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Tata Coffee to launch Eight O'Clock in Russia, CIS

Our Bureau

Plans more Mr Bean Junctions in India


MR M.H. ASHRAFF

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Bharat Matrimony

Bangalore Feb. 23 Tata Coffee plans to take its recently acquired US-brand Eight O'Clock coffee to Russia, Ukraine and the Common Wealth of Independent States (CIS), Managing Director Mr M.H. Ashraff said on Friday. Tata Coffee had bought Eight O'Clock from Gryphon Investors for $220 million last year.

Consumption growing

Currently, Tata Coffee is the second largest exporter to Russia, Ukraine and CIS nations, where instant coffee consumption has been growing annually by 10-12 per cent.

"The market there is big enough for us to enter," Mr Ashraff said.

Tata Coffee mainly supplies to private labels in these countries and also owns two brands - Mysore Gold and International Tata Café that are distributed through partnerships.

Instant coffee plant

The company expects to start full-scale production at its new 2,500 tonne freeze-dried instant coffee plant at Theni next month and plans to export under the Eight O'Clock brand, Mr Ashraff said. Freeze-dried coffee, manufactured through a unique process where in the brewed coffee is frozen before the water is evaporated, is more flavourful and expensive than the instant coffee, which is spray-dried.

Plant in Uganda

Further, Tata Coffee is setting up a 3,600-tonne soluble coffee plant at Uganda.

"Construction at Uganda would start in a couple of months and the plant would be ready in next 18 months," he said.

Tata Coffee would be jointly taking the Crane coffee brand with the Government of Uganda to China, he said. The Government of Uganda owns the Crane brand.

More outlets

On its retail initiative in India, Tata Coffee plans to set up Mr Bean Junction, a retail outlet, in some five cities. At present, the company operates a Mr Bean Junction at Kochi.

Commenting on the price outlook for coffee, Mr Ashraff said he expected the prices to stay firm at least till next year. Tata Coffee is the largest producer of the commodity in India with an output of around 10,000 tonnes.

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