Category Archives: Coffee News

Who won the Flavour of India Fine Cup Award?


The results are in and have recently been published in the Hindu Business Line.

The winner of the Flavour of India Fine Cup Award has been decided.

This is a competition which has been organised by the Coffee Board of India on an annual basis, to promote the production of high-end gourmet quality coffee.

The aim?

To introduce these fine coffees to the international coffee industry.

And the results are in for this year… Who won?

The Pedabayalu Coffee has been awarded the best in region for this year.

The coffee is grown in the Visakhapatnam district in the Araku region.

The judges who made this decision were an international jury and they met in Melbourne in Australia.

It was chosen in the Arabica general category of coffee – the arabica bean, of course, is one of the favourites in coffee circles.

This Visakhapatnam district has some 4,000 hectares of coffee and takes the matter seriously.

There are around 3,000 families who work on these coffee plantations and they are obviously doing a good job.

What happens now?

The coffees which have been decreed as being outstanding, such as Pedabayalu coffee, will be chosen on a national level for ‘final cupping.’

This will take place by an international jury of well-regarded Cup Tasters from around the globe.

Hopefully, the Flavour of Fine Cup Award winner will do well on this occasion too.

Whatever the outcome at the final cupping, the profile of Indian gourmet coffee has been raised.

Posted by Clive on Monday the 28th May 2012

source: http://www.worldcoffeenews.com / by Clive / Monday, May 28th, 2012

‘Coffee is becoming trendy’

SPECIAL FEATURE: GLOBAL INVESTORS MEET

Javed Akhtar, Chairman of Coffee Board

IN the late 1960s and early 1970s, good grade coffee beans and powder were in short supply in India. One could buy them only at specially established coffee depots. There would be long queues at these depots to collect a token to purchase the beans or powder. The beans would be taken home, roasted, ground by manual grinders and then used to produce the best-smelling, best-tasting filter coffee. Today, coffee is in abundance, and there is a wide variety of beans to choose from, thanks to improved methods of cultivation, increased production and the liberalisation of the Indian coffee industry.

The credit for promoting the flavour of coffee must go to the Coffee Board of India. Set up under an Act of Parliament in 1942, the Coffee Board is an autonomous body functioning under the Ministry of Commerce and Industry. Its main focus is on basic and applied research in coffee, quality upgradation and promotion of coffee in the domestic and international markets. The Coffee Board until 1995 had a pool (controlled) marketing system for coffee. With economic liberalisation, coffee production became a strictly private sector activity. The board’s Central Coffee Research Institute, located in Chikmagalur district in Karnataka, is one of the premier coffee research institutes in the world.

The Coffee Board will, without doubt, be one of the star attractions at GIM 2012, promoting coffee and showcasing its many flavours. On the eve of the GIM, Javed Akhtar, the Coffee Board Chairman, took some time off to speak to Frontline. Excerpts from the interview:

What plans does the board have to promote coffee?

Coffee consumption in the country has been growing at a rate of 5 to 6 per cent a year. At present, coffee consumption is over one lakh tonnes a year. From being a traditional beverage consumed mainly in south India, coffee has become a trendy beverage with a national presence, consumed in several forms. Its strong presence in the domestic market provides many avenues for enterprise development.

What has facilitated this growth in consumption?

The growth of the domestic market has been possible through the promotion of awareness and consumption of pure coffee. This has been done through generic promotional campaigns using mass media and participation in domestic events and festivals. To facilitate entrepreneurial development in the coffee value chain, the Coffee Board has been training people in coffee roasting and brewing. This business vertical is complemented by providing support for setting up roasting units.

The Deputy Chairman of the Planning Commission Montek Singh Ahluwalia has suggested that tea be declared the national drink.

I am not aware of any drink being declared as the national drink. Anyway, we don’t position coffee as competing with any drink.

How do you plan to attract investors to the coffee industry?

