Lavazza India stirs up home segment with launch of premium filter coffee product

OUR BUREAU Chennai | Updated on January 08, 2018

Wooing the South: Silvio Zaccareo, MD, Lavazza India, at a press conference in Chennai on Thursday - Photo: Bijoy Ghosh

Lavazza India on Thursday entered the home coffee segment with the launch of premium pure filter coffee.

The new product, Il Mattino Vivace, made at the company’s plant in Sri City, and priced at ₹150 for 200 gm, will be available in retail stores and select grocery stores that cater to premium customers.

The company has three verticals — away from home, home and office.

Over 90 per cent of Lavazza India’s revenue comes from hotels and the office sector. With the new launch, it plans to improve its market share in the home segment.

Addressing mediapersons at the launch of the product here today, Silvio Zaccareo, Managing Director, said Il Mattino Vivace caters to the unique taste that the South Indian market has for filter coffee. But making Lavazza relevant to the home coffee segment is a challenge, he agreed.

In India, around 7.7 lakh tonnes of coffee is consumed every year with consumer homes accounting for about 80 per cent.

The instant coffee market occupies a major chunk of the coffee market. The premium filter coffee segment, where the company has positioned itself in, accounts for about 1,000 tonnes a year.

Challenging entry

“Entering the market is a challenge. We need to educate the market and upgrade it. But it is not like there are no opportunities,” said Zaccareo.

In a market study done ahead of the latest launch, the company found that though there are many local players offering premium products, there aren’t many international players in the segment.

“With the coffee culture picking up in, we find that there are people who want to experiment and are willing to upgrade. That will be our target audience,” said Zaccareo.

The company is focusing on strengthening its market in Chennai right now. It plans to extend its distribution across India by the year-end.

Published on October 12, 2017

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