10 Unique Leadership Challenges in the Food Industry

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August 10, 2023

The food industry is a dynamic and ever-evolving sector that presents unique leadership challenges. From changing consumer preferences and stringent regulations to sustainability concerns and intense competition, leaders in the food industry must navigate a complex landscape to drive growth and success.

Understanding the unique leadership challenges in the food industry is of utmost importance for anyone aspiring to lead or manage a food-related business. This industry presents a distinct set of challenges that require specific knowledge, skills, and strategies to navigate successfully. By recognizing and understanding these challenges, leaders can proactively address them, make informed decisions, and implement effective solutions to drive their businesses forward.

Supply chain complexity is a significant challenge in the food industry. Managing a complex network of suppliers, distributors, and logistics providers requires strong leadership and efficient coordination. Leaders must effectively manage inventory, address logistical challenges, and ensure timely delivery to maintain customer satisfaction.

Embracing these challenges as opportunities for growth and innovation will position leaders for long-term success in the dynamic and competitive food industry. Leaders need to stay abreast of these challenges to make informed decisions and adapt their strategies accordingly.

Here we will explore 10 unique leadership challenges that are inherent to the food industry, providing valuable insights for both current and aspiring leaders in the industry.

1. Evolving Consumer Demands: One of the key challenges in the food industry is meeting the ever-evolving demands and preferences of consumers. From dietary restrictions and preferences for organic and sustainable products to the growing interest in ethnic cuisines, leaders must stay ahead of trends and adapt their strategies to meet these changing consumer needs.

2. Quality Control and Food Safety: Maintaining high standards of quality control and food safety is a paramount concern in the food industry. Leaders must ensure strict adherence to regulatory requirements and implement robust systems and processes to safeguard the health and well-being of consumers while protecting the reputation of their brand.

3. Supply Chain Management: The food industry operates on a complex supply chain, involving multiple stakeholders such as farmers, suppliers, distributors, and retailers. Effective supply chain management is crucial for ensuring the timely delivery of fresh and safe products. Leaders must navigate logistical challenges, mitigate risks, and establish strong partnerships to maintain a seamless flow of goods.

4. Cost Pressures and Margins: The food industry is highly competitive, with tight margins and cost pressures. Leaders must constantly find ways to optimize operational efficiency, reduce waste, and manage costs without compromising on quality. This requires strategic decision-making, effective negotiation skills, and the ability to identify opportunities for cost savings.

5. Sustainability and Environmental Impact: With growing concerns about climate change and environmental sustainability, the food industry is under increasing scrutiny. Leaders must address sustainability challenges by implementing eco-friendly practices, sourcing ethically, reducing waste, and supporting local communities. Balancing profitability with responsible practices is a critical leadership challenge.

6. Innovation and New Product Development: To stay ahead in the food industry, leaders must foster a culture of innovation and continuously develop new products that meet consumer demands. This involves conducting market research, investing in research and development, and fostering a creative and entrepreneurial mindset within the organization.

7. Talent Management and Retention: Attracting and retaining top talent is crucial for success in the food industry. Leaders must build a strong team, provide opportunities for professional growth, and create a positive work culture. Additionally, the industry’s labour-intensive nature requires effective workforce management, including training, compliance, and employee safety.

8. Brand Reputation and Customer Loyalty: In an age of social media and instant communication, maintaining a strong brand reputation is vital. Leaders must proactively manage their brand image, respond to customer feedback, and engage with consumers through various channels. Building customer loyalty is essential in a competitive market, requiring consistent quality, exceptional service, and effective marketing strategies.

9. Regulatory Compliance: The food industry is subject to numerous regulations and compliance requirements, ranging from labelling and packaging to food handling and hygiene. Leaders must have a comprehensive understanding of these regulations and ensure full compliance across all aspects of their operations.

10. Crisis Management: The food industry is susceptible to various crises, such as product recalls, foodborne illnesses, and supply chain disruptions. Leaders must be prepared to handle crises effectively by implementing crisis management plans, communicating transparently with stakeholders, and taking decisive action to protect the brand’s reputation and ensure consumer safety.

