Hyderabad-based CCL Products will assess trading performance over the next six-12 months before deciding whether to scale its Contico café concept beyond its current three sites
CCL exports instant, ground and wholebean coffee to more than 90 countries | Photo credit: CCL Products/Facebook
CCL Products (India) Ltd – one of India’s largest instant coffee exporters – is seeking to tap into the country’s thriving coffee shop market after opening three value-focused cafés in Hyderabad.
In an earnings call following its first quarter results, CCL said it will assess the success of the small-format Contico concept over the next six-12 months before deciding whether invest further in expansion.
“The cafés are small format and primarily for takeaways. We will see for six months to a year to get the proof of concept and once that’s done, we will decide how to scale this up,” said CEO Praveen Jaipuriar.
Small-format coffee shops are proving successful in India. In January 2024, Tata Starbucks outlined takeaway-focused outlets would be key to achieving its goal to reach 1,000 stores by 2028, while Mumbai-based start-up abCoffee has raised $5.4m over the last 12 months to accelerate the roll-out of its quick-service, on-the-go concept.
CCL’s move into India’s coffee shop market underlines the vast opportunities generated by rising domestic coffee consumption and increased demand for premium café experiences.
In March 2024, Madhya Pradesh-based tea chain Chai Sutta Bar launched premium coffee shop concept Kaffee-La’ at Indore’s Malhar Mega Mall. The following July, New Delhi-based tea chain Super Chai announced plans to launch its own coffee shop concept, Super Coffee. Identifying a gap in the Indian market for a value-focused coffee chain, Super Chai co-Founder Vaibhav Khanna said Super Coffee will appeal to Gen Z consumers with beverages priced from Rs 80 ($0.96).
Further highlighting the growing appeal of Indian coffee brands, Haryana-based FMCG group GRM Overseas acquired a 44% equity stake in instant and ready-to-drink (RTD) coffee retailer Rage Coffee for an undisclosed sum in August 2024. Rage Coffee will leverage GRM’s export market network to scale its domestic and international distribution.
Founded in 1994, CCL exports instant, ground and wholebean coffee to more than 90 countries under its Continental brand and white label business. In June 2023, CCL acquired the UK retail coffee brand Percol from Swedish coffee roaster Löfbergs for an undisclosed sum – a move CCL said marked its entry into ‘Europe’s largest instant coffee market’.