This story is from November 30, 2015

Tata Global Beverages enters instant coffee business with Tata Coffee Grand

Tata Global Beverages on Monday unveiled Tata Coffee Grand developed in association with its subsidiary Tata Coffee to compete in the instant coffee market, which is dominated by Nestle’s Nescafe and Hindustan Unilever’s Bru.
Tata Global Beverages enters instant coffee business with Tata Coffee Grand
MUMBAI: Tata Global Beverages on Monday unveiled Tata Coffee Grand developed in association with its subsidiary Tata Coffee to compete in the instant coffee market, which is dominated by Nestle’s Nescafe and Hindustan Unilever’s Bru.
Tata Global Beverages hopes that by muscling into the Rs 1,300 crore branded instant coffee market it can boost the earnings of its coffee division, which currently accounts for 18% of its Rs 7,833-crore revenues.
Tata Global Beverages’ plan is to double the coffee unit’s revenue in the near future. Bengaluru-based Tata Coffee already has a presence in instant coffee through Tata Café, Tata Kaapi and Mysore Gold.
A 50gm Tata Coffee Grand is priced at Rs 130 in the west, almost the same rate of Nescafe Classic. However, coffee brands are tad cheaper in South, the biggest coffee consumption market in India, and where consumer preference is changing from roast and ground coffee to instant coffee.
In fiscal 2015, instant coffee sales helped Tata Coffee to improve its revenues even as its coffee plantation sales were impacted due to seasonality and pest infestation at tea plantations, translating into lower crops.
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About the Author
Reeba Zachariah

Reeba Zachariah is assistant corporate editor at The Times of India, Mumbai. She has been covering large Indian business houses such as the Tata Group. She also reports on a host of sectors like hospitality, retail, travel, liquor and consumer durables. She has been writing on mergers and acquisitions and private equity.

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