Category Archives: Coffee, Kodagu (Coorg)

Starbucks arrives in namma Bangalore

Planning to open two more stores in the city by year-end. Coorg coffee on menu.
StarbucksKF24nov2013
Coorg and Chikmagalur will soon find a mention in Starbucks stores worldwide.

The US coffee chain is planning to sell arabica coffee sourced from the estates of Coorg and Chikmagalur in its global stores.

Called India Estates Blend, this medium roast coffee was launched last month to be sold in packages of 250 gms at the 30 Starbucks stores in Mumbai, Pune, NCR and Bangalore.
It is sourced, roasted and packaged in India.

John Culver, group president, Starbucks China and Asia Pacific, channel development and emerging brands, says the company would “take this Indian coffee to our 17,000 stores globally.”

Explaining that Starbucks is evaluating plans to make India Estates Blend available globally, Culver says they source coffee from 30 countries.

“Over the last year, we discovered there is very high quality arabica available in India. So it will be good to take India coffee, blend it with other coffees, and sell in the global stores.”

Operational through a 50:50 joint venture between Tata Global Beverages and Seattle-based Starbucks Corporation, Tata Starbucks has also set up a coffee roasting and packaging plant at Kushalnagar in Coorg with a capacity to produce 375 metric tonnes.

India Estates Blend is the second blend brought out by the firm after the India Espresso Roast, that is sold at their outlets across India.

Culver wants India to be one of the top 5 markets for Starbucks globally. Speaking during the launch of the group’s flagship outlet in Bangalore, Culver says Bangalore reflects “our commitment to expand across India.”

Entering India in October 2012, the company operates 29 other stores across NCR, Mumbai and Pune.

Starbucks is planning two more stores in Bangalore before December-end, at Phoenix Market City and Orion Mall. The management believes they can build a ritual of Starbucks in the daily lives of Indians.

Brand consultants feel despite the cluttering in the market in Bangalore, which is the home for Cafe Coffee Day, Starbucks will establish its niche, simply on the basis of its image.

A cuppa numbers
India is a leading exporter of coffee. In the coffee year October 2012-September 2013, India exported 3 lakh tonnes of coffee, as per the Coffee Board. The US and EU are main markets for Indian coffee.

The per capita consumption of coffee in India is low, at 90 grams. In Brazil, another leading coffee exporter, per capita consumption is 6 kg, as per data by Care Research.

The organised cafe market across India boasted sales of Rs 1,246 crore in 2012, and is expected to touch Rs 2, 222 crore by 2017, as per consulting firm Technopak.

The number of cafes in the country will grow from 1,950 last year, to 2,900 by 2017.

Price of coffee minus taxes, can range from Rs 70-80 for a simple cappuccino or latte, to over Rs 180-200 for flavours like hazelnut, or cinnamon, or caramel.

Currently, Cafe Coffee Day is the leading player with 1,498 outlets across India. It has plans of reaching 2,000 outlets by 2015.

source: http://www.dnaindia.com / DNA / Home> Bangalore> Report / by DNA Correspondent, Place:Bangalore, Agency:DNA / Saturday, November 23rd, 2013

Starbucks CEO: Ratan Tata’s grace, wisdom moved me

India is the only major market in the world where Starbucks has been able to source and roast coffee beans locally.
India is the only major market in the world where Starbucks has been able to source and roast coffee beans locally.

New York :
Starbucks CEO Howard Schultz has voiced his admiration for industrialist Ratan Tata’s “grace” and wisdom, saying he was moved by the business icon’s words during the launch of the coffee chain’s flagship store in Mumbai last year.

“At the celebratory dinner the night of the Mumbai (store’s) opening, Ratan Tata offered a toast that really moved me,” Schultz writes in an essay in the book ‘Reimagining India: Unlocking The Potential of Asia’s Next Superpower’, edited by global consulting firm McKinsey.

Schultz recalls that while describing Starbucks’ India launch and Tata’s remarks at the celebrations later to a gathering of his company officials in the US, he even began to cry and was overpowered by emotion.