Final Thoughts:

The food industry presents a range of unique leadership challenges that require careful consideration and proactive management. Understanding and addressing these challenges is crucial for leaders to navigate the complexities of the industry and drive their businesses towards success. By recognizing these challenges as opportunities for growth and improvement, leaders can position themselves and their organizations for long-term success in this dynamic and competitive industry.

Chicken prices drop by 30-40% since June peak, defying food inflation trend

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August 10, 2023

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broiler chicken — Chicken (Representative Image)

Chicken prices have experienced a significant decline of 30-40% since reaching a peak of INR 120/kg in June. Presently, they are averaging around INR 80/kg at the farm gate. Interestingly, chicken stands out as the sole major food commodity displaying negative inflation, in contrast to the escalating prices observed in vegetables and pulses.

While chicken consumption typically experiences a decline during the Sawan period each year, the impact is notably more pronounced in the current year.

“Chicken prices at the farm gate had dropped by close to 50% in July to about INR 55-60/kg from a high of INR 120/kg in June, which led to farmers cutting down the bird production. Lower production has helped the prices rise to an average of INR 80/kg at present,” said Gulrez Alam, secretary general, All India Poultry Breeders Association.

Dr. Mantra secures $200K bridge funding led by 100X to revolutionize Ayurvedic wellness landscape in India

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August 10, 2023

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Shivansh Jain & Takki Zain, Co-Founders of Dr.Mantra

Dr. Mantra, a rapidly expanding direct-to-consumer (D2C) enterprise that is reshaping the landscape of the ayurvedic wellness sector for the Indian market, has successfully secured a bridge round of funding amounting to approximately $200,000. This funding initiative was led by 100X and gained support from notable angel investors including Deep Bajaj and Mohit Bajaj, the visionaries behind Sirona, a prominent brand in the FemTech realm.

The allocated funds are earmarked for driving the expansion of the brand, with the objective of doubling its operational capacity, as a precursor to embarking on a series A funding round. Presently, negotiations are underway with several potential funds to facilitate this strategic advancement.

Established in 2021 by Takki Zain and Shivansh Jain, Dr. Mantra emerged with the purpose of addressing a spectrum of health issues, particularly excelling in the realm of kidney stone management. Their overarching mission revolves around revitalizing the ancient Ayurvedic heritage that spans 5000 years, but with a distinctive approach. Their ingenious strategy involves the harmonious integration of traditional Ayurvedic wisdom with contemporary medical practices, culminating in exceptionally effective products and solutions.

Renowned for its contemporary Ayurvedic methodology in treating individuals with kidney stones, the brand’s influence has extended to over 20,000 lives within the past 2.5 years. A notable milestone was achieved in the recent month of July 2023, where the brand achieved an astonishing surge in revenue, tripling its earnings. Impressively, this growth was achieved while upholding favorable unit economics, maintaining a Monthly Recurring Revenue (MRR) of INR 60 Lakhs. It’s worth mentioning that Dr. Mantra had previously secured funding of 1.25 Crores from 100X.vc, led by Sanjay Mehta and his team.

Speaking on the fresh round, Takki Zain, Co-Founder, Dr Mantra said, “I am absolutely delighted to have Deep and Mohit on board with us. Their invaluable support serves as a great source of motivation for us to continue our work in the industry. At Dr Mantra, we take pride in being part of a purpose-driven brand that not only speaks its values but also lives them every day. Thanks to our dedicated team without whom this wouldn’t have been possible.”

Speaking on his investment in Dr Mantra, Deep Bajaj Co-founder and CEO, of Sirona said, “The unwavering determination of the founders to build a profitable venture truly impressed us. Such companies, where founders are focused on growing the company on customer love and trust, have the potential for immense success. Any team working with the right values is destined for greatness.”

Dr. Mantra doesn’t limit its distinctive offering solely to products; it expands into a comprehensive service philosophy. This approach encompasses individualized guidance from medical experts, customized diet plans, and ongoing assistance, thereby guaranteeing an all-encompassing healthcare journey for its clientele. Empowered by a workforce of more than 50 committed specialists, Dr. Mantra is committed to reshaping the paradigm of effective treatment for lifestyle ailments, devoid of adverse effects. Bolstered by this recent injection of funding and an unswerving dedication to excellence, Dr. Mantra stands primed to establish its preeminence in the realm of Ayurvedic wellness and alternative medicine.

