The beverage arm of Tata Group, Tata Global Beverages (TGBL) — the second largest player in the world in the branded tea category — has announced a foray into the branded instant coffee category under the brand name Tata Coffee Grand.
After leading the domestic market with its iconic Tata Tea, the company has taken a strategic step to leverage its product, marketing and retail expertise to enter the branded coffee space in India, the company said in a statement.
“The coffee beans will be sourced primarily from Tata Coffee’s own plantations in South India. The product is an innovative blend of the finest coffee powder & decoction crystals which gives consumers a ‘best in class’ taste experience in the instant coffee category,” Sushant Dash, Regional President- India, Tata Global Beverages, said.
Globally, TGB has brands such as Eight O’ Clock Coffee, Map Coffee and Grand in its portfolio. The initial plan, reportedly, was to extend subsidiary Tata Coffee’s packaged coffee bean brand (Mr Bean) into the instant coffee space in India. However, this was waved out for a new product altogether.
Tata Coffee Grand will be available in 50 gm jar and pouches. “A 50 gram jar of coffee will cost Rs 130 in the north, east and western regions, while the pack will be priced about 7-8 per cent lower in the southern markets in line with competition,” Dash added.
The coffee category in India is poised to grow in the coming years and is estimated at Rs 2,500 crore, out of which Rs 1,300 crore is the instant coffee market, he informed.
According to a study conducted by the International Coffee Organization, India is the fifth largest coffee producer in the world. Karnataka alone is responsible for producing 70% of the total coffee output of the country.
In the instant coffee space, Tata Coffee Grand will compete with Hindustan Unilever’s (HUL) Bru and Nestle’s Nescafe. Nestle India dominates the Indian coffee market, with Nescafe accounting for nearly 51 per cent of the market share while Bru’s share is around 49-50 per cent, as per industry estimates.