“A few weeks after returning from the opening of our Mumbai store, we held one of our big open forum meetings where we get the entire company together. And as I tried to describe that moment for everyone, something came over me. I started to cry. It just hit me emotionally.

“In India, we’d had a chance to do something extraordinary, something truly world class. And I am excited that we have a chance to grow and give back in a land where so much opportunity lies ahead and to contribute to making it a little better place than the one we found,” Schultz said.

Tata’s remarks on the night of the Mumbai opening were “perfect and so heartfelt,” Schultz said in the essay, adding that he considers Tata to be a “man with so much grace.

“I could sit and listen to Ratan Tata for days on end. He has so much wisdom and insight not only about India but about the world,” he said.

The book is a compilation of over 60 essays on India’s challenges and opportunities written by CEOs, academicians, economists and historians, including Wipro chief Azim Premji, Microsoft founder Bill Gates and India’s chess legend Viswanathan Anand.

In his toast, Tata had said in his “dry, understated way” that the Tata group has had a bit of success in the various endeavours it has undertaken over the years.

“We have partnered with some good global companies. But I have never had the kind of recognition I have received from this relationship with Starbucks. People I have never met stop me on the street just to congratulate me.

“And what I have learnt from this relationship is that Starbucks is far more than just a company that sells coffee,” Tata had said.

Schultz said his company has developed an “incredible relationship” with the Tata organisation and he cannot imagine bringing Starbucks to India without the assistance it has received from Tata.

Schultz also said India is the only major market in the world where Starbucks has been able to source and roast coffee beans locally.

The company worked with Tata officials on an India-only espresso roast designed specifically for the Indian market.

Schultz said people in Starbucks’ coffee department were not “exactly thrilled” when he told them he was looking at a different approach to sourcing coffee and roasting process under the partnership with Tata for India.

“They were more sceptical when I said we want to create a different blend of coffee for India,” he said, adding that his team was incredulous when he said the India blend was not going to be roasted by the Starbucks team, a first in Starbucks’ 42-year history.

Schultz said to get the blend he wanted for India, “we’d have to share with Tata some of the family jewels — roasting secrets we’ve perfected over four decades and guarded very closely.

“It was a real test of our trust in our new partner,” he said, adding that teaming with Tata to come up with an Indian roast was a huge step for Starbucks.

source: http://www.thehindubusinessline.com / Business Line / Home> Companies / by PTI / New York – November 19th, 2013

Govindappa Jayaram elected Karnataka Planters’ Association chairman

Bangalore :

Govindappa Jayaram from Kodagu district has been elected as Chairman and K Kurian from Chikmagalur district as Vice Chairman of Karnataka Planters’ Association.

Jayaram and Kurian got elected at the 55th Annual General Meeting of the Karnataka Planters’ Association.

The following have been elected to executive committee of KPA: Chikmagalur District – H.T. Pramod, Shirish Vijayendra, Mahesh Shashidhar.

Kodagu District – A.A. Ponappa, N. Bose Mandanna, M.A. Sampath (Corporate Seat).

Hassan District – V. Murali (Corporate Seat) and Baba P.S. Bedi.

Small Growers seat – Kodagu District – Dr M.M.Chengappa.

source: http://www.thehindubusinessline.com / Business Line / Home> Industry> Agri-Biz / by Anil Urs anil.u@thehindu.co.in / Bangalore – November 17th, 2013

Don’t correlate Brazil coffee cultivation to India’s: Jawaid Akhtar

Interview with Chairman, Coffee Board

Jawaid Akhtar
Jawaid Akhtar

After coffee producers in Brazil and Vietnam used mechanisation and genetically improved plants to increase crop yields, Indian coffee growers are trying to replicate their success. However, many allege the Indian government has not provided adequate incentives to increase crop yields or protect these from diseases such as the white stem borer. On the sidelines of the UPASI-KPA Coffee conference in Bangalore, Jawaid Akhtar, chairman of the Coffee Board, spoke to Antonita Madonna on these allegations and on the focus of the commerce ministry. Edited excerpts:

Growers allege, unlike their counterparts in Brazil, they have not been provided adequate incentives. How would the Coffee Board address that?

