Financial Daily from THE HINDU group of publications Thursday, Jun 01, 2006 |
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Brand Line
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Interview Marketing - Retailing Variety - Lifestyle `There's deep interest in coffee here' Sravanthi Challapalli
"Espresso's a very Italian way of drinking coffee ... but Indian food is popular in Italy."
GUISEPPE TACCARI, Global Director (Exports), illycaffe
Does India love all things Italian? After pizza and pasta, which have reinvented themselves to suit even traditional, pure-vegetarian menus, will it be espresso's turn to make a mark in urban India? Very much so, says Guiseppe Taccari, Global Director (Exports), illycaffe S. p. A. of Italy, which will soon put Illy, its brand of pure Arabica coffee, on India's store shelves. The 73-year-old Italian company produces and markets its own blend of multi-origin, 100 per cent Arabica coffee from a single roasting, processing and packaging facility in Trieste, Italy where quality is checked "chicco per chicco (bean by bean)." More than 5 million cups of Illy espresso are sold worldwide. In Italy, espresso is the dominant form of out-of-home consumption of coffee. At home, coffee is drunk as `moka,' brewed in a moka pot. Illy has associated itself with promoting contemporary art, photo and architecture and comes out with a series of espresso cups designed by the artistes it supports every year. In India, illycaffe has an exclusive arrangement with the Chennai-based Fresh & Honest Café (FHC) which distributes its coffee in five-star hotels, restaurants and Barista outlets, FHC's chain of coffee shops. Espresso's still too small a segment in India for reliable estimates but illycaffe is confident. And here's a factoid in Taccari's words: "A little espresso has a strong taste but is mild on the heart" _ the longer caffeine is exposed to water, the more it is absorbed, but espresso takes all of 30 seconds to brew! BrandLine caught up with this marathon runner who is also a graduate of Trieste's University of Coffee. Excerpts from the interview:
What are your impressions of the Indian market for coffee? When I came to India first in 1999, I discovered that when you come here, you are in touch with a continent, not a country. There is deep interest in coffee, espresso, and it's been growing through the years. The country's used to a very good quality of coffee, and the coffee culture is very developed in South India, which is why we chose this region (and the big cities) as the starting point to develop our brand. I would connect India to Scandinavia, actually, in coffee appreciation - both regions are used to the Arabica coffees, which is the best taste. How would an espresso brand do in an Indian retail scenario? How would Illy be used? Yes, it's a challenge. Espresso's a very Italian way of drinking coffee ... but Indian food is popular in Italy. I remember my father taking me to an Indian restaurant in London in the '70s, and the taste of the mango chutney there (laughs) ... both my children too now like Indian food. The retail business has to be approached carefully. It's important to create the right awareness, and to communicate clearly. But Indians are fond of adding milk and sugar to their coffee. Ah, yes! Well, a reasonable quantity of sugar makes espresso more delicious. And you can have great drinks with milk and espresso. We have enough range to create interest, there can be hundreds of different recipes (points to a catalogue that contains several recipes for espresso-based coffee drinks/desserts) ... for a warm country like India, you can have cold espressos with cream. A lot of foreign brands have had to Indianise themselves to find acceptance. Can Illy be used to make filter coffee, for instance? It's all about teaching people how to use the product, not about changing the blend. Which is why we're here, to provide good training and after-sales service. You can use Illy for filter coffee, but if you want to enjoy Illy at its best level, drink espresso. Having said that, we are putting out two variants of Illy - the blend stays the same but the roast and grind will differ. The coarser variety will suit filter coffee. What's the importance of Illy to espresso? We're the largest brand in the HoReCa (hotels, restaurants and cafes) segment in Italy. We have the largest market share of six per cent in a very fragmented market that has over a 1,000 coffee-producers. We also have leadership in the retail espresso segment at 15 per cent. Now more than 50 per cent of Illy sales come from overseas - that's an important sign of the company's internationalisation. We're present in 130 countries worldwide, in over 40,000 outlets. illycaffe is enlarging its strategies to cover services too - we are producing espresso machines for home use. We also have around 100 Illy coffee bars called Espressamente, in Italy, China, Europe and Australia; we hope to bring them to India as soon as possible. We're positioned as a premium blend but we're also a small, affordable luxury for the espresso freak.
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