Category Archives: Coffee News

Tata Coffee plans to relaunch Eight O’ Clock Coffee brand in US, Canada

Coffee News

India-based Tata Coffee plans to relaunch its Eight O’ Clock Coffee (EOC) brand as well as offer new products in US and Canadian markets.

The company plans to introduce ‘single serve’ coffees in collaboration with Green Mountain Coffee Roasters (GMCR), a US-based specialty coffee roaster.

In 2012, EOC and GMCR announced a multi-year agreement to make EOC, Tetley tea, and Good Earth tea available in different formats.

Tata Coffee managing director Hameed Huq said that the company is curently finalizing a plan to re-introduce the brand.

“We are coming up with the relaunch and will reposition the product completely by May or June this year for the US and Canada markets,” Huq added.

Tata Coffee acquired EOC for $220m from Gryphon Investors in 2006.

Last year, following a partnership with coffee manufacturer and chain Starbucks, Tata Coffee established a new roastery at Kushalnagar in Madikeri, Karnataka, with an investment of INR45m ($834,840). The plant has a production capacity of 375 tons.

source: http://www.hotdrinks.drinks-business-review.com / Home> Non- alcoholic / Hot Drinks News / by DBR Staff Writer / January 29th, 2013

Drought, a blessing in disguise for Karnataka coffee growers

Agriculture, Coffee News, Coffee, Kodagu (Coorg)


Harvested Arabica coffee berries drying in sunlight at a plantation.
Bangalore , JAN. 4:
The drought in neighbouring districts has helped Karnataka’s coffee-growing regions get sufficient labour for picking coffee. This is because farming has been affected in the drought-hit areas. Besides, the slowdown in sectors such as mining and constructions has helped. The coffee belt of Kodagu, Hassan and Chikmagalur are getting many more workers from Mysore, Tumkur Chitradurga and Davangere.

“Easier labour availability has made coffee-picking manageable this season. Availability of workers between December and February is crucial for us to pick coffee and this year there is no dearth of labour,” Bose Mandana, a senior coffee planter from Suntikoppa in Kodagu, told Business Line.

“This year, however, since the crop is lower than the original estimate, we may need less labour,” he said.

LOWER WAGES

Due to more workers being available, wages have fallen by Rs 50-100 a day per person. Coffee-growers are paying Rs 200-250 a day, depending on the nature of work.

Labour shortage in the last three years had forced coffee growers to pay workers between Rs 250 and Rs 300 a day.

“In the last two to three years, we had to literally run behind the contractors to get workers. But this year, it is their turn to knock on our doors for estate-related jobs. This season, I am getting 20 to 30 calls per day, asking if I need workers,” said Mandana. Marvin Rodrigues, former Chairman, Karnataka Planters Association (KPA) and a grower from Hassan, said: “This year, we are getting people slightly more easily than the last few years. We are paying around Rs 200-210 for temporary workers.”

Nishant Gurjer, Chairman, KPA, and a grower from Chikmagalur, said: “This year, labour supply is plentiful and people are coming to work on the estates.”

“We are also getting quite a few experienced workers, who had worked in the estates earlier but had moved over to the mining and construction sector. Since these sectors are not doing too well now, they have returned.”

anil.u@thehindu.co.in

source: http://www.TheHinduBusinessLine.com / Home> Industry> Agri-Biz / by Anil Urs / Bangalore, January 04th, 2013

Speciality Coffee Association Seeks To Carve Niche For Indian Coffee

Business & Economy, Coffee News

Bangalore, September 8::

‘When the going gets tough, the tough gets going’ is a much abused cliche. But in the context of the present situation in the global coffee scene, there is no other way to describe the slew of initiatives launched by Speciality Coffee Association of India (SCAI) to create a niche brand identity for the Indian coffee.

An All India Barista Championship on the lines of International Barista Championship and SCAI-certified speciality coffee auction through Internet, revamping the SCAI website are some of major programmes planned by SCAI in the next one year. This is the first time such an event being held in the country.

Speaking to FE, SCAI chairman Ashok Kuriyan said, “We are working on the modalities of organising this event and also plans to promote the cafe culture in India through trained baristas.” As members of SCAI our vision is to promote varietal, organic, sustainable, geographic and estate-brand coffees, he added.

The association has also chalked out a detailed project to start SCAI- certified internet auction of speciality coffee for its members. “We plan to set up this by March 2003,” Mr Ashok Kuriyan added. Earlier, each member used to participate in the general auction on his own.

This initiative is expected to further strengthen the speciality coffee segment in the country.