The strong growth in coffee consumption is throwing open opportunities for value addition. The outlook for this sector is much more attractive, given the continuing industry dynamism. The interest in the domestic coffee market can be seen by the high level of investment in the sector with the establishment of a Lavazza unit, the entry of Starbucks [which has a tie-up with Tata Coffee] and the arrival of Dunkin’ Donuts [a United States-based coffee and baked-goods chain]. It is also seen that the existing coffee retailers such as Café Coffee Day, Costa Coffee, Coffee Bean &Tea Leaf, Gloria Jean’s Coffee, Aromas, Au Bon Pain and Testa Rossa are planning to expand their businesses to capitalise on this enthusiasm for coffee. At the same time, small and medium roasting units and stand-alone cafes are also finding their way into niche coffee market development.

Growers complain of a lack of stability in coffee prices.

The price of coffee has never been stable. It depends on demand and supply, the quantity and quality of harvest, the powerful and influential secondary markets in London and New York. Though coffee is grown in developing countries, it is consumed in developed countries, so the state of the economy of these countries goes a long way in determining the price of coffee. What is needed to be provided to the grower is good/adequate returns in capital and labour costs.

Growers complain of a cartelisation of prices by big growers.

There are around 74 or 75 coffee exporters, among whom 10 are big. But there is no cartelisation of prices. There is also no abnormality of prices and it is a free and mature market.

Ravi Sharma

source: http://www.frontline.in / vol.29 , issue. 11 , june 02-15, 2012

South sips tea, North cool with coffee

Bangalore:

Coffee in the North, tea in the South. In a reversal of preferences, more coffee is being consumed in North India while tea is gradually becoming the preferred drink of the South. And it’s by choice, say industry experts.

Coffee consumption has gone up by 6% in the past few years while tea consumption has shown a 3% annual growth, with both registering thumping increase in hitherto lean-consumption regions. A recent survey by Coffee Board of India, Bangalore shows that of late, more than 50% growth has come from non-South regions. The count of casual coffee drinkers has increased significantly in the past few years in the non-South regions.

“Growth opportunities lie with occasional drinkers and more so in North, East and West of India, which are potential segments to tap”, said a coffee board official.

It’s a similar story in tea. Karnataka records a per capita consumption of 822gm and features in the second highest tea consuming states category. These are in the 800-1,000gm category and include Himachal Pradesh and Rajasthan.

“India is the world’s largest consumer of tea in terms of volume. The domestic market growth has been very significant with non-southern states definitely showing a substantial growth,” G Boraiah, director, development, Tea Board of India, Kolkata, told TOI.

Reasons for shift

“Tea is high on medicinal value. Cities like Bangalore boast of a huge youth base, with access to literature and online information, and they’re perhaps making a conscious decision to switch to tea,” said Boraiah. Significantly, older people in the South still swear by coffee. South India continues to have the largest number of coffee drinkers.

“Tea contains anti-oxidants which are beneficial to the human body,” said V G Dhanakumar, director, Indian Institute of Plantation Management (IIPM), Bangalore. An initiative of the Ministry of Commerce and Industry, Government of India, IIPM is co-promoted by the commodity boards viz. Coffee Board, Rubber Board, Tea Board and Spices Board and Plantation Industry Association.

The growing popularity of coffee, including in the North-East (known to be the biggest tea consumers) can be attributed to the many international coffee chains. In southern states, with a rise in migrant population, coffee is steadily giving way tea.

“Thanks to visibility, interest and growing popularity, coffee consumption has grown thanks to increasing number of coffee bars and cafes. The primary reason has been a significant shift in demographics, increased urbanization and greater disposable income levels,” said a coffee board official.

Coffee Trends

* Consumption has shown an annual average growth of about 6% in past decade — from 70,000 MT (metric tonnes) to 1,02,000 MT till 2009

* Consumption has increased in six years by about 32,000 MT, of which more than 50% growth has come from non-south regions

* Consumption has grown in non-south regions at 42% annually (5456 MT to 21,558 MT) while it has grown by 3.5% annually in southern states (64834 MT to 80538 MT)

(Source: Coffee Board of India, Bangalore)

Tea Tale

Year Estimated consumption (at 3.7% growth)

2010

889.15

2011

922.05

2012

956.16

2013

991.54

2014

1028.23

2015

1066.27

2016

1105.73

2017

1146.64

(Consumption in million kg)

(Source: Tea Board of India, Kolkata)

source: http://www.articles.timesofindia.indiatimes.com / Home> City> Bangalore / TNN / May 29th, 2012

Specialty food, beverage sales soar to $75 Billion

New York:
Consumer willingness try new foods and flavors helped propel U.S. retail and foodservice sales of specialty food and beverages to $75 billion in 2011, a 6.9% increase over 2010 sales, according to a new report from the National Association for the Specialty Trade (NASFT). Surging demand for yogurt, energy bars, nut and seed butters and coffee drinks helped drive sales to new highs for the second year in a row.

