Why is that Tata Coffee has not become a major brand as Tata Tea?
In tea you have 700 million consumers and 800 gm per capita consumption as against a small market for coffee with a per capita consumption of 80 gm. It is very difficult to make an impact in branded coffee with well-entrenched players already there – Nestle and Brooke Bond. But roast and ground coffee market is stagnating in India while instant coffee market is expanding. Even in this segment competition is formidable that is why no one is trying to get into this segment. So we realised that it is easier to go out of India rather than competing with these strong players. That is why we acquired the US company and now looking at Russia. But once Indian market changes, we will come back. Basically, our objective as an integrated coffee company is to make an impact in all the segments we are in — right from plantations to roasting and branding. Right from the bean to the cup, we want to create an impact in India and globally. How do you look at India’s prospects in coffee industry? See ea