Brazil and India cannot be compared so easily. The methods used by them cannot be correlated with India’s, as the plantations in the two are very different. In Brazil, the higher crop yield is not as much the result of incentivisation as of the use of new varieties, new agronomical practices, etc. Production in India is increasing, but at a very slow pace due to several constraints. The drastic difference between the progress in India and in Vietnam and Brazil is because the soil is less conducive here. Vietnam and Brazil have volcanic soil. In India, coffee is not grown under direct sun, but under the cover of trees. So, productivity suffers, but quality increases.

Second, coffee growers have to show more dynamism. They have to put in more effort and use better inputs. What it requires is more water, more use of agrochemicals, etc. The Board is regularly working on research. We also disseminate the findings of these studies among growers. It is an ongoing programme.

What research and development is the Board doing?

We are working on finding new varieties that are high-yielding, pest- and drought-resistant.

Some three-four varieties are in the pipeline on the arabica side, as problems, including the white stem borer, are more prevalent in arabica. We had also introduced a variety of arabica coffee four years before. Robusta, on the other hand, is yielding in some places even after 80 years.

To replicate the success in Brazil here, growers have been seeking the Board’s help in research and tools. Is the Board working on that, too?

The mechanisation in Brazil cannot be correlated with that in India because in Brazil, there is no shade. Also, unlike the undulating terrain of the Western Ghats in India, the land in Brazil is plain.

The 20-ft high harvester they use in Brazil cannot be used in India, as coffee does not grow in the open here. Our plantations are different.

How is the Coffee Board encouraging more acreage for coffee?

We have seen production rising in non-traditional areas, but in traditional areas (Kerala, Karnataka and Tamil Nadu), it is not. Now, we have identified more areas where coffee production can be increased and are trying to include that in the 12th Plan.

With a depreciating rupee, is the board planning to increase exports?

There are schemes for exports already. But you can export more only if there is more production. We export 70 per cent of whatever is produced. But we offer incentives for areas to which much coffee doesn’t find its way, despite these being good markets for coffee. For instance, in the 11th Plan, we had five countries—the US, Canada, Australia, New Zealand and Japan. Now, in the next Plan, we will include other markets such as South Korea and two other countries. We are in discussions with other countries as well.

We are also trying to promote brand-building. So, we’ll give incentives to export value-added coffee in retail packs. The value-add maybe anything from roasting green beans or making instant coffee. Our instant coffee market is very robust. Almost all the value-added coffee that goes from India is instant coffee. Now, we’re the second-largest producer of instant coffee, after Brazil.

Any plan to introduce the Coffee Board’s own brands?

No, there is no such plan. All these plans were shelved 20 years ago and there are no plans to revive those. Now, it is a free market and we encourage private businesses. That is why we have introduced so many programmes to train manpower and tasters so that private people can run businesses.

Is the Coffee Board working on increasing awareness or building brand equity for Indian coffee?

We are, of course, working on positioning Indian coffee better in the international market. We participate in international trade fairs, advertise, get media coverage, arrange Indian coffee tasting sessions in international locations, invite roasters, make them taste Indian coffee, etc. All these efforts are already reaping rewards. Our average price of robusta is about 40 per cent higher than the international average. There is a very large international market for this premium Indian coffee.

source: http://www.business-standard.com / Business Standard / Home> Companies> Q & A> by Antonita Madonna / Bangalore – November 14th, 2013

Coffee growers spar over poly wrap method to curb white stem borer

Better solution: An arabica plant stem wrapped with cellophane tapes to prevent it hosting the white stem borer on a coffee estate in Kodagu. / The Hindu
Better solution: An arabica plant stem wrapped with cellophane tapes to prevent it hosting the white stem borer on a coffee estate in Kodagu. / The Hindu

Results are good, says Coffee Board; some planters raise environmental concerns
An ingenious method has been found to control the ruinous white stem borer in coffee estates where the arabica variety is grown. But coffee planters are split over the effect of the solution with some even questioning its impact on the environment.

According to A.K. Bhandari, coffee planter and former President of the United Planters Association of Southern India, wrapping the stem of the arabica plant with cellophane, called poly wrap, helps in containing the borer menace. The wrap prevents the female beetle from laying eggs in cracks and crevices of the plant.

