Tata Global Beverages (TGB) has entered the branded instant coffee segment with a new brand called Tata Coffee Grand.

Sourcing the coffee from the plantations of its subsidiary – Tata Coffee, the beverage company would use its extensive tea distribution network for its latest brand pegging it on par with its competitors such as Bru and Nescafe.

Addressing a press conference, Sushant Dash, Regional President-India, Tata Global Beverages, said: “After entering the coffee segment with the new instant coffee brand, we expect to accelerate growth in the coffee category on the back of the Tata brand, along with the strengths of our own plantation and distribution.’’

The instant coffee segment is pegged at ₹1,800 crore growing at 20 per cent with South India accounting for 80 per cent of coffee consumption.

“Even in South India consumers are moving from filter coffee to instant coffee,’’ added Dash.

Tata Global Beverages has been seeking a greater presence in the coffee retail segment where it already has global brands Eight O’Clock Coffee from the US and Grand from Russia.

But since it does not intend bringing any of its global brands here, it has created a new domestic brand under Tata Coffee Grand to cater to the Indian market.

Besides in the past, Tata Coffee did try to sell a ground and roast brand under Mr. Bean which did not gain much traction.

Differential pricing Meanwhile, emulating the pricing strategy of its nearest competitors, Tata Global Beverages is adopting differential pricing policy between southern markets and the rest of India.

“The southern markets are more developed, competitive with more unorganised players. This has made most of the branded players peg their prices lesser than the other markets,’’ said Dash.

So, while its jar format is pegged at ₹110 in the southern markets, it would cost ₹130 in the rest of India.

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