Measures are already underway to revamp SCAI website. The new website will be activated with important information on a monthly basis, Mr Kuriyan said. SCAI members who lack own website will be allowed to put up a web page on their plantation coffee profile at a fees of Rs 1,000 per annum, he added.

SCAI also plans to participate in the speciality coffee association convention to be held in April 2003 in Boston, where it will showcase the Indian speciality coffee. SCAI also plans to extend its membership to foreign buyers, roasters and similar associations from other countries, said SCAI co-ordinator S Venkatesh. The membership will be further extended to roasters, brokers, retailers, traders, exporters, coffee shops, machinery manufacturers, curers, auctioneers and agri input suppliers in the future, he said. However, the association is taking a cautious step regarding this, he added. At present, the membership was open only to coffee growers and producers of monsooned coffee.

The association started with the purpose to promote the concept of special and speciality coffee in India in 2000 has around 17 members now. The association had recently held its AGM presided over by European Speciality Coffee Association president Trygve Klingenberg.

source: http://www.financialexpress.com / The Financial Express / Bangalore, September 08,09th, 2012

Tata Coffee to close ranks with Starbucks

Business & Economy, Coffee News, Coffee, Kodagu (Coorg)

To have one among the seven highly specialised global coffee roasteries.
Tata Coffee, the Bangalore-based publicly-held coffee bean supplier, is set to storm into the closely-knit roasteries group of Starbucks. The latter has just six roasteries (five in the US, one in Amsterdam) that supply to 17,000 Starbucks cafes across the world, and the roastery set up by Tata Coffee, at Coorg in the pristine Western Ghats in Karnataka, would be the next in line.

“The technology used in the roasteries for Starbucks is closely guarded and our roastery has been set up directly under Starbucks’ technical overview. The 375-tonne roastery was set up with an investment of Rs 4 crore, and will supply to the Starbucks cafes in India. Next on the agenda is to gradually start supplying to the cafes in South Asia, and eventually various other global cafes for Starbucks,” a senior management official of Tata Coffee told Business Standard. This is in line with the stated agenda that the Indian Espresso Roast will be the hallmark feature of all Starbucks stores in the market. As part of the agreement, Starbucks and Tata Coffee will work towards developing and improving the the profile of Indian-grown arabica coffees round the world by elevating the stature of Indian coffee. “However, it will be a while before Tata Coffee gets its place in mature global markets where Starbucks is present, as the processes are being fine-tuned to match the exacting standards,” the official added.

According to information available, Starbucks decided on the roastery with Tata Coffee after a series of rigorous checks on the various parameters at the Kushalnagar plant in Coorg.

An indication on the kind of ground work Starbucks does is visible in this fact when it scouted for its first roastery outside of the United States in Europe. “In the late 90s, when Starbucks considered its ambitious expansion plans for Europe, the Middle East and Africa, the company spent close to three years looking at various sites across Europe before they chose Amsterdam in the Netherlands for their first roastery outside the United States,” a Netherlands Government statement highlighted.

Ever since, Starbucks and Tata Coffee announced the pact during late January 2012, the stock of Tata Coffee has so far gained 23 per cent on the hope that there will be substantial uptake in volumes from Starbucks. The global major in coffee retailing bought over 428 million pounds of coffee in fiscal 2011 and it paid an average price of $2.38 per pound for premium green (unroasted) coffee in 2011 – up from $1.56 per pound in 2010.

Tata Coffee, a subsidiary of Tata Global Beverages, has been betting big on instant and specialty coffee to differentiate in the marketplace and is also the third largest exporter of instant coffee from India. Tata Coffee produces more than 10,000 metric tonnes of shade grown Arabica and Robusta coffees at its 19 estates in South India and its two Instant Coffee manufacturing facilities have a combined installed capacity of 6,000 metric tonnes. It exports green coffee to countries in Europe, Asia, Middle East and North America.

Tata Coffee for the second quarter of Fy13 has reported a healthy 109 per cent growth in its second quarter net profit to Rs 36.8 crore as compared to corresponding previous quarter riding on good growth in its instant coffee division and a sharp turnaround in its global subsidiary Eight O’ Clock Coffee. Total income at Rs 477 crore for the quarter was up 15 per cent.

source: http://www.afaqs.com / Home> News> / Category: Marketing / by Raghuvir Badrinath, Business Standard, Bangalore / October 25th, 2012

Tata Coffee: Standalone business is finding strength, accumulate

Business & Economy, Coffee News, Coffee, Kodagu (Coorg)

Investment rationale:

Standalone business is finding strength in rising commodity prices & instant coffee business.