The report, “The State of the Specialty Food Industry 2012″ tracks sales of specialty food through supermarkets, natural food stores and specialty food retailers, and includes research from interviews with food retailers, distributors, brokers and others involved in the supply chain.

“Consumers are making better food a part of their lifestyle,” said Ron Tanner, vice president, communications and education, for the NASFT. “They are embracing new foods and flavors and are willing to choose top-quality even while they economize elsewhere.”

Cheese continues to dominate specialty foods, pulling in $3.44 billion in retail sales in 2011. The next largest retail sales categories are meats, poultry and seafood; chips, pretzels and snacks; coffee, coffee substitutes and cocoa; and bread and baked goods. Functional beverages are the fastest-growing segment, followed by yogurt and kefir.

While 2011 product introductions declined 6.2% a manufacturers focused on existing lines, there is positive momentum for the industry as the average transaction size for specialty food stores jumped 11.4% to $41.49.

Key takeaways from the report include:

Specialty foods represent 13.7% of all food sales at retail.

Kosher is the leading claim for new specialty food products, followed by All Natural.
Natural food stores are the fastest growing retail channel, with a sales increase of 19.8% from 2009-2011.
In 2011, 41% of specialty food manufacturers reported a sales increase of more than 20%.
Local is the most influential product claim today, according to 75% of retailers surveyed.
Latin is the fastest-emerging cuisine, retailers said. Importers report growth in cuisines from Eastern Europe and India.

Sources:
National Association for the Specialty Food Trade: Specialty Food Industry Hits New High
www.foodproductdesign.com / Home> News / April 02nd, 2012

Arabica Plantation grades gets few enquires at ICTA

Bangalore, MARCH 19:
Arabica Plantation coffees got fewer enquiries from exporters and roasters during the auction of the Indian Coffee Trade Association last week.

According to auctioneer J Thomas & Company, Arabica Cherry coffees got enquiries from the roasters and Robusta Parchment was well received by both exporters and domestic trade. Where as Robusta Cherry got selective enquiries at the Indian Coffee Trade Association (ICTA) auction.

A few lots of Arabica Plantation MNEB and C grade sold at current price levels (Rs 11,100), where as PB, A and B grade received no enquiries. Arabica Cherry PB, A, AA and C grade received few enquiries and sold between Rs 7,200 and Rs 7,800 to mainly the roasters.

Robusta Parchment coffees got good support from the exporters and also from the domestic trade. The price for PB and RKR grade was higher by Rs 100-200/50 kg compared to previous sale; AB, AA and C grade sold at current price levels.

Robusta Cherry C grade sold at current price levels, while other grades remained unsold as seller’s price expectation were higher than the buyer’s interest.

Arabica Plantation, Arabica Cherry and Robusta Parchment BBB price were higher by Rs 200-400/50 kg compared to last levels; Robusta Cherry BBB sold at current price levels.

Following are the prices quoted for grades in 50 kg bags:

Arabica varieties — Arabica Plantation MNEB Rs 11,100-11,200, Arabica Plantation C Rs 9,510, Arabica Plantation BBB Rs 6,400-6,900, Arabica Cherry PB Rs 8,750, Arabica Cherry A Rs 9,500, Arabica Cherry AA Rs 9,600, Arabica Cherry C Rs 6,700 and Arabica Cherry BBB Rs 5,750.

Robusta varieties — Robusta Parchment PB Rs 7,200, Robusta Parchment AB Rs 7,800, Robusta Parchment AA Rs 7,950, Robusta Parchment RKR Rs 7,850 and Robusta Parchment BBB Rs 5,450-5,500, Robusta Cherry C Rs 5,375, Robusta Cherry BBB Rs 5,300-5,325.

anil.u@thehindu.co.in

source: http://www.TheHinduBusinessLine.com / Industry & Economy> Agri-Biz / by Anil Urs / March 19th, 2012

Budget 2012: It’s time to wake up and smell the good brews

The coffee business will get an impetus from the reduction in basic customs duty from 7.5% to 5% on specified coffee plantation and processing machinery. Some say it could even encourage home-brewing of coffee.

