Fresh 'n Ground brews a Southside story

Coffee Day Fresh 'n Ground, part of the Amalgamated Bean Coffee Trading Company (ABCTC), has embarked on fresh initiatives to expand its coffee powder retail store chain in south India.

With the demand for its fresh coffee powders growing, Fresh 'n Ground was planning to further enhance its presence in the south by rapidly increasing the number of stores and the range of coffee blends over the next few months, C J Jayanth, business head, Coffee Day Fresh 'n Ground, said.

"As part of the dynamic plan for Fresh 'n Ground, we are adding another 100 stores to have at least one store in every major district in the southern states by the end of the present fiscal," he added. Of the 100 stores, the company plans to set up 60 stores in Tamil Nadu.

The company's coffee powder retail store chain now has a network of over 370 stores, which supply 22 blends of freshly ground filter coffee powder and accessories across Tamil Nadu, Pondicherry, Karnataka, Andhra Pradesh and Kerala. It has been clocking a steady growth in its business with over 20 per cent growth seen across all southern states.

Jayanth said about 70 per cent of these stores were self-owned while the others were franchisees, serviced by Fresh 'n Ground's supply chain. About Rs 2.5 lakh was required to set up a retail outlet, he added

While Fresh 'n Ground has traditionally been a company that sells freshly ground powder grown on 5,500 acres of the company's own estates of its parent company ABCTC, it has also set its sights on the growing market for packaged filter coffee powder in South Indian homes.

At present, the company has a unique packaged blend "� 'Coffee Day Perfect' "� made of 57 per cent coffee and 43 per cent chicory, which has been receiving good response in Tamil Nadu.

Confident of a larger market for packaged filter coffee powder, Fresh 'n Ground would introduce Coffee Day Perfect in other southern states and make it available in over 50,000 retail outlets across the south in the next 12 months, Jayanth said.

"We are seeing very strong growth opportunities ahead of us, and this is the right time for us to make the most of it through expansion. We are happy to see that the growth is coming not only from our freshly ground powders, but also from our packaged filter coffee offering. With our 10- year experience in the coffee retailing business, we are confident of expanding our network while continuing to maintain the freshness and taste of our large range of filter coffee powders."

Of the 55,000 tonne coffee market, the Indian roast and ground coffee segment is estimated at 22,100 tonne. However, this segment is witnessing a four per cent decline annually.