– There is an increase in demand for Robusta bean globally. Demand for Robusta coffee is on a rise as demand from roasters globally increases in a bid to cut costs for blends. Demand from emerging markets as well as increasing demand for instant coffee are also key growth drivers for Robusta bean demand. ~ 75% of Tata Coffee’s produce is Robusta coffee which it exports globally. YTD Robusta prices are up by 6% vs. a 20% fall in Arabica prices. In India the current crop has suffered on account of weather and prices of Robusta have moved up by ~25-30%YTD.

– The company is taking initiatives to increase its Arabica production. The company has attained a series of quality certification and in turn increased sales focus of the same to command a premium in the market.

– Pepper & Tea, the other 2 major plantation crops for Tata coffee, are also witnessing higher realizations on the back of weather vagaries. Prices for orthodox tea are higher by 15% for the current fiscal while pepper prices are up ~40%.Tata coffee is the largest single producer of black & white pepper in India.

– Demand for soluble coffee is on a rise globally. Demand is stemming from emerging markets. Tata Coffee is investing Rs55 crs. in setting up a premium freeze dried plant with focus on new markets to drive growth.

– The tie-up with Starbucks to provide beans for their India operations to support growth in the future.

Eight o’ Clock( company’s branded whole bean brand in the US) business performance to improve on the back of launch of single serve cups & falling prices ofArabica Beans.

– The recent tie-up with Green Mountain Roasters to launch Eight o’ Clock coffee (also Good Earth & Tetley) in single serve K- cups to drive volumes.

– Cost savings on account of correction in international Arabica prices: Prices of Columbian Mild beans have corrected ~35% from the peak price and 21%YTD to 202 cents/lbs.

Valuation: The company’s coffee plantation business set to enjoy better realizations on the back of sustainable demand from new markets. Weather vagaries have reduced crop and increased realizations for other plantation crops – pepper & tea. Way2wealth beleives that there will be significant improvement in profitability of Eight o’ Clock coffee as Arabica prices correct substantially. The stock was significantly re-rated during the period of 2010 to 2012. At the CMP of Rs1012 the stock currently trades at 17 x its FY13 estimated EPS of Rs59.7. Accumulate

source: http://www.valuenotes.com / Article / Way2Wealth / October 12th, 2012

MNREGA, panacea for coffee plantations?

Agriculture, Coffee News, Coffee, Kodagu (Coorg)


Extra hands needed: Shortage of quality labour has affected coffee plantations in the State. File photo: Sampath Kumar G.P. / The Hindu
Parliamentary panel recommends extending job scheme to overcome labour shortage

A Parliamentary Standing Committee on Commerce has recommended extension of the Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA) to plantations to overcome labour shortage in the sector, particularly in Karnataka.

The 31-member panel, headed by Shanta Kumar, in its report titled ‘Performance of Plantation Sector – Tea and Coffee Industry’, suggested to the Union Commerce Ministry to extend the job scheme to coffee plantations to take up various works such as construction of water tanks, groundwater and soil management.

Coffee is a highly labour-intensive crop requiring about 400 man days per hectare per year for Arabica and 300 man days per hectare per year for Robusta.

The panel said, “There has been a serious shortage of workers in plantation areas due to employment opportunities generated by MNREGA and due to migration of work

source: http://www.TheHindu.com / Home> News> States> Karnataka / by Nagesh Prabhu / Bangalore, October 11th, 2012

Wildlife film fests to showcase Maharashtra’s biodiversity

Agriculture, Coffee News, Nature

Nagpur:
At a time when coal mining and other detrimental projects are posing a severe threat to forest and wildlife, state forest department has decided to promote its rich biodiversity and wildlife through film festivals.

This will be for the first time wildlife film festivals will be organized in cities by the forest department with the help of Nature Walk, Pune. The proposal has already been approved by principal secretary (forests) Praveen Pardeshi. The schedules and detailed programme will be worked out at a meeting to be held in Mumbai on Thursday.

R R Sahay, additional principal chief conservator of forests (APCCF) for information and technology and policy, said, “It’s an attempt to give impetus to forest and wildlife. We have asked our officials to coordinate with Nature Walk.”

The festivals will be organized not only in cities like Aurangabad, Solapur, Nashik, Kolhapur and Nagpur as proposed by the Nature Walk, but in other places too, Sahay told TOI. Nature Walk has a collection of around 900 films that showcase wildlife, forest and biodiversity of our country. “We in Pune hold wildlife film festivals that are highly appreciated by the common man. There is huge viewership of wildlife on channels like Discovery and National Geographic, but these channels don’t promote much about our region,” said Anuj Khare, honorary district wildlife warden of Pune.

