Thursday, July 14, 2011

HUL EYES ON CAFE INDUSTRY


Hindustan uni-liver has invested behind a clutch of businesses that are not typically fmcg.

It began vending tea and coffee eight years ago,and recently piloted the Bru world cafes

In Mumba i. the question is why a company which sells packaged consumer products,

Is pushing service driven models vastly different from its core operations?

The ans is “when a consumer makes broke bond tea in the morning, she uses a spoon of HUL,s

Packaged brand, yielding the company about 50 paise /day” .So HUL wondered why not serve

The consumer an entire cup of tea and introduced vending machines. This fetched them RS 3

Per cup instead of 50 paise from selling packaged tea.

The exploding network of urban cafes serving liquid café serving liquid coffee and tea at RS 50

And above to mostly younger consumers made HUL research this segment.

In past TATAs attempted expanding their packaged coffee play into café business but logged out

Soon.