The Hindu Business Line : Café Coffee Day plans bulk trading in Europe

Mumbai April 16 Café Coffee Day plans to start bulk trading of its brand to European countries. Having forayed into international markets for its coffee-retailing venture, it now intends selling the brand under its own brand name through the general trade channels.

Mr Naresh Malhotra, CEO, Café Coffee Day, told Business Line, "Our objective is to start trading in the overseas markets. But first our brand has to be known in these markets." Having set up a subsidiary in Vienna and a franchise operation in Pakistan, the coffee major expects to vend its brand through departmental stores.

"Considering we are already available through our retailing outlets, we expect consumers to buy our coffee in bulk under our brand name as well," said Mr Malhotra. At present, the company continues to supply its coffee to certain international coffee brands. "At present, we sell our coffee as a commodity but soon we intend appointing a distributor to sell our brand in the overseas markets," he added.

Eyeing countries such as Germany, the Czech Republic and Switzerland, Café Coffee Day expects its brand to be visible in these markets through the general retail chains as well. Adds Mr Malhotra, "We intend spreading our operations in the eastern countries of Western Europe and would be trading our coffee in these countries in future."

In the domestic market, the company has already set up a packaged coffee division to cater to modern trade. The brand is retailed through certain outlets in the southern markets and there are plans to launch the brand at national level in the future. The company intends to ramp up its international operations with 10 new coffee retailing outlets in the course of the year. With additional outlets planned in Vienna and Pakistan, apart from more in Europe, Coffee Café Day expects to position its product as a `lifestyle brand'. In the domestic market too, there are plans to add 200 outlets this year.

Café Coffee Day is planning to service more budget airlines with its offerings. At present, its air catering services are limited to carriers such as GoAir and Air Deccan. "We plan to add more budget airlines in our services,'' states Mr Malhotra.