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Too hot to handle

Banikinkar Pattanayak

Posted: Tuesday, Jan 29, 2008 at 2355 hrs IST
Updated: Tuesday, Jan 29, 2008 at 0012 hrs IST


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: opening retail outlets at many new and upcoming malls.

Global competition is one thing. If the largest integrated coffee company in Asia, which happens to be a homegrown company, throws its hat into the ring, all calculations tend to go awry. Tata Coffee did just that when it announced the launch of Tata Mr Bean Coffee Junction, some years back. Now the company, which had a substantial stake in the coffee pub chain, Barista, is reportedly eyeing a bigger chunk of the action, and in the process, a larger share of the market.

In such a scenario what do the trailblazers do? Are Barista and Café Coffee Day (CCD)—the two brands that shaped the outdoor coffee culture in the country and together control about 75% of the organised coffee chain market currently—ready to stand up to the emerging challenge?

Ask about competition, and everybody is at their eloquent best. Says Simran Sablok, general manager, marketing, CCD, a chain set up by Amalgamated Bean Coffee, “At CCD we have never been competitor-focused; we have the customer on our minds… always.”

On its part, Barista has its own agenda. “We must remain true to our consumer offering,” says Rini Dutta, vice-president, marketing and product development, Barista, which changed hands several times since inception. “This impacts the way we maintain our store look, the new products launched and our service standards. Our focus will be on innovation.”

The battle lines have been drawn. And the signs are right before your eyes.Visit a Barista outlet for proof. The change is on the wall, literally. Fresh colours, new paintings will greet you. But yes, the past isn’t yet dead.

When Barista set up its first outlet seven years ago, the differentiated product experience coupled with great media buzz helped the brand stand out and create a niche for itself. Critics did predicted its doom, pointing to the fact that the coffee trend may not pass the test of time in a country hugely tilted towards tea.

True, the challenges were immense. Though Indians had been introduced to a global lifestyle, the idea of drinking coffee out of home needed some hardsell. Says Partha Dattagupta, CEO, Barista India, “This meant you needed time to break even because footfall was low. Moreover, each coffee bar involved a fair amount of investment—in not just the product but in creating the right ambience.” But executives at Barista also knew that they could turn the corner if...

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