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Coffee Pod Market Insights and Innovations

The Grind Coffee aims to address the growing Indian coffee market by developing innovative coffee pod and machine solutions tailored to Indian consumers. Their approach includes reusable coffee pods to reduce costs, machines with built-in milk frothers for Indian-preferred milk coffees, and coffee blends featuring traditional Indian spices for health and taste. This provides a unique value proposition compared to international competitors.

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Sanji Zoro Natsu
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0% found this document useful (0 votes)
224 views30 pages

Coffee Pod Market Insights and Innovations

The Grind Coffee aims to address the growing Indian coffee market by developing innovative coffee pod and machine solutions tailored to Indian consumers. Their approach includes reusable coffee pods to reduce costs, machines with built-in milk frothers for Indian-preferred milk coffees, and coffee blends featuring traditional Indian spices for health and taste. This provides a unique value proposition compared to international competitors.

Uploaded by

Sanji Zoro Natsu
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

The Grind Coffee

Health and Wellness in a Pod


Global coffee consumption increased by
2.1% (2018-19)

By 2025 global coffee pod market


estimated at $15b … APAC estimate $6b

Increased demand for coffee variants


amongst youth

Market shift towards home-based DIY


brewing machines with easy to use pods
Market indicators
The Coffee Pod- growth

Estimated growth Ease of use. Better


higher than other designed for
coffee variants flavours

Low or no
Wide assortment
maintenance
Indian Coffee Market
• Target market and spending avenues

• Scope of the coffee machine growth

• Coffee powder market

• Current coffee pod and machine –


competitive landscape
Target Market – spending avenues
High expenditure on food & beverages
CATEGORY % SPEND
16
Food and Beverages 44.60%
TARGET MARKET 14 14 Housing 12.90%
14 13 13 13
12 12
Others 9.70%
12 11 Energy 8.00%
10 10 10
10 9 9 Clothing and Footwear 6.00%
8 8
8
6 6 2014 Eating out – increase in no. of Coffee Cafes
6 5 2017
44 4 Year Cafes
4 2017 3500
22
2 1 2020 (Est) 6000
0
A1 A2 A3 B1 B2 C1 C2 D1 D2 E1 E2 E3 Increase spend on household appliances
SEC CLASSIFICATION
60
48.37
50
40 31.49
30
US$ (mn)
20
10
0
2017 2022 (Forecst)
Growth in Home Appliances
Water
Purifiers

Electric
Kettles Coffee
Machines
Chimneys
Coffee Machines on the
CAGR% cusp of high growth
Hand Blender Standing
Rice Cooker Mixer Hobs
OTG Grinders
Built in Hobs
Dishwasher
Kettle
Built in oven
Food Processor Microwave
Ovens

Growth Potential
Coffee Powder Market-
India
• Revenue: USD 987M
• Expected growth rate: 7.4%

USE OF COFFEE PODS AND MACHINES STILL REMAINS LIMITED


• Higher urban segment of society: perceived as high priced
• Not entirely designed for Indian way of drinking coffee
• Internationally sourced; high prices low supply
• Internationally flavoured coffee - disconnect with consumer
Current market – pods
Coffee pods Consumer implications
• Market leader: Nespresso pods • Machines designed to be compatible with
Nespresso pods
• Other key brands: Vero, Nick of Time,
Bonhmia • Limited availability of machines
• Features: internationally sourced, pre-filled • Limited flavours (chocolate, vanilla,
coffee pods hazelnut) and international blends
• Hight costs due to one time use
• Quality cannot be ascertained (pre-filled
pods)
Current market – machines
Coffee pod machines Consumer implications
• Most machines are stand alone Coffee POD • Can only be used to dispense Espresso shots
machines – No in-built milk frother or Americano (shots + water)
• Additional milk frother required for latte,
cappuccino etc
• 90% of Indians prefer milk with coffee which
makes the frother necessary … additional 7k
INR
• Compatibility issues: one pod cannot fit in 2
• Machine to POD compatibility is essential different types of machines
The Grind Coffee –
Solution Ideas
Coffee pods
Coffee pods Consumer implications
• Re-usable coffee pods • Reduction in cost per cup
• Freshness of the coffee is guaranteed:
consumer fills the pod when required
• DIY concept of filling pods: consumers get
the experience of filling pods
• Nespresso compatible pods: for customers
with existing Nespresso machines
Coffee machines
Coffee pod machines Consumer implications
• Coffee pod machines with in-built milk • Able to provide milk based coffee
frother • Removes necessity to purchase separate
frother
• Nespresso pod compatible
• Universal pod machine: compatible with any
type of pod/capsule. Can also brew using
coffee powder
Coffee Blends
Coffee pods - features Consumer implications
• Regular blends • Blends based on Indian consumer’s tastes
and preferences
• Sourced from a single estate in Coorg
• Underlying health and wellness benefits

