The Success Story of Café Coffee Day goes back to 1996, when the first chapter of its history began and led to such amazing growth. It was just another venture by V.G. Siddhartha in addition to way2wealth securities. Siddartha was then just an analyst with JM Financial and Investment Consultancy but had also inherited Coffee farms spread across a huge expanse of 10,000 acres. He also had interest in technology and his company Global Technology Ventures holds share in MindTree as well. It was a true example of his genius when he combined technology and coffee to start Café Coffee Day, first one at Bangalore in 1996.
Initially Café Coffee Day was positioned as an Internet café as Internet was just in its infancy in India. Along with Internet he planned to serve coffee to keep the surfers fresh but the genius actually lay in his dissatisfaction with his family coffee business. He was not happy with the low margins of coffee sales which fluctuated often and were dependent on international market forces. It was this dissatisfaction which led him to give a better marketing platform to his coffee business by even delivering the coffee experience to the end user himself! Thus was born Café Coffee Day which is owned by Siddhartha’s Amalgamated Bean Coffee Trading Company Ltd. (ABCTCL).ABCTCL is one of the largest Coffee exporter in India and all supplies of CCD as Café Coffee Day is popularly known is procured from its farms. The beauty of his business sense lies in the vertical integration model which CCD represents as not only the coffee is home-grown but also is the coffee machine which costs lesser than the western counterparts like Lavazza and Nestle machines.
Café Coffee Day since 1996 has seen bullish growth riding on the back of increasingly young India. The brand is a youthful brand which has quite a suggestive tagline- A lot can happen over Coffee (or after coffee depends on how you read it!) Initially due to confusion over its positioning Café Coffee Day lost a lot of ground to Barista but later Barista failed in comparison to the success story of Café Coffee Day.
Barista changed ownerships while CCD connected itself emotionally! Right now CCD is one of the top six global Coffee Café chains in terms of number of outlets and the vindication of its success story lies in the fact that Café Coffee Day now consumes more coffee than what is grown on its plantations which Siddhartha does not regret at all- He loves it because exports have a much lower margin than CCD’s retail operations.
Source : theforthright.com