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tata consumer products: Tata Consumer Products plans to expand Tn | Chennai News

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Chennai: As part of its aggressive push into the coffee segment, Tata Consumer Products is expanding its Tamil Nadu-focused strategy to other southern states like Karnataka and Andhra Pradesh, while pushing a differentiated product plan for the rest of India. “Tamil Nadu is the strongest coffee market in India, so we are prioritizing this market first, but we are also expanding our presence in Karnataka and Andhra Pradesh,” speaking to TOI, Puneet Das , President – Packaged Beverages, (India & South Asia), Tata Consumer Products (TCP) said. The company, which entered the coffee market in the fiscal year 2015-2016, is following a differentiated product plan for southern markets and the rest of India to increase its household penetration. “We have expanded both our distribution and our product portfolio over the past two years and the mass market is primarily instant coffee, which is also the fastest growing segment,” Das said. The instant coffee segment in Tamil Nadu alone fell from Rs 160 crore in Q3FY20 to Rs 174 crore in Q3FY21.
Meanwhile, the conventional coffee category has grown from Rs 36 crore to Rs 33 crore over the same period. TCP’s coffee volumes increased 65% in Q3FY21 with the number of resellers more than doubling in TN, from 15 in Q3FY20 to 40 in Q3FY21. To increase its footprint, TCP uses its tea expertise in the coffee segment. “Tamil Nadu has a high concentration of hot tea shops and we are very strong in tea so we tapped into cafes where we build brand image by leveraging our tea learning,” Das said. In addition to mass-market instant coffee, TCP also offers gourmet products like its American Eight O’clock brand and Sonnets craft coffee through direct-to-consumer channels.