Barista Coffee Sets Up New Company In Sri Lanka
EH&C Staff - Mumbai

In the first phase, the new joint venture company is planning to set up nine Barista Coffee outlets in Sri Lanka, at an investment of Rs 3 crore within a year. The second phase may see setting up of a new concept bar, Pavement Bar at Taj Samudra in Colombo. The alliance will provide a strong coffee platform for Barista in the coffee retail segment in Sri Lanka

In a significant move, Barista Coffee Company Ltd, has recently entered into a 51:49 equity joint venture with Jewelex Trading Ltd of Colombo, Sri Lanka, as part of its expansion plans. Says Ravi Deol, managing director, Barista Coffee Company, “With the move, a joint venture company called Barista Coffee Lanka Pvt Ltd, with Barista holding the majority stake, has been formed to enable this expansion.”

In the first phase, the new joint venture company is planning to set up nine Barista Coffee outlets in Sri Lanka, at an investment of Rs 3 crore within a year. “In the second phase we may consider setting up a new concept bar, Pavement Bar at Taj Samudra in Colombo. This strategic alliance will strengthen Barista Coffee’s leadership in its experiential category giving it an early mover advantage. The alliance will provide a strong coffee platform for Barista in the coffee retail segment in Sri Lanka,” stated Deol.

According to Deol, the company plans to build its espresso bars on the same format as those in India, ensuring that the essence of the Barista brand remains intact. “This venture will give us a competitive edge because of the inherent marketing strength of Jewelex Trading, which is one of the business houses in Sri Lanka catering to high end brands in US and Europe such as Marks and Spencer, Victoria’s secret, Calvin Klein and GAP,” said Deol.

On Barista’s future plans for the Indian market, says Deol: “In a bid to reach out to a wider audience in the Indian market place we are planning to set up 37 more Espresso Bars spread across cities such as Bhubaneswar, Ranchi, Jamshedpur, Cuttak, Patna, Amritsar, Jaipur, Jalandhar, Panchkula, Nagpur, among others by 2003-end.”

Currently, Barista operates 110 Espresso Bars spread across major cities in India. “We also have a concept bar called, Pavement Bar at the Taj poolside, Taj Mahal, Hotel, Mumbai, a 24-hour coffee shop for consumers who want to have coffee at odd hours,” adds Deol.

Ushering in the festive season, the company has recently rolled out a host of new marketing initiatives at the retail-end to woo consumers. Says Sandeep Vyas, head of marketing division, Barista Coffee Company Ltd: “We have recently upgraded the merchandising of existing Barista Coffee outlets designed to reflect the spirit of Italy. To deliver an authentic Italian experience, we have sourced 100 per cent Arabica Coffees, which are roasted as per the specification of our Italian roast-master. We have even launched Italian Food called ‘Baguees’ and ‘Foccia’ and new range of desserts at outlets.”

Further, in order to implement its initiatives of consumer loyalty programme, the company may consider launching a co-branded plastic card with smart chip, in the near future, informs Vyas. However, he was reluctant to divulge further details. Concludes Deol, “With the move, we aim to achieve a sales turnover of Rs 100 crore by March 2003-end.”