Tata Consumer products steps into D2C market to capitalize on new-age trends

Tata Consumer Products Ltd with the launch of its premium roasted and ground coffee under Sonnets brand has stepped into the direct-to-consumer (D2C) consumer market. It wants to capitalize on the new-age consumer trends.

Puneet Das, president, packaged beverages, India and South Asia, Tata Consumer Products, Limited, said the company has been focusing on growing its business especially in beverages – tea and coffee. “As part of the focus on the coffee portfolio, which in India is largely instant filter coffee, the idea was to keep introducing innovations,” he said. “Sonnets is a step in that direction, targeted at a more discerning consumer looking for freshly grounded roasted coffee delivered to their doorstep.”

The company has also introduced a premium and gourmet tea brand – 1868, earlier this year. This is a range of 13 teas, such as Darjeeling Rare Wonder which is priced at Rs 1,500 for 50 grams. Tata Consumer Products Ltd said Sonnets is sourced from Tata Coffee’s plantations in South India. “These are microlet coffees which are limited edition offerings and are processed on the estates. Sonnets is available in four microlets with customizations across roast and grind levels. Shoppers can place orders online and opt for either a filter coffee or a French press grind.”

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Das said the launch of Sonnets will pit TCPL against new-age coffee brands such as Dope Coffee Roasters, Blue Tokai and Araku, among others that specializes in selling premium roasted and ground coffee. “These brands have found favour among coffee connoisseurs in India. The premium coffee market is pegged at Rs 70 crore to 100 crore.” He said the Indian market is currently undergoing an evolution when it comes to drinking coffee. “As the market evolves, you start getting into artisanal coffees, people are experimenting more and want more customized experiences,” Das said.

TCPL, in 2020 had said it will acquire PepsiCo’s stake in NourishCo Beverages Ltd – a 50:50 joint venture between the two companies as it moves to build a strong play in the packaged beverages market. Earlier this year, it announced the acquisition of Kottaram Agro Foods, the maker of Soulful brand of breakfast cereals and millet-based snacks.