The Allana Group, an exporter of coffee from India for the past 40 years, last week announced its foray into the domestic market to meet the growing demand for the beverage. The company said it will supply its premium coffee to hotels, quick service restaurants, cafes and coffee startups.
“We already have tie-ups with 7-8 coffee chains,” said Asim Allana, a young man from the promoter family leading the coffee business and its entry into India. Until now, the Allana Group was exporting coffee to the Nordics. Country, America and Middle East.
Allana said the trigger for entry into the Indian market was the apparent rise of the coffee culture here. The market has been flooded with new packaged coffee brands and cafes over the years, especially with the advent of Starbucks in India.
The pandemic gave further impetus to development. Indian students studying abroad returned during the pandemic. Allana believes that “coffee culture”, is a Western import, adding that they were exposed to cafes and craved brewing. “Cafes abroad are specifically designed to be used as a place for a generation to sit there and use free WiFi. Meet up socially,” he said.
Bharat Sethi, founder and chief executive officer (CEO) of Internet-first coffee brand Rage Coffee, agreed. He said that the cafe culture has evolved a lot and people now know what a good cup of coffee really means. However, he does take credit for building a massive way to upgrade people to fine coffee through his packaged craft brews, which balance quality, convenience and affordability. Cafes are expensive, he said.
Sethi said that for a brand to be launched in 2019, the pandemic increased sales of Rage Coffee as offices and cafes were closed and coffee drinkers were exploring alternatives. “We have grown 500% year-on-year since launch, with significant demand – about 60% – coming from smaller cities,” he said.
Allana recognized that work from home culture also increases the consumption of coffee at home. Also, the boom in domestic tourism due to the pandemic is opening up tourist destinations for coffee. “Tourism and coffee go hand in hand. The demand for coffee is now coming from tourist destinations like Jaipur and Udaipur.”
Allana credits the growing craze for coffee to the availability and affordability of different types of coffee. “Tea was for our parents and grandparents. The huge growth in coffee is coming from consumers between the ages of 20 and 40. This is the commercial drink of the future,” he said.
Coffee chain Barista may be ahead of its time when it launched more than 20 years ago—as tea was still a popular beverage and a habit that expensive coffee couldn’t break. But Cafe Coffee Day and other cafes emerged and prepared the ground for the creation of coffee culture in India.
Currently, the market is flooded with new-age coffee chains as well as packaged artisanal brands such as Blue Tokai, Third Wave Coffee, Dope Coffee and Sleepy Owl, which are all set to expand. Dope Packaged Coffee is opening experience centers in Mumbai and Delhi. Blue Tokai is eyeing markets outside Delhi-NCR. Canadian QSR chain Tim Hortons is also opening its first outlet in India.
Sales of coffee machines have also improved. Speaking to Mint last week, Ravi Saxena, founder and managing director of Wonderchef Home Appliances, said that their newly launched coffee machines are priced between 3,000 more 15,000 have been sold like hot cakes. Aseem Allana believes that affordable coffee machines are aiding in the growth of the market.
Meanwhile, Rage Coffee, which last month had cricketer Virat Kohli as its brand ambassador, is selling complex flavors like Butterscotch Delight, Vanilla Bubblegum and Citrus, which Sethi said are game-changers as they offer cafes at affordable prices. give experience. ,
The attractiveness of the Indian market has prompted Asim Allana to promise 50% of its coffee revenue over the next five years to come from domestic operations. “For the first 40 years we were in coffee exports; For the next 40, we will focus on the domestic market,” Allana said.
Shuchi Bansal is the Media, Marketing and Advertising Editor of Mint. Simple post will look at pre-assing issues related to all three. Or just fun stuff.