• Coffee infused with Indian spices • Connect the consumers with age old
remedies and traditional flavours
Our Coffee.
Type 1: Regulars

Name Blend Roast Tasting Notes


Bombay West Coast 100% Arabica Medium Dark Roast Chocolate, Nuts, Berries
Intense Blend 60% Arabica 40% Robusta Medium Dark Roast Chocolate, Nuts, Berries, Ruberry
Indian Blend 80% Arabica 20% Robusta Medium Roast Nuts, Caramel, Ruberry
Bourbon – Arabica / Peaberry / Robusta Arabica / Robusta / Peaberry Medium Roast Chocolate, Nuts, Earthy
Bear Blue Arabica 40% Robusta 60% Medium Dark Roast Earthy, Ruberry, Nutty
Blend Benefits
Vanilla Reduced cholesterol levels

Our Coffee
Powder

Cinnamon Builds immunity, high antioxidant levels

Type 2: Cardamom

Cocoa Nibs
Rich in fibre, Improves circulation

Rich in fibre, Protein healthy and fats

Infused with Nutmeg Detoxifying properties, improves circulation, better skin


health

spices Ginger Anti-inflammatory properties, reduces soreness and muscle


pain

Lavender Improved sleep, hair growth, reduces blood pressure

Star Anise Better digestion, alleviates cramps

Clove High antioxidant levels, regulates blood sugar, improves


liver health

Pepper Relieves tension, headache, menstrual cramps and


digestive symptoms
Key differentiators – a summary.

Blends based Blends infused Coffee pod Universal Reusable pods


on Indian with Indian machines with capsule/pod
consumers spices in-built milk machine
tastes and frother
preferences
Competitive Landscape
IN BUILT
NO. OF NATURAL BREWING RE-USABLE
BRAND ORIGIN MILK
VARIANTS BLENDS EQUIPMENT CAPSULE
FROTHER
Mostly South America
Nespresso Over 25 No Yes No No
and Africa

Bonhomia India Aprrox - 19 No Yes No No

Columbian, India and


Nick of Time 4 No Yes No No
African

Vero India 13 No Yes No No

Fresh Brew Co. Columbia, South Africa 12 No Yes Yes No

Coffeeza Italian 5 No Yes Yes No

The Grind India 13 Yes Yes Yes Yes


The Grind – Business
Model
Competitively priced pods and machines

Pods Machines

TYPE INR per NAME FEATURES Retail price


pod INR
The Grind pre-filled capsules: regular 35.00 The Grind- GHC3 Pod + milk frother 15,000
The Grind pre-filled capsules: infused 45.00 The Grind- universal Universal pod machine 9,900
The Grind reusable capsules: regular 7.00 pod machine

The Grind reusable capsules: infused 10.00 Vero red coffee pod Pod machine only, no 17,000
machine milk frother
Nespresso capsules 65.00
Vero 40.00 Coffeeza latisso coffee Pod + milk frother 17,000
maker
Bonhomia 34.00
Nespresso inissia No millk frother 15,000
Nick of time- Indian coffee 32.50 coffee machine
Business model and Go To Market
Phase 1 – Launch Phase 1 – GTM Strategy
• B2C marketing blitz to create buzz about pod • Focus on inbound marketing
type machines and flavoured coffees suited to programmes, customer acquisition and
the Indian taste in house selling
• Pods to be sold in both prefilled and reusable • Company e-commerce platform. Tie up
types with delivery partners (Dunzo)
• Regular and Indian flavour infused coffee • Online portals: Flipkart, Amazon, Big
powder Basket
• Coffee pod machines and ancillaries

Phase 2 – Post 8 to 12 months of B2C launch Phase 2 – GTM Strategy


• Increased range of coffee machines – full / semi • B2B sales, bulk pack sales through field
automatic sales personnel
• Coffee in Dip bags • Direct sales: institutions/HoReCa
• Coffee powder: retail packs/bulk packs • Wholesalers/distributers: Tier 2 cities
• Go B2B – institutions and HoReCa segment • Retail chain stores
B2C marketing initiatives
Machine + Pod bundling offers
➢ reduce perceived price of the Coffee machine
➢ convert to Long Term customer by selling machine – regular
purchase of coffee powder
➢ Position Coffee Pod machine as an aspiration product – now
even more functional and affordable

