The Hindu Business Line : Mr Bean Coffee Junction in Kochi soon

"We propose to sell roasted coffee beans, coffee powder, beverages, and snacks at the new enterprise," said Mr A.H. Ashraff, Managing Director of Tata Coffee.

In all likelihood, the company would be locating the unit in the city, close to the colleges and the naval base at Thevera.

Meanwhile, the coffee culture is stepping out of homes and kitchens and is becoming a fashion and lifestyle statement.

"The advent of a string of predominantly coffee dispensing outlets such as Barista, Coffee Day, and Coffee Club is also spurring coffee consumption," said Mr Ashraff.

The advent of these elite coffee drinking joints catering to the upwardly mobile executives and the college crowd has increased the acceptance of coffee in the North Indian markets and is eroding the North-South divide in coffee drinking habits, he added.

Changing with the times, Tata Coffee is now focusing on the vending machines business, which has been booming in the recent past.

The company has recorded 30-40 per cent growth in this sector.

Tata Coffee currently has 7,000 vending machines in offices and institutions across the country, and has plans to add another 3,000 machines this year.

Spurring this growth has been the advent of the new genre of call centres, BPO units and the Internet café culture, which has added and extended the coffee drinking habit, Mr Ashraff said.

Given the predictability and reliability of the business model, Tata Coffee is making vending machines one of its thrust areas for future growth.

The company has been promoting the business through the franchisee route, whereby the franchisee pays for the standard vending machines and the kiosks.

Tata Coffee provides the pre-mix of coffee-chicory-sugar blend for the machines. Maintenance and upkeep of the machines and kiosk is the responsibility of the franchisee.

With focus on institutions, offices and new wave call centres and BPO units, the demand-supply paradigm is uniform and predictable, making it a win-win situation for both Tata Coffee and the franchisee, Mr Ashraff said.

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