Costa Coffee, the leading chain owned by Coca-Cola, is ramping up its growth strategy in India to capitalise on the rapidly expanding café culture.The͏͏ chain͏͏ recently͏͏ reached͏͏ the͏͏ milestone͏͏ of͏͏ 200͏͏ stores͏͏ and͏͏ aims͏͏ to͏͏ open͏͏ 40͏͏ to͏͏ 50͏͏ new͏͏ locations͏͏ annually.͏͏ The͏͏ brand͏͏ has͏͏ been͏͏ experiencing͏͏ double-digit͏͏ growth͏͏ in͏͏ the͏͏ Indian͏͏ market.
Focus͏͏ on͏͏ Omnichannel͏͏ Experience͏͏ and͏͏ Specialty͏͏ Coffee:
Vinay͏͏ Nair,͏͏ Vice͏͏ President͏͏ of͏͏ India͏͏ &͏͏ Emerging͏͏ Markets͏͏ at͏͏ Costa͏͏ Coffee,͏͏ stated͏͏ that͏͏ the͏͏ café͏͏ chain͏͏ is͏͏ concentrating͏͏ on͏͏ becoming͏͏ a͏͏ multi-occasion͏͏ and͏͏ omnichannel͏͏ brand͏͏ as͏͏ the͏͏ specialty͏͏ coffee͏͏ segment͏͏ reaches͏͏ a͏͏ tipping͏͏ point.
“India͏͏ is͏͏ a͏͏ key͏͏ market͏͏ for͏͏ Costa͏͏ Coffee,͏͏ and͏͏ we͏͏ have͏͏ a͏͏ robust͏͏ partnership͏͏ here.͏͏ There’s͏͏ a͏͏ surge͏͏ in͏͏ consumer͏͏ interest͏͏ in͏͏ the͏͏ specialty͏͏ coffee͏͏ space,͏͏ with͏͏ people͏͏ eager͏͏ to͏͏ try͏͏ new͏͏ innovations.͏͏ This͏͏ is͏͏ driving͏͏ momentum͏͏ in͏͏ the͏͏ segment.͏͏ For͏͏ us,͏͏ the͏͏ opportunity͏͏ is͏͏ to͏͏ tap͏͏ into͏͏ these͏͏ emerging͏͏ occasions͏͏ and͏͏ platforms,͏͏ embedding͏͏ ourselves͏͏ in͏͏ the͏͏ daily͏͏ coffee͏͏ routines͏͏ of͏͏ Indian͏͏ consumers.͏͏ We͏͏ see͏͏ a͏͏ significant͏͏ growth͏͏ trajectory͏͏ for͏͏ the͏͏ brand͏͏ in͏͏ the͏͏ country,”͏͏ Nair͏͏ said.
Continue͏͏ Exploring:͏͏ Costa Coffee unveils͏͏ Autumn͏͏ Maple͏͏ Hazel͏͏ menu͏͏ in͏͏ India
The͏͏ brand͏͏ operates͏͏ in͏͏ India͏͏ through͏͏ outlets͏͏ located͏͏ on͏͏ high͏͏ streets,͏͏ in͏͏ malls,͏͏ airports,͏͏ hospitals,͏͏ highways,͏͏ and͏͏ corporate͏͏ offices,͏͏ in͏͏ addition͏͏ to͏͏ institutional͏͏ vending͏͏ machines.
“As͏͏ part͏͏ of͏͏ our͏͏ efforts͏͏ to͏͏ strengthen͏͏ our͏͏ omnichannel͏͏ presence,͏͏ we͏͏ are͏͏ implementing͏͏ various͏͏ strategic͏͏ initiatives͏͏ to͏͏ unlock͏͏ new͏͏ consumption͏͏ occasions.͏͏ We͏͏ are͏͏ now͏͏ also͏͏ available͏͏ in͏͏ approximately͏͏ 85͏͏ PVR͏͏ INOX͏͏ cinemas.”
Plans͏͏ for͏͏ Aggressive͏͏ Expansion͏͏ in͏͏ Tier-1͏͏ and͏͏ Tier-2͏͏ Cities:
Devyani͏͏ International,͏͏ the͏͏ Indian͏͏ franchisee͏͏ for͏͏ Costa͏͏ Coffee,͏͏ plans͏͏ to͏͏ open͏͏ 40-50͏͏ new͏͏ outlets͏͏ each͏͏ year,͏͏ with͏͏ a͏͏ strong͏͏ focus͏͏ on͏͏ tier-1͏͏ and͏͏ tier-2͏͏ cities.͏͏ In͏͏ Q1FY25,͏͏ the͏͏ company͏͏ reported͏͏ a͏͏ 40.5%͏͏ year-on-year͏͏ revenue͏͏ growth͏͏ for͏͏ Costa͏͏ Coffee,͏͏ driven͏͏ by͏͏ store͏͏ expansion.͏͏ For͏͏ FY2024,͏͏ revenue͏͏ from͏͏ operations͏͏ for͏͏ the͏͏ Costa͏͏ Coffee͏͏ business͏͏ reached͏͏ INR͏͏ 151.8͏͏ crore,͏͏ marking͏͏ a͏͏ 49%͏͏ increase,͏͏ according͏͏ to͏͏ the͏͏ company’s͏͏ annual͏͏ report.
Continue͏͏ Exploring:͏͏ Costa Coffee reports͏͏ 49%͏͏ surge͏͏ in͏͏ revenue͏͏ to͏͏ INR͏͏ 152͏͏ crore͏͏ in͏͏ FY24,͏͏ adds͏͏ 67͏͏ new͏͏ stores
“We͏͏ are͏͏ taking͏͏ a͏͏ disciplined͏͏ approach,͏͏ prioritising͏͏ revenue͏͏ growth͏͏ from͏͏ our͏͏ existing͏͏ stores͏͏ while͏͏ continuing͏͏ to͏͏ open͏͏ new͏͏ outlets͏͏ each͏͏ year.͏͏ On͏͏ one͏͏ hand,͏͏ infrastructure͏͏ development͏͏ and͏͏ new͏͏ malls͏͏ have͏͏ created͏͏ fresh͏͏ opportunities.͏͏ Simultaneously,͏͏ there͏͏ has͏͏ been͏͏ an͏͏ increase͏͏ in͏͏ enquiries͏͏ from͏͏ corporates͏͏ and͏͏ large͏͏ institutional͏͏ spaces͏͏ as͏͏ employees͏͏ return͏͏ to͏͏ offices,”͏͏ Nair͏͏ added.
Coca-Cola͏͏ acquired͏͏ the͏͏ Costa͏͏ business͏͏ in͏͏ 2019.͏͏ When͏͏ asked͏͏ about͏͏ the͏͏ brand’s͏͏ growth͏͏ acceleration͏͏ since͏͏ the͏͏ takeover,͏͏ Nair͏͏ said,͏͏ “Growth͏͏ has͏͏ certainly͏͏ picked͏͏ up͏͏ in͏͏ the͏͏ last͏͏ 24-30͏͏ months.͏͏ We’ve͏͏ expanded͏͏ our͏͏ points͏͏ of͏͏ sale͏͏ and͏͏ now͏͏ operate͏͏ over͏͏ 200͏͏ outlets͏͏ across͏͏ the͏͏ country,͏͏ with͏͏ a͏͏ focus͏͏ on͏͏ seizing͏͏ new͏͏ opportunities.”