Machine Buy Back offers

➢ replace old machines with our new machines


➢ Convert customer to Long Term – tie-in with Coffee powder
purchase commitment

Standard Inbound Marketing tactics such as SEO, plus


➢ Coffee recipe sharing on social sharing platforms
➢ Webinars and Online communities
➢ Coffee brewing techniques
➢ Coffee blends and recipes
➢ Optimization of Coffee machine capabilities
B2B Selling Initiatives

Machines on Hire Purchase / Rentals


➢ Monetize customer by committing purchase of Coffee Powder
➢ Buy back scheme on old Coffee machines
➢ In house Barista expertise
➢ Assist in developing new flavours and drinks
➢ Assist in setting up Coffee Shops
➢ Machine related trouble shooting
➢ Service tie-ups and Maintenance contracts
Coffee on the go

Make and enjoy your usual cup of


coffee wherever you are.

The portable espresso machine


makes amazing coffee shots.
Recycling Initiative
• USED COFFEE POD’S - RECYCLED
• used coffee grounds to be sold for making compost
• aluminium pod shells sold for making new aluminium
products

FIRST TIME REGISTRATION PROMOTION

• return used coffee pod’s of ANY brand

• receive credits for purchase of The Grind Coffee pod’s


Recycling Initiative
ORDER
Order a recycling kit online
through the company website.
REDEEM Kit includes:
: recycling box COLLECT
Obtain relevant credits : masking tape
in your account for the Collect upto 200
used filled pod’s used filled pod’s in
returned. the recycling box
Redeem the credit
against purchase of new
pre-filled pods RETURN
Once filled – arrange a pick
through the company
website
New recycling box delivered
Traction- progress till date
• Agreements in place with coffee machine suppliers on model
line up and pricing
• Samples machines received and tested
• Tie ups with coffee estates established for supplies
• Roasts and blends concluded with roasteries
• Blends with Indian spices developed and sampled
• Packaging and labelling design in progress
• Company formation in progress (April)
• Regulatory applications (GST/PAN/TAN) in progress
• FSSAI licence – when the company is formed
• The ‘Grindhousecafe.co’ the ‘grindhousecafe.in’ registered
Geographical expansion

Looking
o Start with Mumbai, expand to other metros – Bangalore, Chennai, Delhi,
o Tie ups with distributors for Tier 2 cities

forward…
Product development
o Build on the ‘Health and Wellness’ platform – new blends
o Coffee with Orange / Lemon / Jaggery / Turmeric

New brewing methods


o Liquid coffee pouches

Coffee machines
o New and varied machines – Fully Automatic (digital), Semi – Automatic,
Travel Espresso machines
o Exclusive contracts with supplier for India distribution for Pod machines
o Expansion in product range for Coffee brewing ancillaries
•Experience of 27 years in the Electrical appliance industry
•Have built extensive contacts in sourcing of coffee machines and ancillaries from overseas manufacturers.

The Team
•Have been instrumental in designing and modifying coffee machines to suit the Indian coffee drinking culture
KETAN SHETH • modified the fully automatic coffee machine to increase milk temperature during dispensation –
requirement of hot milk
• Extensive knowledge of coffee bean selection, roasting and grinding as required by different brewing machines
• Instrumental in development of specific blends
• Would be responsible for sourcing of machines and all importation related issues with the international suppliers

PRASHANT PATHAK
• Experience of 20 years in the hospitality industry
• Barista maestro champion of 2006 – Awarded by the Barista International Championship
•Freelance hospitality consultant for the past 12 years
• Nominated by the Indian Coffee Board to assist entrepreneurs set up cafes and coffee shops
• consulted in setting up 10 coffee shops
• Experience in coffee bean selection and roasting, blend formulation and new product development
• developed new blends and formulations for Beans Unlimited Co.
• developed new blends using fresh fruits and natural ingredients
• Would be responsible for coffee blend development, coffee bean sourcing and new variant development
The Team
ASHWIN BALANI
• 25 years experience in the field of Sales and Management in varied industries – domestic and international
• As Business Head – have led multi discipline teams – sales, operation and finance
• member of the management team involved in the formation of a JV between a Nigerian and German dairy
company to promote dairy products in the Nigerian retail market
• 10+ years experience in the field of food management – from international souring to final consumer sales
• coordinated supply chain for supplies from Europe and New Zealand
• developed business plans, marketing and go-to-market strategies to promote dairy products
• Expertise in commercial management and back-end operations – especially for QSR’s (Quick Service
Restaurants)
Would be responsible for all marketing and go-to-market activities as well as commercial discipline
Thank you

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