ITC to foray into coffee market next year

MUMBAI: ITC, makers of Sunfeast biscuits, Bingo chips and Yippee Noodles, is set to foray into instant coffee and filter coffee segments next year.
While the product is still under development, the tobacco-to-hospitality conglomerate started the process of fixing an advertising agency for the launch two months ago, officials from participating agencies said. Agencies such as Dentsu, Contract, Grey, Rediffusion Y&R, Bates and Mudra made presentations in the company's Bangalore office. G K Suresh, general manager brands, foods business, at ITC is supervising the pitch process, they said. "We were told to make the pitch presentation for both instant and filter s coffee," an official from one of the agenr cies said. "The company also asked us to suggest a brand name and the best possi ble way to launch the product."

Chitranjan Dar, chief executive for foods division at ITC, would not confirm the development. "ITC explores and evaluates g new categories from time to time in each , of its businesses. As a matter of policy, we s do not discuss future strategies and e plans," he told ET. Sources said ITC will launch its coffee brand in the second half of 2015 starting with South Indian markets.

The company will first unveil the brand name and the brand identity, which will lead to the product rollout, they said.

Platinum Media, part of Madison Media Group, which is the agency on record (AOR) of ITC, is likely to handle the media mandate of the new coffee brand, one person said.

ITC, meanwhile, is all set to roll out its ready-to-drink juice brand B Natural, which it added to its portfolio following its acquisition of Bangalore-based Balan Natural Foods earlier this year.