Wonderchef unveils 26th exclusive store in India, sets ambitious target of 50 stores by 2025

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August 9, 2023

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Wonderchef, the prestigious brand recognized for its high-quality cookware and premium kitchen appliances, has inaugurated its 26th exclusive store in Mumbai Malad, India. Reflecting European aesthetics that align with the brand’s commitment to design and quality, this fresh establishment signifies another significant achievement in Wonderchef’s journey to transform the culinary landscape for countless households across India.

Driven by the goal of extending its outreach and delivering unparalleled kitchen solutions, Wonderchef envisions establishing 50 exclusive stores throughout India by 2025. Alongside this, the company boasts a substantial presence in approximately 15,000 multi-brand stores and over 2,500 modern trade outlets. Focusing on the future, Wonderchef harbors ambitious intentions of broadening its influence to encompass 25,000 multi-brand stores and 3,500 modern trade establishments within the coming two years. This strategic initiative will facilitate enhanced accessibility for a larger customer base to acquire its collection of top-tier kitchenware offerings.

Ravi Saxena, Founder, and CEO, Wonderchef, expressed his optimism about the company’s future growth prospects, stating, “With our relentless focus on product innovation, retail expansion, and omnichannel development, we are confident of achieving about 30 percent growth yet again this fiscal year. We are eagerly looking forward to the brand surpassing the 700-crore mark this fiscal as we continue to bring joy and convenience to kitchens around the nation.”

Beyond the borders of India, Wonderchef’s influence extends far and wide, encompassing a burgeoning global presence that spans approximately 25 nations across five continents. This expansive international growth underscores the brand’s steadfast dedication to providing exceptional products and inventive culinary solutions to a diverse array of customers worldwide.

Renowned for its distinctive philosophy centered on Health, Taste, and Convenience, the company takes pride in its introduction of innovative kitchen products designed to meet diverse culinary needs, thereby promoting healthier and more enjoyable cooking experiences. Those interested in exploring Wonderchef’s exclusive range of cookware and premium kitchen appliances are encouraged to visit the recently inaugurated store at Infinity Mall, Malad (Mumbai).

Tata Soulfull expands snack lineup with nutrient-rich Ragi Bites Choco Sticks

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August 9, 2023

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Tata Soulfull, a prominent name in the realm of health-conscious snacks and Breakfast Cereals, under the esteemed Tata umbrella, has enriched its assortment of snacks by introducing Ragi Bites Choco Sticks. These delectable treats feature a luscious chocolate cream filling ensconced within a crispy wafer crafted from nutrient-rich millets, making them a source of delight for both youngsters and mothers alike. Tata Soulfull operates as a brand within Tata Consumer Soulfull Pvt. Ltd., a fully-owned subsidiary of Tata Consumer Products Ltd. With the unveiling of this novel offering, the brand sets its sights on fortifying its presence within the realm of children’s snacks, further enhancing the prominence of its flagship brand, Ragi Bites, known for offering wholesomely nutritious snacking options.

The distinctive factor setting Ragi Bites Choco Sticks apart is its unique composition. Harnessing the nutritional benefits of millets and entirely eschewing maida (processed flour), this offering stands as a nourishing selection tailored for children. This product showcases an amalgamation of intensely chocolaty cream enclosed within a crispy wafer crafted from millets, thoughtfully catering to the palate preferences of youngsters. Moreover, it garners the endorsement of mothers due to its incorporation of millets, acknowledged for their nutritional richness, and its noteworthy feature of containing substantially lower additional sugar content in comparison to the primary competitors in the market.

The offering will be accessible in a delightful chocolate flavor option, and it will be presented in cost-effective packaging options. A single stick, weighing 9.5 grams, will be priced at INR 5, inclusive of all taxes. Furthermore, a jar containing 30 sticks will be available for INR 150, also inclusive of all taxes. This approach guarantees availability through Tata Soulfull’s expansive General Trade distribution network, aligning with its objective of bringing “desh ke millets” to consumers across the nation in formats that are both convenient and budget-friendly.

