Coorg in Karnataka, is among the foremost coffee growing regions in India. SLN, a three-decade old coffee plantation company in the region is now aiming to grab a slice of the Rs 2,200-crore annual packaged coffee market, which is dominated by big players like Nestle (Nescafe), Hindustan Unilever (Bru) and Tata Coffee.
SLN launched its own brand of coffee called Levista three years ago and has ever since expanded to 40,000 retail outlets, predominantly in Tamil Nadu and Karnataka. It has now set its sights on expanding across other markets, starting with the rest of south India.
“Of the Rs 2,200 crore market annually, over 80 per cent of the coffee consumption happens in the five southern states and Union territories. Therefore, we aim to reach a significant market share here rather than being sparsely spread all over the place,” S. Shriram, vice-president sales and marketing at Levista, told THE WEEK.
“At the moment, we have a deep presence in Tamil Nadu and Karnataka. We launched our coffee in Goa in February and business is growing steadily. We will be entering the Andhra Pradesh and Telangana market by Sankranti and will penetrate deeper in there. Kerala will follow next.”
The company has the markets of Mumbai and Delhi-National Capital Region on the radar, too, however, it has not finalised a launch date yet, added Shriram.
Levista is also available on online platforms, including Amazon and it is also scaling up on other e-commerce platforms to reach a wider audience.
“Players like Big Basket have also aided our brand coverage, as has Flipkart. We have been recently on boarded through Udaan that reaches small retailers as well as hyperlocal players MilkBasket,” said Shriram.
While south India has a strong tradition of filter coffee, the rest of the country has largely been a tea drinking market. However, things have started changing with penetration of cafes like Cafe Coffee Day and Starbucks in the last decade. International coffee brands like Lavazza are also expanding in the country, buoyed by rising coffee consumption here.
“There is a huge scope for us to grow. The coffee market has been growing steadily. Out of home coffee consumption through cafes has already hit a pan-India presence and thanks to this familiarity, more new consumers are sipping coffee at home, through packaged coffee,” noted Shriram.
Levista's parent SLN currently has a capacity upwards of 50,000 metric tonne per annum, and Shriram says the company will be able to produce enough coffee for the domestic market as well as for exports.
Talking of exports, the brand is already present in Singapore, Malaysia, Middle East, Maldives and Sri Lanka, reaching out to the south Indian consumers in these markets. The company intends to have a larger international presence next year, added Shriram.
