Amul, the huge Indian farmer’s cooperative and Tata Coffee, an established name in coffee, are to jointly launch an instant coffee brand. The move synergises Amul’s reach and Tata’s presence in coffee. Both Amul and Tata already compete with Nestlé, in confectionery and coffee respectively.
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India’s domestic coffee consumption is circa US$230m, of which instant accounts for US$100m. Of this, the bulk is coffee-chicory blends. In instant coffee, Nestlé sells 1700 tonnes, and Tata 350t.
Amul has unequalled distribution power: 46 sales offices, 3000 distributors and 500,000 retailers. Its main products are milk, milk powder, health beverage powder, chocolate and ice cream.
Tata Coffee is a subsidiary of Tata Tea which was recently in the news on just-food.com for its takeover of Tetley UK. Coffee companies are currently in a bind over collapsed international prices.
By Navroz Havewala, just-food.com correspondent
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