Coffee growers, brewers, grinders, roasters, processors, curers and retailers will now be able to import machinery and equipment at a lower cost. It will allow more farmers to import farming equipment like weed cutters, berry pluckers, grading and cleaning machines, sprayers and other plantation machinery. Coffee retailers may be able to import coffee dispensers, vending machines, blenders, shakers etc at a lower cost.

Anil Bhandari, president of the India Coffee Trust, said most of these equipment are imported now and therefore the cut in import duty will give a boost to the coffee landscape in general.

Marvin Rodrigues, chairman of Karnataka Planters’ Association, said the reduction in import duty would complement Coffee Board’s mechanization scheme. “The board has been pushing for mechanization, taking cognizance of the acute labour shortage and wide-spread labour migration in the plantation industry. The only way to survive is to introduce mechanization,” he said.

Bose Mandanna, member of the Coffee Board and a large coffee planter from Coorg, said any reduction in import duty would benefit the entire coffee eco-system, be it growers, roasters, curers or retailers.

The coffee culture in India is becoming stronger. The country’s per capita coffee consumption now is 100 grams, up from just 60 grams three years ago. In England it is 9 kilograms, and in the US 5.5 kg.

“Coffee consumption is growing at 40% per annum in northern states, where it has not been the traditional beverage. The favorable duty structure will also help kick start a home-brewing culture. If coffee brewing machines are available in the Rs 5,000 to Rs 8,000 range, many households will be interested in them. Currently they are well over Rs 10,000,” said Bhandari.

source: http://www.articles.timesofindia.indiatimes.com / Business> Budget 2012> Union Budget / TNN / March 17th, 2012

Emerging prototypes of Indian coffee drinkers

The Kitty Party Ladies
They are women in all shapes and sizes, bumbling in post lunch, in tittering groups of 10-15. Mostly, they’ll troop in for a mocha or hot chocolate when they can combine retail therapy with a meal. Experts say safety is paramount for this category so location is
critical: a shopping centre or high-street channel. They usually stop by for a longish stint — lunch or high-tea and are generally not seen in the CCDs but in the Costas/Big Chills. “Coffee is a lifestyle, tea is a beverage. If the boss comes home, you’ll serve him coffee, but if a neighbour drops by, you’ll give him tea,” says Harish Bijoor

The Corporate kind

“The café culture in India is an exploding lifestyle for the young, upwardly mobile middle-class,” says Anil Bhandari of India Coffee Board. Easily spotted with their spiky gelled hair, formal/semi-formal attire and a cappuccino by the side, they typically hold business meetings with clients or work on their laptops. “The entrepreneur, who may not have a large office, uses the coffee shop as a meeting place given the certain quality of ambience,” says Costa’s Santhosh Unni. He/she frequents a café more than a casual customer for whom coffee is an ‘impulse’ category, say experts. This lot includes insurance and sales people making client pitches, office-goers taking a break, interviewers quizzing potential candidates and, in rare cases, those networking with other customers in the café. The corporate segment is key for a brand like Costa that targets the age group of 21-28.

Lovespotting

Move over parks, cafes are the new couple haven. Experts say food and beverages are incidental to this category — they choose cafés for the space and privacy. Even matrimonial meets have trickled in here as cafés turn into lounges. “The key difference in India is that they take espresso with milk, and spend time with their coffee. In Italy, you enter, have an espresso shot and leave,” says Lavazza’s Attilio Capuano. “In India, people like small sizes unlike in the west,” says Mohammad Feroz of The Coffee Bean & Tea Leaf.

Meet-Ups

These are the offline get-togethers — hobby groups, informal clubs/associations, bloggers, Tweet-ups etc — where members opt for cafés as the preferred hangout. Meeting schedules are made on social networking sites. Brands such as Costa are looking to cash in on this trend by designing activities such as performances, book-reading sessions, exhibitions, blog sessions, debates etc. These groups typically order more finger-food and a mix of hot/cold coffees. Also, in India, it’s more about food than beverage so most cafés prefer to localise tastes.

