Tata Consumer targets double-digit growth in its coffee business, led by an expansion in both portfolio and reach, said Puneet Das, President of Packaged Beverages at Tata Consumer Products in India and South Asia.

Share Market Live

NSE

“I think quarter-on-quarter, we are seeing gradual recovery and growth is coming back. It's on a different trajectory, it is growing at a solid double-digit, and ended quarter one at about 20%. So we hope to continue on that momentum and only get better because a- we are expanding our portfolio and b -we are expanding our reach.”

Coffee is a Rs 3,200-crore market growing at about 10%. Around 80-85% of the coffee market is in the instant coffee segment.

Das said despite being a small player, the coffee business has actually been on an accelerated journey. "Coffee is itself going through some headwinds on commodity cost and import. But like I said, this is where our innovations are helping us to manage the portfolio and then keep growing it while managing these challenges,” he said.

Read Here | Tata Consumer says more price hikes likely in food biz, but measured and spread across the portfolio

Das said there is a gradual recovery in rural demand. "...across FMCG you saw commodity costs going up. And while they were correcting, the rural demand sort of continued under pressure because food and vegetable prices went up and now they are sort of starting to ease,” he said.

Also Read | Seattle-based startup makes 'beanless coffee' to help combat deforestation

(Edited by : Shweta Mungre)

First Published:Oct 5, 2023 4:44 PM IST