Innovation has been the watchword for coffee brand Barista Lavazza, and this is highlighted in Amore, an art-themed menu for India. The menu pairs food and coffee, and the selections are presented using pop art. The company regularly does thematic menu launches. Last year it tied up with fashion designer Rina Dhaka to launch Milano Collezioni, a fashion-inspired menu. The art work for Amore was done by Arrested by Art, a Delhi-based art boutique. And, Barista Lavazza is not the only coffee outlet that is introducing new concepts and innovation to woo Indian customers, particularly the youth.
Tata Starbucks recently launched the India Estates blend, an addition to its Indian Espresso Roast blend. Sourced and roasted in India, this blend is part of the company’s strategy to deliver locally relevant experiences to its customers. The company recently introduced Pumpkin Spice Latte, a Starbucks classic. And, to complete the experience, it is offering a wide range of merchandise, including a mug designed specifically for India. Internationally, Starbucks’s country and city mug series is quite popular.
Cafe Coffee Day (CCD) introduced Friends of Frappe, a new menu comprising beverage and bite-sized snacks focused on the Indian market. The special menu offers Bestie Combos, which pairs a snack and beverage like Amore does.
With coffee culture becoming popular in the country, the number of cafes has been growing fast. At least 200 outlets have been opening every year, for the past five years. The market is estimated to be worth Rs.1,000 crore, and growing at around 15-20 per cent annually. It is said that India can take another 2,000 cafes in the near future.
Santhosh Unni, CEO, Costa Coffee India, said coffee shops “have become the favoured hang-out zone for the youth and the preferred meeting place for a wide profile of people”. “It highlights not just a shift in taste, but a cultural shift as well, where young, affluent Indians are more interested in global trends than ever before,” he said. “The increase in disposable income and shifting lifestyle preferences are the key drivers of the growth being witnessed in the Indian coffee market.”
Traditionally, India is tea-drinking, with the coffee to tea ratio being 1:7. India consumes only 80gm of coffee per capita, as against six kilo per capita in Italy. The current boom in India is coming from two distinct trends—middle-class consumption and out-of-home consumption.
“Consumer acceptance is actually driving the growth in consumption, as well as the café culture,” said Nilanjan Bhattacharya, COO (India and SAARC), Barista Lavazza. “Globalisation, expanding base of the middle class, rising disposable incomes, changing lifestyle patterns, coupled with exposure to international trends through films, advertising, youth community sites and personal blogs are all factors which are driving this trend and the shift in consumption patterns.”
Tata Starbucks sees a huge opportunity in sourcing and roasting local premium Arabica coffees for international consumption. Tata Coffee ensures that the coffee supplied to Tata Starbucks is 100 per cent locally sourced and roasted. Tata Starbucks is a joint venture of Starbucks Corporation and Tata Global Beverages.
All the major players in the Indian cafe market are trying to maximise the customer’s experience in the cafe. CCD has around 30 outlets uniquely designed to hook the youth. The company is active on social media, using the platform to gather feedback from customers. It also holds coffee-tasting sessions for customers.
Avani Davda, CEO, Tata Starbucks, said the “Starbucks Experience” is built on three basics: “our products, our places and our people”. “Our offerings, in-store experience, and store design reflect the community gathering place that Starbucks is known for,” she said. “Customers come for coffee, stay for the inviting warmth and return for the very human connection.”
K. Ramakrishnan, president (marketing), CCD, said the company had coffee plantation trails at its resort—The Serai in Chikmagalur, Karnataka. Tata Coffee, too, is popularising coffee plantation trails at some of its exquisite estate bungalows in Karnataka.
Costa Coffee launched Costa Laughaccino, a stand-up comedy series by leading artists from India and the US. They also organised Costa Rhythm and Brew, where the likes of Leslie Lewis, Rabbi Shergill, Indus Creed and Indian Idols performed at Costa cafes.
Barista Lavazza reached out to the customer with its Click-a-Coffee photography contest. The best 100 photographs chosen by ace photographer Pradeep Dasgupta will be brought out as a coffee table book. The company also has Friendship Jam, an event for music lovers and amateur bands. The company has been hosting Penguin book launches. The first book to be released was Shobhaa De’s Sethji. Barista Lavazza also brought out a new coffee, named after the book’s title character, for the launch. During the launch De tweeted: “Sethji coffee—go for it guys. It’s seriously yummmmm. Even the book reads better after a mug or two of the brew….”
Visibility, too, is top on the list for the cafe chains. “We have established our outlets at different locations such as places of tourist interest and hill stations to catch the attention of the customers,” said Ramakrishnan. “CCD has outlets all over, from religious places such as Vaishno Devi, Haridwar and Rishikesh to places near Metro stations in Delhi. We also have outlets in Austria and the Czech Republic.”
And, the coffee boom is good news not just for the well-heeled. Costa Coffee’s special HR initiative provides employment to the physically challenged, including the hearing-impaired. The company invests in special training for these employees. Store managers, shift managers and many in the senior management are schooled in sign language to ensure better coordination with the special employees. Currently, 15 per cent of Costa Coffee employees are special, and the company plans to raise it to 25 per cent by the end of next year.
EXPANSION PLANS
Cafe Coffee Day: First cafe at Brigade Road, Bangalore, in 1996. More than 1,500 cafes today. Target: 2,000 cafes by 2015.
Tata Starbucks: Born in October 2012. Has 25 cafes across Mumbai, Delhi and Pune. Probable next stop: Bangalore. Also looking at Tier-II cities.
Costa Coffee: Came to India in 2005. 100th store opened at Carter Road, Mumbai. Target: 300 cafes by 2015. Recent cafes: Chandigarh, Ludhiana, Agra and Jaipur. Coming soon: Hyderabad. Looking closely at Tier-II & Tier-III cities.
Barista Lavazza: First store at Basant Lok, New Delhi, in February 2000. Aiming at Tier-II and Tier-III cities. Recent cafes: Patiala, Surat, Visakhapatnam, Jaipur and Nagpur.
source: http://www.week.manoramaonline.com / The Week / Home> Business / by Abhinav Singh / Monday – November 25th, 2013