The Anna Wintour Latte

These fashion-conscious/socialites appreciate coffee and are particular about having it sans milk or sugar. Knowledgeable and westernised, the well-heeled have the relevant exposure and know their espresso from their filter. Incidentally, espresso is the least drunk version in India. “Of the total consumption, 57% is instant coffee while 43% is roast and ground (filter). Instant coffee consumption in non-south is growing,” says Bhandari. Some sections of the elite have even started installing espresso machines at home.

Coffee Snobs

The coffee snobs may ‘pish’ at the widely available variants. Mostly educated abroad, they get their gourmet coffees from other sources. In Delhi, Devan’s Coffee and Tea has been around for the last 50 years where the owner blends and roasts 10-12 varieties. Known by word of mouth, stores like these boast of a loyal clientele. “Coffee becomes a part of culture when it turns into a habit,” says Bhandari. Typically spotted with an espresso, macchiato or risotto, these snobs, clearly, are the
keepers of the high coffee culture.

‘Ek Chai Latte Lana’

Reading their HTs and Hindus, meeting old friends for a chinwag or just stopping by after a walk, the older generation that used to earlier perhaps meet at an udipi, now walks in for their mid-morning or evening break to a coffee cafe.
Sometimes a grandchild may accompany them for an odd treat or a math lesson. The elderly prefer a robust cup of masala tea or chai latte over coffee, says Unni, since “they don’t belong to the new coffee generation and don’t need to be snooty about their choice of
beverage”.

The Intellectual/Arty Ones

Generally found in off-beat cafes such as those in Delhi’s Hauz Khas Village and book cafes like Café Turtle. These include
writers, poets, journalists, artists, filmmakers etc… mostly seen smoking on the café’s balcony/terrace, discussing philosophy or art over a cup of cappuccino going cold. The category also includes the kurta-pajama-jhola type who prefer the simple and nostalgic hangouts such as Indian Coffee House in Delhi’s Connaught Place, Koshi’s in Bangalore etc say experts.

Smells Like Teen Spirit

“Fifteen years ago, a 20-something didn’t have a safe place to hang out in other than a pub. Today, the ones driving this café culture are the urban people aged between 16 and 40: university crowd, young professionals and entrepreneurs. Trendy in their lifestyle, education, travel and fashion, it’s the generation that’s driving the white goods market and Indian tourism outside of the country,” says Bhandari. An iPod, chewing gum, braces, colourful slippers and choice of an unusual flavour of beverage or coffee-dessert will mark out the teenage prototype. It’s the largest target group for most cafés. “Close to 25% of CCD’s clients are less than 25 years,” says Ramki. It’s an important segment for café brands given it’s the group’s first transition to a coffee shop, which in the next ten years is set to become fairly large when they start working.

The Expat

Backpack on an empty chair, a book in hand, either reading or observing people while sipping an espresso or macchiato in a quiet corner. Whether it’s a tourist or a sophisticated business traveller to India, he/she will generally seek out international café brands for their caffeine fix. A sense of comfort with certain processes and hygiene being in place drive this choice say experts. “Expats who are already settled in metros and/or are familiar with the city will venture to try home-grown book cafes such as Café Turtle,” says Unni. Keshav Devan of Devan’s Coffee and Tea adds that coffee is more of a winter beverage in India unlike in the west where people consume coffee 365 days a year, every morning. “The look and feel of our stores (Costa) is more vibrant than in Europe since India is a warmer country,” explains Unni.

source: http://www.HindustanTimes.com / Features / February 25th, 2012

Bean Here Bean There

As international coffee chains head to India, let’s not forget the humble filter kaapi, which started it all

The announcement about the arrival of Starbucks in India later this year has been greeted with a sense that the country of tea drinkers is finally set to wake up and smell the coffee. Nothing can be further from the truth. Of course, India consumes about 10 times more tea than coffee per capita and even Djibouti, Kiribati, Moldova and Lithuania drink more coffee per person than us.