“We came across this solution some two-and-a-half years ago when some planters used old plastic to wrap the stems. It prevented the borer from laying eggs and controlled the spread of the pest,” he said.

Coffee white stem borer, Xylotrechus quadripes, is a pest found in arabica coffee causing huge yield loss. A blackish brown coloured beetle, it can also be found on rosewood, sandalwood and teak.

Ten to 12 days after the female beetle lays the eggs on the stem, the larvae enter the woody tissue and burrow up to the roots. This leaves the plant impaired and the only known solution is uprooting the plant totally and burning it.

“Poly wrap physically stops the insect from laying eggs on the plant. Growers had, at one point of time, wrapped plants with old fertiliser bags. Now, they have begun to use strip wraps and the results have been good,” said Jawaid Akhtar, Coffee Board Chairman.

History traces the borer menace to 1837 and the first reference was made in 1838 by H. Stokes, Mysore Commissioner. In 1868, the Madras Commissioner had reported the ravages of the borer in Mysore and Coorg.

YIELD LOSS

“We have been suffering from the borer menace for over a decade now. It has affected arabica production. In some estates, nearly 50 per cent of plants had to be uprooted,” said Bose Mandanna, a grower in Kodagu and former vice-chairman of Coffee Board.

The borer menace has resulted in arabica production stagnating around one lakh tonnes annually for almost a decade after rising to a record 1.21 lakh tonnes in 2001-02 (October-September) season. Its share in total coffee production (robusta makes up the rest) has decreased from over 50 per cent in the 1980s to around 30 per cent now.

This year, out of the estimated 3.47 lakh tonnes production, arabica output has been pegged at 1.11 lakh tonnes. However, growers expect it to be lower than 90,000 tonnes.

“The poly wrap seems to be working very well. Most of the growers have reported 99 per cent success. About 10 estates can be taken and the experiment tried for 2-3 years,” said Bhandari.

The Coffee Board had sent an advisory on the poly wrap but not much progress seems to have been made.

“Labour shortage is the reason why poly wrap has not picked up. Also, there was short-supply of wraps. That has ended now as supply is ample. Results are encouraging and the wrap does not affect the plant’s growth,” said Akhtar.

But, there are voices of dissent too.

“The poly wrap was tried in small pockets and it has not been successful when tried on a large-scale. It prevents plants from growing. The bark growth is stunted and we feel this is not a scientific solution,” said the Karnataka Planters’ Association Chairman, Nishant Gurjer.

Some of the corporates involved in growing coffee have now begun to experiment the method. “We have begun the poly wrap on Coffee Board’s suggestion and are assessing the results,” said an official of Tata Coffee at its Margolly estate in Kodagu.

However, concerns are being raised over its effect on the environment.

“When the poly wrap gets old, it could lead to environment problems since it won’t disintegrate easily,” said Mandanna.

Gurjer agrees. “Plastic will add to the mechanical damage to the plants,” he said.

Other growers say that until a better solution is found, the poly wrap method should continue.

source: http://www.thehindubusinessline.com / Business Line / Home> Industry> Agri-Biz / by M. R. Subramani subramani.mancombu@thehindu.co.in / November 07th, 2013

Tea Board of India Extends Support to “World Tea & Coffee Expo” 2014, India’s Only International Trade Show Dedicated to the Tea & Coffee Sectors

As a part of its commitment to promote the Tea sector, the Tea Board of India, set up under Ministry of Commerce & Industry has extended its support to the 2nd Edition of “World Tea & Coffee Expo”™ (www.worldteacoffeeexpo.com), India’s only International trade fair dedicated to the Tea & Coffee sectors. The event is to be held at Bombay Exhibition Centre, Mumbai, India from Thursday 6th Feb 2014 to Saturday 8th Feb 2014. Tea Board of India has always been at the forefront of promoting Tea and has always taken proactive steps to address issues related to the Hot Drinks sector in India. The Tea Board of India decided to support this trade event since it shares a common goal with the show viz. promoting Hot Drinks in India. This niche expo is organized by the Mumbai headquartered Sentinel Exhibitions Asia P Ltd, a company engaged in managing and organizing trade events.

