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"Filter coffee decoction will succeed in every market"
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Monday, 17 November, 2014, 08 : 00 AM [IST]
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fiogf49gjkf0d South Indian Filter Coffee with its laborious preparation methodology seems to be slowly losing foothold amongst households where time has become a rare commodity. Hindustan Food and Beverages thought of innovating and developing a convenient method for making a cup of filter coffee. While going ahead with the idea, the company noted that the Indian coffee market comprised instant powder, fresh beans and freshly ground powder. But no players were offering ready-to-use filter coffee decoction. It is this info that made the company zero in on its offering. Harold Pereira, partner,Hindustan Food and Beverages, shares details on the market for his product and more with Nandita Vijay in an email interaction. Excerpts:
Provide us details on the company and its range of products in the food and beverage sector. Hindustan Food and Beverages (HF&B) was established in 1996 at Mysore with the sole aim of developing innovative food and beverage products for the domestic as well as international markets. Over a period of time, we established ourselves as a quality player in the food and beverage industry by pioneering a process to manufacture ‘ready-to-use filter coffee decoction’ and to be the first in India to do so.
The decision to venture into the coffee beverage industry was hardly surprising given the decades of experience the promoters have had as coffee planters. All the green coffee processed at the plant comes from company owned plantations. Initial developmental work on the ‘ready-to-use filter coffee decoction’ was done jointly with the Central Food Technology Research Institute (CFTRI), Mysore. However, the manufacturing process for the commercial launch was developed in-house at the HF&B developmental facility in Mysore.
As a fruit of our continuous efforts, we developed the system and processes to manufacture the ‘ready- to-use filter coffee decoction’ on a commercial scale. The 'ready- to-use filter coffee decoction' is currently our only product. After innumerable blends that we tested with our customer focus groups and professional coffee tasters, we have finalised on two blends. While a traditional South Indian Filter Coffee Blend is 80% Coffee & 20% Chicory, a Pure Coffee Blend is 100% Coffee.
What are the reasons that went into the development of this instant coffee? We believe in innovation. Providing our customers with qualitative products which are convenient to use has and will always remain our philosophy. With decades of experience as coffee planters, the first segment for us to foray into was naturally, coffee. The South Indian filter coffee with its laborious preparation methodology was slowly losing foothold amongst households where time was becoming a rare commodity. We therefore choose to innovate and develop a convenient method for our consumers to enjoy a hot cup of filter coffee.
What has been the demand in the Indian market? The booming Indian middle class comprises a set of people who have no time in their hands. With double income families on the rise, consumers are today looking for qualitative products which are convenient to use. Coffee consumption in India is also set to grow and we aim to tap its tremendous potential.
Do you export this product? Currently we do not export this product. But the opportunities with this versatile product are aplenty and we are looking at rapid expansion plans in the future.
Tell us about the technology transfer for this product. Initial R&D for the product was jointly done with CFTRI, Mysore. However the manufacturing process for large-scale manufacturing as well as the pre-requisites for the commercial launch was developed in- house at HF&B's research facility in Mysore.
Provide us details on the manufacturing facility and its production capacity. We have a state-of-the-art manufacturing plant in Mysore to produce this product. With its proximity to both Coorg and Chickmagalur, Mysore is an ideal location for us to process fresh coffee beans. The facility complies with all the safety regulations and the 'ready- to-use filter coffee decoction' is produced under hygienic conditions with utmost consideration to safety. As far as the capacity is concerned, we can currently produce 1,000 litre a day with the ability to ramp up as per the market demand.
What is the competition for this product? The Indian coffee market currently comprises instant powder, fresh beans and freshly ground powder. No player currently offers a 'ready- to-use filter coffee decoction.' You could say that we are creating a new segment in the coffee industry with this product.
Have you been tapping the retail outlets and industry canteens for large-scale supplies? We have been supplying this product to select institutions for the last five years.
We now believe that the time is right for us to introduce this product in the retail segment as well. Over the next few months, we will launch this product in the retail industry across the major metros in India. At the same time, we would also start supplying this product to large institutions and the HORECA (hotel, restaurant and catering) segment.
According to you what is the big benefit for consumers to go for this product? With this versatile product in hand, making a cup of refreshing filter coffee has never been easier. The consumer gets the benefit of consistent taste every time with minimal effort and preparation time. Plus the versatility of the product is such that it can be used not only in hot coffees but also in cold coffees, cakes, confectionery and also as an ice cream topping.
We understand that the company has plans for an instant ready-to-drink version, what is the status of that product ? We currently do not have any plans to introduce a 'ready- to-drink' version of the product. But we always work with a customer-first approach and based on the customer demand, we will develop suitable products.
What are the likely future efforts of the company to grow the business? Retailing this ‘ready- to-use filter coffee decoction’ product across major metros in the country will be our immediate goal. Once we have successfully tapped the urban crowd, we will look to penetrate the Tier II and Tier III city markets. We are confident that the 'ready- to-use filter coffee decoction' with its convenience and quality will succeed in every market we launch it.
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