India does not even figure in the top 100 coffee-drinking countries. But those nuggets of data only convey a part of the India coffee story. There is yet another statistic from the Coffee Board of India which puts this story in perspective: from the mid-1990s until 2010, India’s coffee consumption more than doubled to about 1,08,000 tonnes from 50,000 tonnes.

It would, however, be doing injustice to the wondrous brew to relegate its significance to mere numbers and ignore the romance behind it. Coffee came to India some 400 years ago and for large sections of the population south of the Vindhyas, filter kaapi is as much a religion as their rice, sambar and curd. Generations of moms have painstakingly brewed decoctions in steel filters every morning and evening and produced steel tumblers full of perfectly steaming hot and frothy servings of the bitter-sweet liquid, without which life would seem incomplete.

Restaurants and street-corner coffee shops added style to the cup by adding a slightly larger but shallow steel bowl to hold the tumbler and to mix and cool the brew before sipping it. Most of us loved the arrangement, especially when the coffee was slurped with a sound effect that would complete the sensory orchestra. One step higher in the pecking order was the restaurant that served coffee in white porcelain cups and saucers. This introduction of class did not ruin the experience. In fact, it could heighten it if the coffee was poured into the saucer and savoured slowly.

But this drink itself was mostly unidimensional. It’s called “filter” coffee as the liquid was brewed in a two-piece steel cylinder where the powder is put in the upper half and hot water poured onto it trickles through tiny holes and collects as coffee decoction in the lower half. The measures could increase or decrease depending on how potent the cup needed to be, with “strong coffee” being the popular keyword to a more bitter and acidic concoction, known for its powers to help defy sleep, to memorise tomes ahead of exams or fight the after-effects of a heavy meal.

That, however, was all the variation there could be, apart from the addition of chicory root powder to milder Arabica coffees to make it “stronger” at a lower cost. Brooke Bond was one major coffee powder brand, which had 70 per cent coffee and 30 per cent chicory. Dozens of regional coffee roasters played on the mix to cater to the taste buds of the more discerning consumers. And then came along Nescafe and Bru, soluble coffee powders, which could be mixed directly with water or milk, doing away with the filtering process. But they could never compare to the power of filter coffee and no self-respecting south Indian coffee home dared depend on them.

All that changed with the arrival of the modern coffee shop in the mid-1990s. The first of this avatar started off as a giant “cyber cafe” on two levels on Bangalore’s snazzy Brigade Road. Every half hour of browsing came with a complimentary latte, a big mug of milky coffee which connoisseurs eyed suspiciously. Contrast that with coffee shops offering free Wi-Fi internet and charging a bomb for a cuppa now and you realise the coffee-Internet story has come a full circle. Be that as it may, it is this outlet that spawned the successful Cafe Coffee Day or CCD chain which is today India’s largest, with more than 1,200 coffee shops.

CCD has been followed by Barista, Costa Coffee, Gloria Jean’s, Coffee Bean & Tea Leaf and several local chains, all of which specialise in a common range: the popular cappuccino (one part coffee, one part milk, one part milk foam), the latte (one part coffee and two parts milk), the espresso (one part coffee, consumed neat), the americano (one part coffee, two parts hot water) and the macchiato (espresso topped with just a spoon of milk foam). And then there are the cold coffees and ice coffees, which are just coffee-flavoured coolers. The cafes have also introduced us to toppings such as cinnamon, nutmeg or chocolate powder that can be sprinkled on cappuccinos or lattes to give them a sweet/spicy twist.

Much of the coffee in these outlets — barring the well-bodied espresso/macchiato crafted from the superior Peaberry — is uniformly unimpressive. A survey conducted four months ago by Harish Bijoor, a Bangalore-based independent consultant and former coffee professional, found 67 per cent of coffee sold at cafes in India were cappuccinos and lattes, or “dumbed down coffees” as he rightly calls them. Another 13 per cent were cold coffees and the remaining 20 per cent were espresso/macchiato/americano, or “real coffees”. But the cafes have been successful because they also offer other beverages such as teas, coolers and snacks, and more importantly have become a hip hangout for the young. Although the coffee is a bit incidental, it has gained because new consumers have been introduced to the beverage who have then pursued it at home and elsewhere.

