our pricing depends on consumer potential and what are the input costs that go into running that store, including rentals. We would have different pricing across different retail points,” CCD Marketing President Ramakrishnan K . Business Line Mumbai, 21 st Oct 2012

Starbucks: 

Starbucks World’s Largest Coffee Retailer entered Indian Market by a JV with Tata Global Beverages in the year 2012. Currently operates in Mumbai, plans to open stores in Delhi by Jan 2013.

Starbuck’s Strategy: 

Starbuck’s Strategy Market Penetration Strategy “ Starbucks, with Tatas as partner, has opted for competitive pricing that is nearly half the coffee chain’s charges elsewhere in the world —— with a cup of coffee costing about Rs 80 for a small offering and Rs 165 for a large one .” Business Line Mumbai, Oct 21 st , 2012

Barista Lavazza: 

Barista Lavazza Established in Feb 2000 by Barista Coffee Company. It was taken over by Lavazza in 2007, Italy’s top ranking coffee company. Fastest brand to make it on list of super brands and is ranked in top 50 phenomenon that changed India.

Barista Lavazza’s Strategy: 

Barista Lavazza’s Strategy Differentiation “Penguin Books, Barista Lavazza in tie-up ” “This alliance has also moved  Barista Lavazza  a notch closer to its endeavour of being the most 'innovative café' in the country” India Info line Nov 8 th ,2012

Barista Lavazza’s Strategy (cont.): 

Barista Lavazza’s Strategy (cont.) Barista Lavazza also plans to start a ‘Book Club’ at its cafes, wherein customers can enjoy book reading sessions .  ‘Emerging Writer’s Awards’ for people with literary interests . A ttract potential customers,by giving them the opportunity to enjoy through two binding forces - literature and coffee

Barista Lavazza’s Strategy (cont.): 

Barista Lavazza’s Strategy (cont.) “Coffee and books always go well together, and we’re looking forward to bringing some great books and some wonderful authors to Barista as part of this initiative. And what better way to launch this partnership than with Shobhaa De’s brand new book ‘ Sethji ’ - one of the most talked about books of the year - and a scintillating read,” Himali Sodhi Vice President Penguin Books India

PowerPoint Presentation: 

“The focus is not merely on increasing the number of outlets. An outlet may work for a bit of time but later on may not make much business sense.” Attilo Capuano Director Asia & Pacific Lavazza

Costa Coffee’s Strategy: 

Costa Coffee’s Strategy Expansion Positioned itself as Premium coffee shop. “ Our focus is towards those who have just started their careers and our mean age at the stores is around 27 years” Santosh Unni CEO, Costa Coffee

Costa Coffee’s Strategy (cont.): 

Costa Coffee’s Strategy (cont.) Operates only in Metros Will focus on 4 areas C omedy acts Music (tie up with Universal Music) Books (searching for publishers) Art

Costa Coffee’s Strategy (cont.): 

Costa Coffee’s Strategy (cont.) “Frankly , I don’t think there will be anything radically new to do that somebody already has not tried. Various people might have done bits and pieces of it. However, none of them have a structure to it. The main difference in our offerings is the way we are creating sub-brands, instead of one-off events .” Santhosh Unni CEO, Costa Coffee * In an interview with Jagadeesh Krishnamurthy.

PowerPoint Presentation: 

“I can’t have this business running with just 100 stores. This business starts making sense to stake holders after 300 stores” Santhosh Unni CEO Costa Coffee

Gloria Jean’s Coffee: 

Gloria Jean’s Coffee  Australia's largest coffee retailer Came to India in 2008 Plans to invest INR 70 Crores

Gloria Jean’s Coffee: 

Gloria Jean’s Coffee Positioned itself as a premium coffee shop Setup kiosks and mobile carts at strategic spots like shopping malls etc. Citymax Hospitality is the master franchisee for Gloria Jean’s, and is mulling a sub-franchisee model.

PowerPoint Presentation: 

“Globally we have twice as many as kiosks as stores. Kiosks cost less to setup and offer immense brand visibility in strategic spots like shopping malls” Tony White Regional General Manager Gloria Jean’s Coffee

Coffee Bean & Tea Leaf: 

Coffee Bean & Tea Leaf Founded in 1963. Its Oldest and largest privately held coffee retailer in US Entered Indian market in 2007 through franchise (Blue Foods) With a reputation for excellence, the company is a leader in product innovations, having developed the original Ice Blended® beverage.

Coffee Bean & Tea Leaf (cont.): 

Coffee Bean & Tea Leaf (cont.) Known for highest quality coffee. Outlets in Delhi, Mumbai, Hyderabad and Kolkata. Besides the signature Ice Blended , Coffee Bean in India has signature sandwiches, chocolate fondues etc . Won “Best Café Award- Gold” at India International Coffee Festival 2012.

PowerPoint Presentation: 

“We need to give customers more than just coffee to come to our stores. We have doubled the number of food items on the menu since 2008” Arun Chopra Business Head (Operations) Blue Foods (Franchise of CBTL)

PowerPoint Presentation: 

Thank you