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Tata Coffee Ltd plans to expand its footprint in the US and Japan by serving high quality, premium speciality coffees to the small roasters there.
The country's largest integrated coffee producer has entered the lucrative US market with its washed robustas, a speciality coffee. It also plans to build on its subsidiary Eight O'Clock Coffee's presence in the region through the specialty segment.
“We are planning to target the small roasters with micro-lots (small quantities of up to a couple of tonnes) in the US and Japan,” said Mr Hamid Huq, Managing Director, Tata Coffee. The company, which is witnessing a volume growth in speciality segment, sees big potential in the US, which is an underpenetrated market for Indian coffees.
The speciality coffees, Mr Huq said, command a premium ranging from 8 per cent to 30 per cent and the company exported some 600 tonnes last year. “We are close to doubling the exports in the current year,” Mr Huq said.
The Speciality coffees are high quality coffees, produced in special geographic micro-climates at various elevations and have a unique flavour profile. These fine varieties are different from the normal coffees and are processed differently and have distinct taste, imbibing the flavours from its environment. Major speciality coffees from India include the Monsooned Malabar, Mysore Nuggets Extra Bold and the Robusta Kapi Royale among others. Tata Coffee also exports coffees certified by associations such as Rainforest Alliance, UTz and SA 8000.
The Rainforest Alliance certification is awarded for conserving biodiversity and environment protection, while the UTz is for efficient farm management practices. The SA 8000 certification is for labour standards and social accountability.
“The demand for sustainably grown coffees is on the rise in developed countries,” Mr Huq said. Tata's certified and speciality coffees' exports have grown from 1,026 tonnes in 2006-07 to 1,847 tonnes in 2010-11. In the first half of current year, such exports stood at 1,687 tonnes in the first half.
Over the next few days Tata Coffee is set to announce an alliance with the global coffee retail giant Starbucks to open retail outlets in India.
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