The venerable Starbucks is set to join these worthies. Quite a few books have been written to explain the success of this Seattle-headquartered chain and while there may not be unanimity over the reasons, the rise of Starbucks coincided with the jump in coffee consumption in the US and the company rode that wave by rapidly expanding from coast to coast while maintaining the consistency of its coffees. I have been to less than half-a-dozen Starbucks outlets in different countries and have not found them any different from coffee shops at home. Friends in the US who have more Starbucks experience call their coffees “average”, “overpriced” or “over-roasted”, among others. Bijoor thinks the price point of Starbucks coffee in India will be a key factor in the chain’s success or otherwise. Price has been a critical element behind the success of CCD and the struggles of Barista, and in that sense, India has already woken up and smelt its coffee, even if it is the dumbed-down variety. Starbucks too can ride this wave if it can offer a bang for the buck.

Filter coffee

* Pick a mild, 100 per cent Arabica/Peaberry powder for a medium-body coffee or a 80-20/85-15 coffee-chicory blend for a darker, deeper flavour.

* Use 3-5 teaspoons (depending on strength desired) of the powder per cup and put the powder uniformly in the top half of the steel coffee filter after removing the plunger.

* Place the plunger atop the powder and pour 100 ml of freshly boiled water per cup onto it and close the filter lid.

* Allow the coffee to brew for 4-5 minutes and percolate into the lower half of the filter. If the powder is coarse, percolation may take longer.

* Pour the coffee decoction or liquor collected in the lower half into cups or mugs and add about 150 ml of freshly boiled milk from a reasonable height to produce a foaming cup.

* Add sugar to taste.

* Never reheat the decoction or heat the milk and coffee again after they have been mixed as the decoction tends to get bitter with reheating.

source: http://www.indianexpress.com / IE> Story / by Y.P. Rajesh / Sunday, February 12th, 2012

Entry of Starbucks in India is really the final stamp of globalisation

Harish Bijoor

And so, Starbucks is here! Well, almost here. The inking of the recent agreement between Starbucks and Tata Global Beverages, and the birth of Tata Starbucks Limited, is an interesting turning point in Indian coffee at large. The entry of Starbucks in India is really the final stamp of globalisation. In many ways, it says that India has arrived, and ready to be delivered. On a platter. With profits to share, sourcing arrangements to capitalise upon, and most certainly profits to repatriate to the mother company as well.

What’s different with the entry of Starbucks in India? After all, Coca Cola was in India for decades, was sent out in 1977, re-entered in 1993. And McDonalds’s unveiled their golden arches in India in 1996. KFC did it noisily in Bangalore in 1995. Why does Starbucks represent more?

Because it is the ultimate representative point of modern retail, which propitiates the “third place syndrome” dominantly. The chain offers, just as any other cafA© chain in the world does, a third place away from home and office, a third place away from school and home. And there are 17,000 plus of these sprinkled across street-corners around the world, making it the most ubiquitous point of retail in the world. Even more ubiquitous than the biggest chain of super-markets of the world.

Just as Coca Cola and McDonald’s, Starbucks represents the capitalist movement of a free world, where eating and drinking are flaunted, touted and branded aggressively at a price and a premium. In many ways these three brands have emerged as the trust-marks of the world. And all three are now in India. Well, nigh nearly there. And, curiously, none of them have needed 100% FDI in retail as a clause to make this happen. And every one of them has aggressive partners. Partners who have and will make money, create local jobs, create local sourcing opportunities and prosperity for all at the end of it.

Starbucks, for many around the world, represents the ultimate climb in the coffee value chain, while many of our Indian companies still struggle at the bottom of the value chain supplying to make the entire enterprise of coffee happen. Look keenly at the coffee value chain. Right at the bottom is the green bean. The coffee-grower sells most of what he grows as green bean. He defines his core-competence to be plantation activity. He defines for himself the tight lines drawn by agricultural practice, planting, nurturing, pruning and plucking. The value realisation for the green bean is therefore the lowest. The pricing is agricultural in its mindset.

Just one rung up in the value chain is the market for the roasted coffee bean. Roast & Ground coffee outlets that offer coffee in this form make more. They invest in a roaster, a grinder and a retail front. The coffee value-add process has begun. This segment is today dominated in south India by as many as 8435 small roasteries in a Dindigul, an Arokkonam and equally in the Holenarsipuras of India.

