Coffee comes in from the cold

NEW DELHI: It has long been one of the most consumed beverages in south India; now, it is gradually becoming the beverage of choice across different age groups across the country. A drink that was symbolic with a stainless steel filter sitting in the kitchens of south India now has exotic avatars that seem to elbowing out teacups from at least the youth hangouts across the country.

Most of the production by the sixth-largest coffee producer in the world happens in south India. As is well-known, till the mid-1990s, most of the consumption happened there too, with the rest of India preferring cuppas of tea.

But then, young urban Indians—looking for new social hubs—discovered the charisma of the coffee house. Not the old dingy places where doddering bearers in dirty turbans brought around filtered coffee in cracked cups, accompanied by saucers of samosas and biscuits. These were fun hangouts devised by savvy marketing companies; here, coffee frothed forth in enticing forms and was accompanied by board games with the latest hits playing in the background.

Primed by Hollywood films where much of the action revolves around the local cafe, India’s youngsters bit the bait. Coffee became an excuse for conversation, and the cafe, the new canteen. Not just in south India, where everyone downed umpteen cups a day anyway, but across the country. Annual domestic consumption jumped from 55,000 tonnes to 1,00,000 tonnes.

The growth came largely from the North. It wasn’t just cities like Delhi and Chandigarh that fuelled the growth–although they are definitely helping. According to the Coffee Board of India, the northern states are currently contributing more than 50 per cent of the overall growth in coffee consumption. A major factor behind this is the growing number of cafe outlets which act not just as hangout zones for the young and upwardly mobile but also as platforms to network and discuss issues that concern the local populace.

The growing popularity of coffee among consumers of all ages can be gauged from the fact that in less than a decade, the number of standalone cafes have mushroomed from less than 100 to over 4,000 in India. Dominated so far by home grown retailers such as Cafe Coffee Day and Barista Coffee Company Limited–which is now owned by Italy’s Lavazza–the local coffee retailing market has in the last few years also attracted foreign players like Gloria Jean’s Coffees,   UK-based Costa Coffee and US’ Coffee Bean and Tea Leaf to set up shop here.

With the government having notified 100 per cent foreign direct investment in single-brand retail, the coffee industry expects to see a rush of new global players entering the domestic market while the existing ones expand their operations. The US-based Starbucks is likely to be the first off the blocks and is expected to make a formal announcement on its proposed partnership with Tata Coffee Limited soon.

“Our basic mission is to convert north India into a coffee drinking region. Coffee, as a drink, has already gained a lot of traction in the northern states. We are now looking to piggyback on the growing coffee drinking culture to make it into an in-home experience from an out-of home experience,” says Anil Bhandari, president, India Coffee Trust, and member, Coffee Board of India.

It is with this mission in mind that the Coffee Board and India Coffee Trust, along with private coffee players like Tata Coffee Limited and Cafe Coffee Day, is holding the fourth edition of the India International Coffee Festival in New Delhi. Running from January 18 to 20, this is the first time that the festival is being held outside its traditional base of Bangalore, and will showcase to the coffee aficionados and connoisseurs the myriad opportunities that the Indian coffee industry offers.

According to Jawaid Akhtar, chairman, Coffee Board, the domestic market for coffee is showing robust growth trends particularly in non-conventional coffee drinking areas. “We are holding this event in the heart of India to capture the business opportunities in coffee retail to create value across the chain,” he says.

Espousing similar views, K. Ramakrishnan, president-marketing, Cafe Coffee Day, says: “The festival will definitely help put Delhi on the coffee map of India,” but adds: “In terms of promoting coffee drinking in homes, it may not bring about huge change just yet.”

Primarily a business-to-business event, the three-day festival will have something for Delhi’s common man too. Apart from the regular seminars, conferences and showcasing of the latest technologies in the coffee industry, the event will also have skill-building workshops and coffee roasting and tasting sessions by experts and trainers.