Coffee debut on the cards

The next step for the Godrej group could be coffee. Even as Godrej Hershey Foods & Beverages, earlier Godrej Beverages & Foods, gets ready for a big-bang entry in the chocolate category, it is simultaneously beefing up its existing beverage business portfolio.

After being present in the packaged tea segment for a while, the company is now eyeing the branded coffee segment in the country. A Mahendran, mentor director, Godrej Hershey Foods & Beverages, said the company was looking at both the roasted coffee beans segment and the ready-to-drink market.

Analysts see the move in line with the growing popularity of coffee drinking in India, post the emergence of the coffee bar culture.

The company will also be tapping the premium consumer category through enhanced offerings in its tea portfolio. The company is planning to enter the iced tea and green tea segments over the next few months.

"Both the products are under development. We are looking at launching organic green tea, and once we finalise the sourcing, we will launch the product soon," said Mahendran.

The plans for coffee, he said, were still at a preliminary stage. In 2006-end, Tata Tea, the second largest branded tea company, introduced a range of green teas under the Tetley brand. To make it more palatable to first time consumers, the company has launched flavoured variants of the tea as well. The iced tea segment in India has been a slow starter in India. Dominant players such as Hindustan Lever (HLL) are admitting that it would be reworking its iced tea strategy in India. The company operates the Lipton brand in a distribution collaboration with Pepsi. Nestle too has met with limited success for its Nestea range in India so far at the retail level.

HLL is also working at expanding its beverage portfolio. The company has over the last few months introduced flavoured tea bags under the Taj brand. In coffee too, it has launched single serve cappucino mixes under the Bru brand. The company is also believed to be jazzing up its Taj Mahal portfolio and will soon launch a range targeted at upmarket consumers.

Even local dairy major, Amul launched its ready to drink cold coffee, early this year.

Meanwhile, even regional brands are tapping in on the growing consumer demand for differentiated beverage offerings.

The Mumbai based Sapat group has launched flavoured teas, but in traditional Indian flavours and is looking at launching further variants in teas.

The Girnar group is also finalising its new product line-up, which apart from iced teas, also includes soups, milk flavour mixes and other beverages.