Lavazza stirs up home seg­ment with pre­mium fil­ter cof­fee

The Hindu Business Line - - NEWS -

Lavazza In­dia on Thurs­day en­tered the home cof­fee seg­ment with the launch of pre­mium pure fil­ter cof­fee.

The new prod­uct, Il Mat­tino Vi­vace, made at the com­pany’s plant in Sri City, and priced at ₹150 for 200 gm, will be avail­able in re­tail stores and se­lect gro­cery stores that cater to pre­mium cus­tomers.

The com­pany has three ver­ti­cals — away from home, home and of­fice.

Over 90 per cent of Lavazza In­dia’s rev­enue comes from ho­tels and the of­fice sec­tor. With the new launch, it plans to im­prove its mar­ket share in the home seg­ment.

Ad­dress­ing me­di­a­per­sons at the launch of the prod­uct here to­day, Sil­vio Zac­careo, Man­ag­ing Di­rec­tor, said Il Mat­tino Vi­vace caters to the unique taste that the South Indian mar­ket has for fil­ter Sil­vio Zac­careo, MD, Lavazza In­dia, at a press con­fer­ence in Chennai on Thurs­day

cof­fee. But mak­ing Lavazza rel­e­vant to the home cof­fee seg­ment is a chal­lenge, he agreed.

In In­dia, around 7.7 lakh tonnes of cof­fee is con­sumed every year with con­sumer homes ac­count­ing for about 80 per cent.

The in­stant cof­fee mar­ket oc­cu­pies a ma­jor chunk of the cof­fee mar­ket. The pre­mium fil­ter cof­fee seg­ment, where the com­pany has po­si­tioned it­self in, ac­counts for about 1,000 tonnes a year.

Chal­leng­ing en­try

“En­ter­ing the mar­ket is a chal­lenge. We need to ed­u­cate the mar­ket and up­grade it. But it is not like there are no op­por­tu­ni­ties,” said Zac­careo.

In a mar­ket study done ahead of the lat­est launch, the com­pany found that though there are many lo­cal play­ers of­fer­ing pre­mium prod­ucts, there aren’t many in­ter­na­tional play­ers in the seg­ment.

“With the cof­fee cul­ture pick­ing up in, we find that there are peo­ple who want to ex­per­i­ment and are will­ing to up­grade. That will be our tar­get au­di­ence,” said Zac­careo.

The com­pany is fo­cus­ing on strength­en­ing its mar­ket in Chennai right now. It plans to ex­tend its dis­tri­bu­tion across In­dia by the year-end.


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