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Coffee Day plans to introduce vending machines for households

06-August-2004
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Coffee Day plans to introduce vending machines for households

The southern coffee business major, Coffee Day, is looking at a new market for its hot beverages. Targeted at the housewives, the company is in the process of introducing small vending machines for the household segment.

Coffee Day take away division general manager, AG Puttaraj told FE that Coffee Day is in the planning stage to introduce the product. After success in the south, Coffee Day entered the Mumbai market, both through its coffee shops and vending machines. Mr Puttaraj said that the company is registering healthy growth in the Mumbai market, both in the institutional and retail segments. He did not give any specific numbers. Earlier Coffee Day figures in June showed 850 vending machines in Mumbai with plans for a total of 1,700 in the current fiscal. Including Karnataka, Tamil Nadu, Kerala and Andhra Pradesh, the company has about 6,000 vending machines.

A franchisee of Coffee Day in Mumbai confirmed the company’s plans to enter the household segment with small vending machines. He added that it may also introduce new small machines for small offices in the city. According to him, the company is conducting test marketing of these concepts in the south and may introduce them to Mumbai market by August-end or September 2004.

Mr Puttaraj explained that at present the company has four types of vending machines catering to different segments. Continuous research activity is going on to cater to other segments such as small offices. He denied about any test marketing activities underway, at the moment.

Hindustan Lever (HLL), another player in beverage vending business, puts more thrust on out-of-home consumption of tea/coffee with products like Lipton Ice Tea, Taj Mahal and Bru range of hot tea/coffee, with different flavours. An HLL spokesperson said: “We are the largest player in hot beverages out-of-home segment. We are expanding this in the increasing number of offices and the services sector. We are also having new specially designed kiosks in education, entertainment, leisure and travel segments. Our alliance with Pepsi will strengthen our presence in out-of-home channel.”

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