The aroma of freshly brewed coffee captivates a new generation of Indians, driving a significant shift in the country’s beverage landscape. As young people embrace the invigorating ritual of coffee, one homegrown brand, Vintage Coffee, is trying to capitalise on this burgeoning trend. Established by Tati Balakrishna, a seasoned coffee veteran who spent over 30 years in the coffee business, Vintage Coffee has set its eyes on the domestic market after making a mark in coffee exports.
Balakrishna notes that, unlike older generations who enjoyed a cup or two of filter coffee in the morning, young consumers prefer to have soluble coffee throughout the day. “This generation takes coffee throughout the day,” Balakrishna, Chairman and Managing Director of Vintage Coffee, told businessline over phone from Mumbai.
This shift in consumption patterns, coupled with increasing coffee adoption in the Northern, Eastern, and Western regions, has contributed to the market’s impressive growth.
“I worked with Tata Coffee for 20 years and for a start-up for about three years. But I always wanted to set up my own. I started a chicory company in 2013 and ran it for three years. With investment support from a few friends, I started Vintage Coffee in 2017 and started production a year later. We produced over 800 blends in just six months,” he said.
“The Indian coffee market is undergoing a dynamic transformation, fueled by a generational shift in preferences. While tea has traditionally dominated the Indian beverage scene, young people are increasingly turning to coffee, seeking stimulation, convenience, and a modern coffee experience,” Balakrishna observes.
This trend is reflected in the surge in coffee consumption, estimated to have jumped from 55-60,000 metric tons pre-COVID to 70-80,000 metric tonnes now.
Vintage Coffee is strategically positioned to cater to this evolving market. The company is pursuing a dual strategy, combining direct-to-consumer e-commerce sales with the establishment of a nationwide cafe network. This month, Vintage Coffee will launch its products on e-commerce platforms, bringing its high-quality instant coffee directly to consumers’ doorsteps.
Cafe business
The company’s cafe initiative is also gaining momentum. Vintage Coffee’s maiden cafe, launched recently in Navi Mumbai, marks the first step in an ambitious expansion plan. The company intends to open two more cafes in Mumbai and one each in Gurugram and Pune, with a potential outlet in Hyderabad on the horizon. Operating on a master franchise model, Vintage Coffee minimises its investment while ensuring operational efficiency.
Currently, exports constitute the bulk of the company’s revenue, comprising 85 per cent of its ₹131 crore turnover last year. “We are targeting a turnover of ₹300 crore this financial year. We are going to increase the share of domestic business, besides launching e-commerce sales in the next few weeks. These high-margin businesses are expected to drive our turnover this year,” he said.
Operating a single plant near Hyderabad with a capacity of 4,500 metric tons, Vintage Coffee plans to invest $2 million to increase production to 6,000 metric tonnes next year.