The aroma of coffee has just got stronger. Even before Starbucks Coffee has launched its first outlet, other international chains are waltzing in, trying to gain ground.
Australia's premier coffee company – Di Bella Coffee has recently set up an Indian subsidiary, launching its first outlet in Mumbai. The $40-million coffee chain is also brewing up plans to launch an online store — mydibellacoffe.com to supply coffee right at the doorstep of consumers.
Mr Sachin Sabharwal, MD, Di Bella Coffee India, said, “In Australia, we get almost 25 per cent of the turnover from online sales; in India we may take longer to achieve that target. We would expect our customers to pay on delivery and even through credit and debt cards. The online business would be targeted at corporate offices, homes and hospitals. Our company vans would be delivering our coffees across the city.”
Di Bella Coffee is the latest entrant in the premium coffee segment offering coffees from across different regions of the world with prices ranging between Rs 90 to Rs 170. It would be competing with premium coffee chains like Costa Coffee, Coffee Bean and the soon to be launched, Starbucks Coffee.
“In the past five years, coffee retailing has been growing at 30 per cent CAGR and there are enough coffee drinkers in India although it may be (predominantly a tea-drinking nation,'' says Mr Sabharwal.
However, the coffee chain is making sure that it has non-coffee revenue options as well to entice consumers. For instance, it is looking at merchandising and planning to sell crockery too at its stores.
Di Bella Coffee intends going pan-India in the next three years.
Home-brewed chains
Meanwhile, domestic chains are not ignoring the premium coffee category either. Café Coffee Day (CCD) is strengthening its lounge offering. “We may be an Indian mass youth brand but we are also present at the premium segment with our lounges which are more indulgent with its offerings. The entry of big players like Starbucks will only help in building the category further,” says Mr K. Ramakrishnan, President- Marketing, CCD.
CCD is also looking at non-coffee revenue streams and has recently introduced its private label for fruit based drinks under the brand – WTF (Whattefun). CCD has also recently enhanced its food and tea portfolio. “We are funded by a clutch of private equity players and will continue to open a café a day,” added Mr Ramakrishnan.
Even the Italian coffee major Barista has decided to bring in a more premium brand under Lavazza to get better margins in the Indian market.