Strategy of Café Coffee Day to Enter in the Us

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Strategy of Café Coffee Day to enter in the US Introduction The founder of CCD, V G Siddhartha, started the culture of selling coffee at retail outlets in India. Café Coffee Day (CCD), by Amalgamated Bean Coffee Trading Company Limited (ABCTCL), is today India’s largest coffee conglomerate with regular coffee shops and premium coffee lounges mushrooming across the country. CCD stands today in India with 1319 coffee retails outlets across 20 cities. The brand owns Asia's second-largest network of coffee plantations. Its mission statement is “To be the best Cafe chain by offering a world class coffee experience at affordable prices (CCD 2012).” CCD strategically expanded to different geographies outside India. CCD, with its strategic alliance with Café Emporio entered in Czech Republic. It also has its presence in the coffee retail space in Austria, Prague, Vienna and Karachi. Launching into new markets and new countries has proved beneficial for the company as the brand is doing well across geographies. Hence, strategic expansion of the company into the new markets has been identified as a good growth strategy. US Coffee Market To get in-depth data on the US Coffee consumption, we have studied data from The National Coffee Association and The Specialty Coffee Association of America. They conduct annual surveys regarding coffee consumption each year. The American F&B market is flooded with coffee shops. The market is saturated but not to its full potential. * The US coffee industry today stands at $18 billion. * CAGR of 20% * The average American consumes 3.1 cups of coffee per day. * $12 billion come from retail sales (independent coffee shops). * Estimated 50,000 independent coffee shops by the end of 2013 * Over 50% of Americans over 18 years of age drink coffee every day. This represents over 150 million daily

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