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Marketing - Outlook
Café Coffee Day plans Europe expansion

Debdatta Das

New Delhi, Aug. 10 Retail coffee chain Café Coffee Day, a part of the Rs 450-crore Amalgamated Bean Coffee Trading Company Ltd, is considering an extensive overseas roll out by the end of 2009.

“Our aim at Café Coffee Day is to provide the best coffee with the best affordable hanging out experience to our consumers. We introduced our chain in Pakistan and Vienna in Austria, and the response we got compelled us to think of venturing further, specifically in Europe,” said Ms Simran Sablok, General Manager Marketing, Café Coffee Day.

On the reason to concentrate on Europe, Ms Sablok said, “Our idea was to get into a market that has a strong coffee culture, which Europe certainly has. Also having set up a sound back end supply chain through our outlet in Vienna, we decided to explore other regions that were within two hours flying distance from there.”

The company plans to set up 50 outlets in countries such as Poland, Belgium and Germany in Europe by the end of 2009. None of the land will be purchased, but taken on lease and the setting up cost will be from internal accruals.

Though the company declined to comment on the exact investment overseas, Ms Sablok said, “An investment of around Rs 35 lakh is required to set up a regular Café outlet in India. However, the advantage of setting up overseas is the availability of reasonably priced real estate.”

On its plans for the domestic market, Ms Sablok said that the company’s objective is to touch the 500-outlet mark and be present across 100 cities by the year-end. The country is already home to 436 outlets across 86 cities. On promotional and marketing plans, she said, “We constantly do a lot of below-the-line promotional activities through tie-ups with other brands, media houses, movies and also through merchandising..”

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