One rung higher is the terrain occupied by the Roast and Ground filter coffee marketers of this country. This space is dominated by the small and the big. As much as 62,000 tonnes of the coffee we produce in India is used up by the likes of HUL and Tata Coffee in the organised segment, and by a whole host of smaller players with a solid base of local brand equity such as Narasu’s and Leo’s in Tamil Nadu and Cothas in Karnataka.

As we climb higher in the value-chain of coffee, we discover instant coffee. The dominant brands of Nescafe and Bru are growing at a frenetic 18% per annum as the country discovers the joy of convenience coffee that doesn’t take ages to prepare with cumbersome devices such as the coffee filter and percolator.

Thus far the value chain of coffee has been of a solid avatar. Time to move the chain over to the liquid avatar. Out here are the vending machines that dispense coffee, the home and office coffee-maker and more.

In many ways the future is liquid, and not solid. Liquid coffee has this exciting habit of delivering bigger margins and bigger degrees of made-to-order satisfaction to consumers alike. And that’s a combination no one will ignore. Liquid coffee, through vending machines for outdoor locations, and home coffee makers for in-home and in-office locations, make coffee climb the value chain higher.

And that’s not the end of the coffee value chain journey. The sit-down and take-away cafes represent the ultimate peak in this value chain. Here, a coffee you could make at home for 2.60 per cup (with foam and froth and all), will cost you 50 or 100 or, in the future, even 150, if you will. The entry of Starbucks in many ways creates a caste system in the cafA© chains within India at large. You will have coffee that will come at 1$ a cup (CafA© Coffee Day), $2 a cup (Costa Coffee) and maybe at $3 a cup (Starbucks?).

With the entry of Starbucks in India, the coffee-value chain has touched the peak it has always wanted to. But never got to.

(The author is the Ex-VP, Tata Coffee Limited and ex-member of the Coffee Board of India)

source: http://www.economictimes.indiatimes.com / THE ECONOMIC TIMES / Home> Opinion> Guest Writer / February 04th, 2012

Tata Global Beverages Forms JV With Starbucks Group

Tata Global Beverages Limited through its subsidiary, Tata Coffee Limited has formed 50:50 JV – Tata Starbucks Limited with Starbucks group.

The first cafe will open by August-September and will be named – Starbucks Coffee – A Tata Alliance. The JV plans to open 50 outlets in the initial phase, beginning with Mumbai and Delhi and expand into other cities and Tier-II towns. The initial investment will be R400Cr ($80Mn).

Luthra & Luthra Law Offices advised Tata for the deal.

According to MOU, Starbucks will set up stores in the Tata group’s retail outlets and hotels, besides sourcing and roasting coffee beans from Tata Coffee’s Kodagu facility.

Starbucks, which runs over 16,000 stores worldwide, has been in talks with the Future Group, Reliance and Jubilant for an entry into India, but none of those discussions fructified.

Headquartered in Seattle, Starbucks operates in more than 50 countries. It has been sourcing coffee beans from India for the last seven years. Starbucks sells a wide variety of coffee and tea products with a range of complementary food items, primarily through retail stores.

Tata Global Beverages Limited engages in the development, marketing, and distribution of tea products. Tata Coffee Limited engages in growing, curing, manufacturing, marketing, retailing, and exporting coffee and tea in India and internationally.

The company produces more than 10,000 MT 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 6000 metric tones.

It exports green coffee to countries in Europe, Asia, Middle East and North America. In 2006, Tata Coffee acquired Eight ‘O Clock Coffee Co., a segment leader in the US coffee retail market for US$ 220 million.

Last August, Tata Global acquired 31% stake in US-based Rising Beverages, which is known for vitamin water based products. It had also signed a MoU with Kerala Ayurveda to form a joint venture for product development.

In 2010, the company formed a joint venture firm with Pepsico – NourishCo Beverages, to produce non- carbonated ready to drink beverages.

In this segment major players include Barista (200 outlets), Cafe Coffee Day (1,040 outlets) and Costa Coffee and others (100).

source: http://www.dealcurry.com / Home> Category: Mergers & Acquisitions> Industry: Agro/ Food & Beverage / by Charmi Gutka/ January 31st, 2012