Newstrack

Barista's second manufacturing unit by year-end

Mona Mehta - Mumbai

Soon after Italy's Lavazza group acquired 100 per cent stake in Barista Coffee Company in the end of first quarter 2007, Barista Coffee Company is now planning to set-up its second manufacturing facility in Mumbai by 2007-end. At the new facility, the company plans to manufacture food and beverages apart from non-chocolate desserts and savouries, informed Rini Dutta, vice president - marketing and product development, Barista Coffee Company.

According to Dutta, “This is to make sure food products are delivered at a faster pace at the ‘Barista’ coffee retailing outlets located in the vicinity closer to the manufacturing facility in Mumbai and thus meet the evolving needs of younger generation for innovative products. But, prior to the move, we would start manufacturing similar food products at our existing manufacturing facility based in Delhi, beginning December 2007 onwards.”

While Barista Coffee Company is selling Lavazza coffee through ‘Barista’ coffee outlets, it is very likely that Lavazza group may look at setting up ‘Lavazza’ chain of coffee retailing outlets in India. The group currently has 'Lavazza' outlets in Italy and neighbouring countries.

Besides, Barista Coffee Company is also planning to make its 60 ‘Barista’ coffee retail chains wi-fi enabled by the end of 2007. For the purpose, the company is currently in talks with IT majors., "The move is in sync with the emerging trend in the global market where most global coffee retail chains are wi-fi enabled so as to provide customers today's young generation the latest technological facility which they would witness in the global market as well." However, Dutta refused to divulge details about the IT company with whom Barista Coffee Company would tie-up with.

Barista Coffee started its operations in India in 2000 and has set up 160 ‘Barista’ coffee retail outlets with a strong focus on northern and western markets. Plans are on the anvil to set up additional 50 company-owned outlets in southern and eastern markets as well. Besides, we are also talking to major retail chains such as Reliance Retail, Bharti Retail apart from various real estate developers to set up Barista outlets in Mumbai, Delhi and other metros," Dutta added. This is in line with the company's strategy to open outlets in high street locations, malls and corporate IT parks.

According to Gibson Vedamani, chief executive officer, Retailers’ Association of India, “At 25 per cent - 30 per cent, the organised coffee retail segment, which stands at about Rs 400 to Rs 500 crore at the moment, is galloping. The organised portion is just a fraction of the unorganised sector.” The overall non-alcoholic, non-carbonated beverages (tea and coffee, that is) market is pegged at around Rs 8,000 to Rs 10,000 crore. However, domestic retail chains such as Cafe Coffee Day, Mocha, Qwikys and Coffee World are ramping up operations quickly.