Tata Consumer Products D2C route to sell coffee, tea and spices

Tata Consumer Products, the newly formed entity by merging Tata Beverages and Tata Chemicals plans to take the D2C route to reach more customers, in the fastest possible time and with a wide range of products from coffee, tea, spices, ready to eat food among others.

Eight ‘O’ Clock Coffee, which joined the Tata Family is America’s original gourmet coffee will be available soon in India and is expected to have a Direct to Consumer (D2C) model, to ensure it reaches discerning consumers who love their coffee and have preferences such as medium roasted, dark roasted, Decaf and so on. The company has launched “Sonnets” a premium variety of coffee in 2020 and took the brand national through its distribution network with a formal D2C launch in June 2021.

Mr. R. Chandrasekaran, Chairman, Tata Sons said the company is integrating its distribution network and supply chain to increase efficiencies, end to end digitisation of the sales funnel including its channel partners and field force. The company is strengthening its e-commerce capabilities with data analytics and Strategic Planning, he said during the company’s Annual General Meeting.

The company has also launched “Nutrikorner” where in most of the SKUs of Tata Consumer Products are available and offer a 10% discount to end users. While the distribution is not yet national, the company could consider an internal tie-up with its newly acquired unicorn – Big Basket – to push the entire range of its consumer products including Tata Grand Coffee, Tata Tea, Tetley and Tata Salt. Sunil D’Souza, CEO, Tata Consumer said that the e-commerce business has grown two times during the previous Financial Year and that the channel sales has witnessed 130% growth.

Not surprising with most of Corporate India confined to their homes with partial or full WFH since Apr’ 20. Neighbourhood Kirana stores have witnesses a boom in sales of grocery and household items, though smaller pack sizes have been the preference in Tier 2/3 towns while consumers in metro cities have been lapping up (or hoarding) larger packs to save for a rainy day (read: sudden lockdowns). Earlier this week, Distributors in Kerala maintained a 1-day strike against Tata Consumer to condemn their newly laid guidelines towards the trade & distribution.