Coco cola is about to buy coffee cafe day an Indian established brand image which is not only spread in India with a large variety of Indian customers which not only provides accessibility but also provides with affordability ,it's been also spread in few countries outside India....
that means it's going to be a great deal for coco cola company to buy coffee cafe day....a well established brand.... because there are certain other aspects to it also which will ......make it a profitable deal ..!!!!
Those other aspects are written down .....do comment me what do you think about this purchase.....will it be a profitable for coco cola or not ....also with reasons...!!!
Talks are in the early stages and may not lead to a deal, they said. “The potential stake acquisition is being driven by Coca-Cola’s headquarters in Atlanta and officials from the beverage maker’s global team are engaged in active talks with the Coffee Day management,” said one of the persons.
Those other aspects are written down .....do comment me what do you think about this purchase.....will it be a profitable for coco cola or not ....also with reasons...!!!
Talks are in the early stages and may not lead to a deal, they said. “The potential stake acquisition is being driven by Coca-Cola’s headquarters in Atlanta and officials from the beverage maker’s global team are engaged in active talks with the Coffee Day management,” said one of the persons.
“It would give Coca-Cola significant scale in the fast-growing café business, compared to aerated soft drinks, which have been slowing down.”
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Talks with Coca Cola may be renewed by Café Coffee Day following demise of the promoter VG Siddhartha, reports Economic Times.
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Talks with Coca Cola may be renewed by Café Coffee Day following demise of the promoter VG Siddhartha, reports Economic Times.
The company is trying to pare down debt and other group companies, like Sical Logistics and software technology park, Global Village Tech Park, in Bengaluru, are all under different stages of negotiations for sale and the proceeds being used to clear off the debts the companies owe.
The levels of debts may come down to manageable levels.
Taking over Coffee Day makes sense to Coca Cola. The company is passing through a low as far as its aerated beverages businesses is concerned.
Taking over Coffee Day makes sense to Coca Cola. The company is passing through a low as far as its aerated beverages businesses is concerned.
taking over CCD will immediately give it ownership of 1,700 outlets across the country. There are some outlets outside of India as well.
This is not the first time Coca Cola is trying to take over CCD. Earlier, VG Siddhartha had held negotiations with the US giant for a possible investment but not a buyout.
The talks had fallen through since Siddhartha wanted a valuation of his company placed at around Rs 10,000 crore, which possibly Coca Cola had not agreed to then.
Promoted by VG Siddhartha, the country’s largest coffee chain is owned by Coffee Day Global, a subsidiary of Coffee Day Enterprises. With a footprint of 1,752 cafés as of March 2019, CCD is market leader in the organised café space.
competitors of coffee cafe day :
It competes with Starbucks and smaller chains such as Barista and Costa Coffee. In India, Starbucks operates through a venture with the Tatas and has 146 stores.
CCD’s expansion plans have slowed over the past two years on the back of rising debt.
Interesting facts about coffee cafe day :
*“CCD today has become the largest youth aggregator, and from a marketing stand point, the success has come by focusing on the 3As: Accessibility, Affordability and Acceptability.”– Bidisha Nagaraj, the Marketing president of Cafe Coffee Day.
*Cafe Coffee Day (CCD) has an established brand image in India and ranks No 2 in the Brand Equity’s Most Trusted Brands 2008 survey – in the food services category. Rival Barista is at No 5. CCD has been able to make a connection with the Indian consumers, predominantly among the youth.
*CCD is the market leader in India and was awarded the ‘Exclusive Brand Retailer of the Year’ by ICICI Bank in its Retail Excellence Awards 2005 for the organized retail sector.
*Coffee consumption in India is growing at 6% per annum compared to the global 2% plus. In India, the per capita consumption of coffee is around 85 grams while it is six kgs in the US.
*Cafe Market in India – Coffee retailers cover only 170 cities out of 3,000 in India (early 2011 reports). In 2008, according to Technopak Advisors, the Indian food servcies market – cafes, full-service restaurants, fast-food outlets/quick-service restaurants was estimated to be $6 billion (Rs 26,000 crore) with organized players taking 13% of the market.
*Cafe Market in India – Coffee retailers cover only 170 cities out of 3,000 in India (early 2011 reports). In 2008, according to Technopak Advisors, the Indian food servcies market – cafes, full-service restaurants, fast-food outlets/quick-service restaurants was estimated to be $6 billion (Rs 26,000 crore) with organized players taking 13% of the market.
(By 2014 this number is expected to increase up to 27%.). According to Technopak Advisors, the café market in India is estimated at $150 million (Rs 678 crore) and growing at 40 per cent over the last five years.
*CCD’s International Expansion Strategy – In June, 2010 Cafe Coffee Day chain acquired Emporio for Rs 15 crore. Emporio is a Czech Republic-based café chain present at 11 locations. CCD plans to co-brand the chain as Café Coffee Day Emporio and later transition it to Café Coffee Day.
CCD is also present in Vienna. The company wants to expand in the East European region, West Asia and the Asia-Pacific region.
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