Says Mitesh M Kapadia, Director, Sentinel Exhibitions Asia P Ltd, “Hot drinks are witnessing positive growth since the last few years thanks to intensive marketing campaigns by players, launch of innovative products, the emergence of upscale Cafes offering both convenience, affordability and quality and the trend of these cafes becoming a meeting ground for young consumers.”

In addition to showcasing brands, products, machinery, retail Chains, accessories & technologies, WTCE 2014 will have Dedicated Innovations Display Zone, Interactive Demo areas (featuring Exotic Tea Tasting / Brewing sessions, Latte Art championships, Recipes and a lot more) as also Seminars & Conferences by Global Industry leaders & Policy makers to determine future trends in the Hot Beverage segment. The seminars will analyse prime factors influencing the sector and identify the sectors driving growth.

With an anticipated turnout of over 6000 Business Visitors including International buying delegations, WTCE 2014 promises to offer huge potential for franchising, marketing alliances, appointing Distributors, bulk orders, joint ventures and overall branding.

WTCE 2014 is also endorsed by a number of National & International Trade Bodies and visitors to the event will get exposure to national and international Brands, manufacturing and packaging technology, storage technology, Flavored Beverages, hi-tech vending machines, retails chains as well as a variety of products from importers and exporters of Tea & Coffee. For further details log onto www.worldteacoffeeexpo.com or contact Mr Mitesh, Director on +91 22 28625131 / +91 98205 03876 or on mitesh@sentinelexhibitionsasia.com

source: http://www.teanewsdirect.com / Tea News Direct / by K. Priti, Sentinel Public Relations P Ltd / November 06th, 2013

Tata Coffee re-appoints Deepak Kumar

Bangalore :

Tata Coffee Ltd has re-appointed M. Deepak Kumar as Executive Director-Finance for a period of one year commencing from October 25, 2013.

The decision to re-appoint Deepak Kumar was taken at the board of directors of the company at its meeting held on October 18.

source: http://www.thehindubusinessline.com / Business Line / Home> Companies / by Anil Urs anil.u@thehindu.co.in / October 18th, 2013

Tata Starbucks launches exclusive Indian blend

Blending well: India Estates Blend, Tata Starbucks’ latest product for the Indian market.
Blending well: India Estates Blend, Tata Starbucks’ latest product for the Indian market.

Mumbai :
Tata Starbucks has launched a coffee blend exclusively for the Indian market, on the occasion of the first anniversary of the opening of its first store in Mumbai. Called India Estates Blend, the coffee is sourced from the finest arabica beans produced at Tata Coffee’s four estates in Chickmagalur.

Tata Starbucks, a 50:50 venture between Tata Global Beverage and US-based Starbucks Corporation, has also set up a coffee roasting and packaging plant at Kushalnagar in Karnataka’s Kodagu district with a capacity to produce 375 tonnes.

The company chose India Estate Blend after testing various coffees across Tata’s estates in Kodagu and Chickmagalur. It will be sold at Tata Starbucks outlets for blending or consumption at home, according to the company’s Chief Executive Officer, Avani Saglani Davda. “Home bean consumption is catching up and India Estates Blend has been lined up for this,” she said. To be sold in packs of 250 g, the coffee will be available with six other varieties such as Home Blend, Italian and Addis Ababa.

It’s a long journey for the blend. The coffee beans are picked up from shady canopies in Kodagu and Chickmagalur estates and sent to Starbucks’ sourcing department in Seattle. This is the second blend brought out by the firm after the India Espresso Roast, sourced and roasted locally. The espresso is a popular product at Tata Starbucks stores across the country.

“The Starbucks sourcing department analysed the coffees and finalised the blend. The feedback is encouraging,” said Davda. The new blend is the first step Starbucks and Tata Coffee are taking to develop and improve the profile of Indian-grown arabica coffees in the global market. India Estates Blend is a medium roast coffee with a herbal juiciness and a chocolate finish. Tata Starbucks currently operates 24 stores across Mumbai, Delhi and Pune. “We will soon open an outlet in Bangalore,” a company official said.

