The coffee price in the international market is expected
to increase with the 30-per cent decrease in Brazilian
about the international market trends, Tata Coffee managing
director M H Ashraff says: "The coffee crop in Vietnam
has come down while that of Columbia has increased. Last
year, the production in Vietnam was high, resulting in
a glut in the international market."
the domestic coffee plantations experienced a fall in
production last year, the plantations owned by Tata Coffee
bucked the trend. "Last year India experienced an
8-per cent drop in coffee production. But our plantations
registered a 14-per cent increase in output," says
Ashraff. "The yield increase was achieved by not
cutting on any crop inputs."
Rs 178-crore Tata Coffee is Asia''s largest integrated
coffee company owning 20,000 acres across 26 estates in
and around Coorg in Karnataka. The company produces 10,000
tpa of coffee and is the second-largest exporter of instant
coffee from India. However, Tata Coffee was not able to
break the stranglehold of Nestle in the domestic instant
coffee market with its Tata Café and Tata Kaapi
filter coffee market, mainly in the South, shines bright
for the company, though. "The market size of the
roast and ground coffee in the South could be divided
into three categories pure coffee (price range
per kg Rs 110-Rs 135; volume 7,500 tpa), coffee with chicory
mix (per kg Rs 85-Rs 140; 10,500 tpa) and other varieties
(per kg Rs 60-Rs.85; 11,000 tpa)," says Ashraff.
the other hand, Tata Coffee is now focusing its efforts
on the Southern filter coffee market by launching a new
brand, Mr Bean, a chicory-mixed coffee in the ratio of
47 (chicory) : 53(coffee). Tata Coffee''s earlier chicory-coffee
brand is Tata''s Pure Double Roast while its pure coffee
brand is called Tata''s Coorg.
Kerala Mr Bean has been received well. In a short time,
the brand has captured 17 per cent of the market share
in its segment," says Ashraff. The direct competition
for Mr Bean is Hindustan Lever''s Green Label and several
other local brands. But HLL hasn''t introduced any new
brand in this category.
queried about the company''s plans for its 29 coffee retail
outlets (Coorg), which are franchised, he says the company
has plans to revamp the outlets to sport a trendy look.