India Coffee

1. AMITY RESEARCH CENTERS
VS. The Branded Instant Coffee Market Brewing Hot in India
MST Week 5 – Dec.20.2012
Presented by :
Frank Zhang & Haiyang Wang

2. (Do you like coffee or tea?)
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3. “Coffee is a lifestyle, tea is a beverage. ”
Said by Harish Bijoor (Bijoor), CEO of Harish Bijoor Consults
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4. Table of Contents
• Introduction
• The Organized Indian Coffee Market
• HUL vs. Nestle: The Leadership War
• What is the Prospective of Indian Coffee
Market?
• Discussion
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5. Introduction
Tea is a common
man beverage,
while coffee is
more popular in
the three
Southern states
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6. Indian Coffee Market
50,000 tones in the mid- In the 1960s, 3,700
1990s coffee brands in India
→ 108,000 tones in 2000
Since the 1960s, The In the 1980s, domestic
Brooke Bond India consumption was
Limited (BBIL) was the encouraged due to
major coffee brand increased production and
low ICA quota
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7. Indian Coffee Market (cont.)
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8. Indian Coffee Market (cont.)
Market Share in Mixed Instant Coffee
Segment in 1997
7%
50% HUL's Bru
43% Nestle's Sunrise
Others
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9. The Leadership War
HUL vs. Nestle
1962:
1912: Delux Green Label in R&G
1984:
Brooke Bond & Co. India coffee segment
Acquired by Unilever
Limited was established 1968-69:
Bru in instant coffee segment
1992: 1994: 1996:
Acquired Kothari BBIL merged with BBIL merged with
General Food Lipton India HUL
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10. The Leadership War
HUL vs. Nestle(cont.)
1959: 1963:
Nestle entered Nescafé was
India launched
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11. The Leadership War
HUL vs. Nestle(cont.)
The world’s largest
VS. coffee chain
company, Starbucks
Coffee, announced its
plan to make debut in
India in association with
Tata Coffee in the late
The India coffee market has 2011
the potential to touch
US$900 million with a total
of 5,000 cafes by 2012
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12. Prospective of Indian Coffee Market
• Continuous competition between HUL and
Nestle
• Entry of international retail coffee chains, e.g.
Starbucks and Dunkin’ Donuts
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13. Marketing Strategies
Coffee chains to battle
‘Bru Coffee World’ Outlet
Starbucks
A Tata Alliance
Dunkin’ Donuts
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14. HUL’s New Products
“Bru Gold” “Bru Exotica”
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15. Discussion
• Will Starbucks play a dominant role in Indian
Coffee Market in the future? Why?
• What are the possible strategies for Nestle
or HUL to gain an absolute market advantage?
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16. AMITY RESEARCH CENTERS