The two primary coffee brands in India are Bru by Hindustan Unilever and Nescafé by Nestlé India. Bro - retail volume share of 30% , Nescafé-15%.
Bru Roast & Ground - fresh ground coffee sales, Volume share of 26%
Nescafé’s Classic and Sunrise – Instant Coffee 53% of retail value sales in 201; Bru (41%).
Illy and Lavazza are the premium coffees in India. Bru and Nescafé offer differently priced products which cater to low price and premium tastes.
Coffee chains have have brought in a culture in favour of coffee
Convenience the main factor in driving growth in Instant coffee which is growing at 14%
In 2011, on-trade coffee volume sales(hotels,cafes) increased by 7% whilst retail volume sales only increased by 6%
Packaging changed to portray premium image - Bru Gold was also launched in a trendy triangular jar with a snap-fit cap
Growth Prospects : 1. Entry of coffee chains like Starbucks in India will change the outlook of the on-trade coffee area 2. Forecast period retail volume CAGR of 8%, mainly non traditional areas : North and North East India 3. Instant coffee will grow faster than fresh coffee at about 14% 4. Bru Exotica – The premium segment coffee brand is being watched closely to judge the potential of such a product in India. Rural India however poses a much more tempting prospect for growth. 5. 3-in 1 format of instant coffees being marketed by companies to exploit intest in latte and cappuccino flavours. So far growth has been limited to 3% 6. Scope for growth in vending machine format –