Khare feels these festivals will not only help create awareness but will help brand building. The publicity wing of the forest department will help with auditorium or a school hall of a capacity of at least 500 people with a good audio system. The forest officials will also help in making other arrangements.

“Plan is to hold such festivals on Saturdays and Sundays where Nature Walk team will screen the films. The films will be first introduced and then a post-screening discussion will be held. We can also have a morning nature walk on one of the days. This will help build goodwill of forest department,” Khare felt.

source: http://www.articles.timesofindia.indiatimes.com / Home> City> Nagpur / by Vijay Pinjarkar, TNN / September 27th, 2012

Indian coffee consumption rises in 2011: ICO

Coffee News

Coffee consumption in India rose by 3% to 1.06 lakh tons in 2011, compared to 1.03 lakh tons in the previous year, according to the International Coffee Organization (ICO).

The intergovernmental organization said that the consumption of the brew in the world’s sixth largest exporter grew at a compound annual growth rate of 5.7% during 2001-2011.

However, the per capita consumption remained unchanged in 2011 at 0.1 kg per person per year since 2008, reported The Hindu Business Line citing ICO data.

ICO was quoted by the newspaper as saying, “However, there is clearly much potential for growth, particularly in countries with large populations such as India, Indonesia and Mexico.”

Compared to the global rate, coffee consumption growth in India is still higher.

Global consumption of the brew grew 1.7% in 2011 to an estimated 137.9 million bags against the 135.6 million bags in 2010.

On the other hand in India, coffee consumption was up to 1.08 lakh tons in 2010, an increase of 6%, compared to 1.02 lakh tons in 2009, the government-run Coffee Board of India said

source: http://www.hotdrinks.drinks-business-review.com / Home> Hot Drink News / By DBR Staff Writer / September 17th, 2012

Coffee perks up on smaller crop, higher demand

Coffee News, Coffee, Kodagu (Coorg)

Kochi:
A crop shortfall and higher international demand are raising robusta coffee prices while arabica prices, which had fallen in the past few months, are going up again.

Many roasters increased the share of robusta in blends six months ago when arabica prices zoomed due to a global crop shortage. Robusta prices, which have been more or less steady, are now looking up following an uptick in demand. Arabica prices which had declined in the past few months are becoming dearer as well. In London, the September contract for robusta climbed up 1.7% to $2,246 per tonne. The New York prices of arabica, which had plunged from 300 cents per pound to 148 cents, have edged up to 173 cents per pound.

“Local coffee prices reflect international trends. Robusta parchment prices are ruling in the range of Rs 190 to Rs 200 per kg. Arabica plantation prices have also touched Rs 215 per kg, though not as high as the level attained last year,” said BS Suryaprakash, chief executive of Coorg Coffee Supplies.

The prices of robusta cherry, which account for the bulk of coffee production, have moved up by Rs 20 to Rs 140 per kg now. “The roasters who did not buy earlier are lifting the stock shelling out more,” said a buying agent for a coffee exporting firm.

The local roasters who had raised the prices by 10%-15% when arabica prices shot up cut the prices marginally when the beans became cheaper. Others managed to do without a price increase by adding more robusta and chicory to the blends. Roasters are now monitoring the situation closely and may go for an upward revision if the trend persists, Suryaprakash said.

Demand for robusta has gone up in the last year when arabica prices zoomed. This has led to more buying of the variety. But given the good harvest in Vietnam and Brazil, prices may not go up sharply. Planters in India have predicted the robusta crop for the next season to be around 10,000 tonne smaller than the Coffee Board estimate of 2.21 lakh tonne.

But coffee exports, unlike last year, were around 5% lower at 2,24,529 tonne during the January 1-July 25 period, which may make available more coffee for domestic roasters, said Marvin Rodrigues, chairman of Karnataka Planters’ Association.

source: http://www.articles.economictimes.indiatimes.com / Home> News> Economy> Agriculture / by P K Krishnakumari, ET Bureau / July 31st, 2012

Coffee Board of India

Coffee News, Coffee, Kodagu (Coorg)

The Coffee Board was founded in 1942 to provide support to local coffee growers. In 1995, the institution withdrew from marketing operations, once the industry became self-sufficient.

Now it focuses on research, development, quality control and market promotion. It advises the government on matters relating to the industry.

The board also provides diploma courses in coffee quality management and holds the Indian Barista Championship to encourage baristas from across the country.

source: http://www.TheHindu.com / Home> Features> Neighbourhood / June 28th, 2012