News: Coffee Day opens private label tap with water brand
(DNA 03/01/2007) Mumbai - Café Coffee Day, India’s largest coffee chain, will expand its offerings in the water business and cash in on the potential provided by private label products.
Following its recent entry into the premium-priced bottled water segment under the Coffee Day brand, the company now wants to showcase more products, including flavoured water.
Naresh Malhotra, CEO, Cafe Coffee Day, told DNA Money: “When you are a strong chain with a nationwide presence, promoting private labels make more sense than blocking premium retail space by keeping someone else’s products.”
Cafe Coffee Day also sells other products like cookies, wafers, mints and other merchandise. These products are sold exclusively under the Café Coffee Day brand and only through its cafes.
Café Coffee Day bottled water is priced at Rs 15 for a 500 ml bottle. Malhotra said: “It is not the same as buying a bottle of water from a paan shop or something like that.
Offering an environment like ours is a costly affair. The premium pricing for our bottled water was arrived at after taking all this into consideration.”
Added Malhotra: “We expect at least 10% of the 75 million walk-in customers to buy our private labelled bottled water.” The estimated revenue from the water foray is Rs 7-8 crore in the first year of its operations.
Targeting a pre-summer launch, the flavoured water drinks will be positioned as a cooling-off beverage providing respite form the summer heat.
He however, refrained from divulging further details on the variants, pricing and branding of these new introductions.
Catering to their requirements in south India - primarily Bangalore and Chennai - the coffee café chain has already set up in-house bottling facility at Chickmangloor, Karnataka.
It is outsourcing from third party manufacturers in other places. Café Coffee Day is a division of India’s largest coffee conglomerate, a Rs 300 crore ISO 9002 certified company Amalgamated Bean Coffee Trading Company Ltd, popularly known as Coffee Day.
Its different divisions include Coffee Day Fresh n Ground (which owns 354 Coffee bean and powder retail outlets), Coffee Day Xpress (which owns 341 Coffee Day Kiosk), Coffee Day Take away (which owns 7,000 vending machines), Coffee Day Exports and Coffee Day Perfect (FMCG Packaged Coffee) division. In terms of international presence, CCD has a Café in Vienna, Austria and is planning to open in the Middle East, Eastern Europe, Eurasia, Egypt and South East Asia in the future.
Following its recent entry into the premium-priced bottled water segment under the Coffee Day brand, the company now wants to showcase more products, including flavoured water.
Naresh Malhotra, CEO, Cafe Coffee Day, told DNA Money: “When you are a strong chain with a nationwide presence, promoting private labels make more sense than blocking premium retail space by keeping someone else’s products.”
Cafe Coffee Day also sells other products like cookies, wafers, mints and other merchandise. These products are sold exclusively under the Café Coffee Day brand and only through its cafes.
Café Coffee Day bottled water is priced at Rs 15 for a 500 ml bottle. Malhotra said: “It is not the same as buying a bottle of water from a paan shop or something like that.
Offering an environment like ours is a costly affair. The premium pricing for our bottled water was arrived at after taking all this into consideration.”
Added Malhotra: “We expect at least 10% of the 75 million walk-in customers to buy our private labelled bottled water.” The estimated revenue from the water foray is Rs 7-8 crore in the first year of its operations.
Targeting a pre-summer launch, the flavoured water drinks will be positioned as a cooling-off beverage providing respite form the summer heat.
He however, refrained from divulging further details on the variants, pricing and branding of these new introductions.
Catering to their requirements in south India - primarily Bangalore and Chennai - the coffee café chain has already set up in-house bottling facility at Chickmangloor, Karnataka.
It is outsourcing from third party manufacturers in other places. Café Coffee Day is a division of India’s largest coffee conglomerate, a Rs 300 crore ISO 9002 certified company Amalgamated Bean Coffee Trading Company Ltd, popularly known as Coffee Day.
Its different divisions include Coffee Day Fresh n Ground (which owns 354 Coffee bean and powder retail outlets), Coffee Day Xpress (which owns 341 Coffee Day Kiosk), Coffee Day Take away (which owns 7,000 vending machines), Coffee Day Exports and Coffee Day Perfect (FMCG Packaged Coffee) division. In terms of international presence, CCD has a Café in Vienna, Austria and is planning to open in the Middle East, Eastern Europe, Eurasia, Egypt and South East Asia in the future.
posted by InCar Group Press Room at 21:30
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