(The writer visited Tata Starbucks’ Kushalnagar plant at the invitation of the joint venture firm).

source: http://www.thehindubusinessline.com / Business Line / Home> Companies / by M.R. Subramani / Mumbai – October 21st, 2013

Brewing recipe for success: Starbucks eyes long-term growth

The operations, which began with this historic handshake between Starbucks’ Howard Schultz and Tata group’s former chairman Ratan Tata, has only picked up steam over the last 12 months.

It’s a year to the day that coffee-chain Starbucks decided to give India a whiff of its world-famous blends. CNBC-TV18’s Vineetha Athrey travels to Tata Starbucks’ plantation in Coorg to find out what’s cooking for year-two.

This luscious Tata Coffee estate is where Starbucks sources its coffee beans from. And the Tatas have set up an exclusive plant here for Starbucks with an annual capacity of 375metric tons of coffee beans for the Indian operations.

The operations, which began with this historic handshake between Starbucks’ Howard Schultz and Tata group’s former chairman Ratan Tata, has only picked up steam over the last 12 months.

The joint venture has opened 24 outlets across Mumbai, Pune and Delhi and is now gearing up to ramp up its presence. This means newer cities with it city Bangalore becoming the next destination. Enthused by the warm welcome it has received in India; Starbucks also plans to enter other metros and tier-2 cities.

“The corner stone of the brand is the passion and commitment with which the partners create that beautiful environment and that unparalleled Starbucks experience. We feel humbled and proud that the Indian consumer has adapted to it so well, says Avani Davda CEO, Tata Starbucks.

Expansion, of course, means money and while the exact amount is as secret as its coffee recipes, Starbucks says it is aggressively shoring up its war-chest. Remember, in august the company got the go-ahead to infuse an additional Rs 150 crore into the operations and trebling its authorized capital of Rs 70 crore.

Getting that long term strategy in place means a strict standardization of beverage recipes, signature coffee blends and a stronger snack portfolio, for starters. That explains why its Indian outlets boast a new blend that is not available in any of its other markets just yet. The special blend, of course, actually boils down to the beans that come from this Tata plantation in Coorg.

Now the coffee giant is working on leveraging this further by possibly making this plant a sourcing base for its Asia operations, a move that would give it a significant competitive advantage over its competitors.

source: http://www.moneycontrol.com / MoneyControl / Home> CNBC-TV18 comments / by Vineetha Athrey, Reporter, CNBC-TV18 / October 18th, 2013

Tata Coffee opens extraction unit at Tamil Nadu’s Theni

Asia’s largest plantation firm Tata Coffee Wednesday unveiled its premium extraction plant at Theni near Madurai in Tamil Nadu to process the beans into freeze dried powder for exports to global markets.

Set up at a cost of Rs.80 crore with an installed capacity of 2,000 tonnes per annum, the hi-tech plant will produce spray dried, agglomerated and freeze dried instant coffee, retaining its aroma better.

“Freeze dried coffee retains aroma better and gives rich flavour, colour and appearance to the beverage,” Tata Coffee managing director Hameed Haq said in a statement from Theni, about 500 km from Chennai.

The plant is strategically located at the company’s instant coffee manufacturing facility, which is 170 km from Tuticorin port in the southern part of the state for export shipping.

“Our expertise in the bean to brew value chain, efficient processes and focus on sustainability has helped us maintain leadership position in the business. The expansion of our instant coffee facility demonstrates our commitment to provide premium coffees to customers worldwide,” Haq said.

As a 100 percent export-oriented unit, the instant coffee facility has an installed capacity of 4,000 tonnes per annum.

The Theni plant became a top exporter of soluble coffee to Russia and CIS countries last fiscal (2012-13).

As a subsidiary of Tata Global Beverages Ltd, the company produces 10,000 tonnes of shade grown Arabica and Robusta beans in its 19 estates across southern India and exports green coffee to Asia, Europe, North America and the Gulf region.

source: http://www.business-standard.com / Business Standard / Home> News-IANS> Business-Economy / IANS / Bangalore – June 19th, 2013