Speaking on the launch, Prashant Parameswaran, MD, and CEO, Tata Consumer Soulfull said, “We are delighted to announce the launch of the Tata Soulfull Ragi Bites Choco Sticks, at an affordable price point of INR 5 combining the deliciousness of chocolate with the nutrition of millets. With this launch, we aim to increase the accessibility to millet-based products, and further strengthen our presence in the kids’ snacking category. Tata Soulfull is dedicated to creating innovative millet-based products that align with modern consumer lifestyles. For Ragi Bites Choco Sticks, we developed a unique formulation, which retains the crunch factor of the product while preventing easy breakage of the product which is a consumer pain point in the category. With this launch, we aim to move towards making nutritious snack options, available and accessible to all.”

Tata Soulfull is committed to promoting ‘Desh ke Millets’ such as Ragi, Jowar & Bajra, in contemporary forms, reaching every Indian household through a range of products including Millet Muesli, Ragi Bites breakfast cereals, and Masala Oats+. With India’s largest value-added millet processing factory at Bidadi in Bengaluru, the brand continues its endeavor to innovate and introduce products that are crafted to cater to the evolving tastes and preferences of consumers, while retaining the essence of these ancient grains.

Hungry Buddha unveils second virtual kitchen in Lower Parel, serving authentic East Asian flavors to Mumbai

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August 9, 2023

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Hungry Buddha has proudly launched its second virtual kitchen, located in the Lower Parel district. Celebrated for its strong ties to East Asian customs and cuisine, the establishment now operates as an online kitchen, serving a range of Asian delicacies to the residents of Mumbai’s Bandra-Juhu neighborhood.

With careful consideration, the brand strategically chooses a prime location in Lower Parel, a vibrant center known for its upscale dining opportunities, drawing the attention of both the local residents and the business community alike.

The menu showcases distinct flavors from Burmese, Thai, and Malaysian culinary traditions, complemented by their renowned Buddha Bowls, delivering a nourishing and affordably priced dining choice.

Shaan Gidwani, Founder & Managing Director at Acapella Hospitality, said, “Hungry Buddha is a brand that’s personally very close to my heart. With initial hiccups and no sight of success on the horizon, months of relentless efforts by our ops, kitchen and marketing team have finally begun to pay off as we’ve started witnessing exponential growth and higher brand recall than ever before.”

Presenting an extensive selection, the menu encompasses everything from soups and appetizers to comprehensive noodle and rice preparations. Among the appetizers, you’ll find choices such as Cottage Cheese Satay, Honey Glazed Grilled Chicken Skewers, as well as Grilled Chicken in Black Pepper or Green Pepper Prawns, ensuring a generous array of options.

The main course comprises of curries served in your preferred sauces. The Buddha Bowls have won over the hearts of loyal patrons. Options like Chicken Laksa curry bowl, Veg Phad Thai Bowl, Korean Kimchi Bowl, and Veg Kung Pao Bowl offer an enticing array of exotic ingredients and a burst of fresh flavors. These options are particularly budget-friendly for individual orders.

Classic dishes like Paneer Chilli, Veg Burnt Garlic Rice, Red & Green Thai Curry, Schezwan Noodles, and more are highlights.

Even vegans have an extensive array catering to their preferences. Stir Fried Mushrooms with Bell Peppers, Pink Peppercorn Tofu, Tofu Hunan, and Vegan Tofu Satay are designed for an authentic Asian meal.

Hatsun Agro Products aims for global expansion of beloved ‘Ibaco’ ice cream brand amidst soaring popularity

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August 9, 2023

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Dairy manufacturer Hatsun Agro Products has formulated strategies to enhance the global reach of its well-received line of ice cream products, as announced by the company on Wednesday. Under the renowned ‘Arokya’ brand, Hatsun Agro Products offers an array of items such as milk, chocolates, cakes, and, under the ‘Ibaco’ brand, a variety of ice creams. The ‘Ibaco’ label has achieved significant popularity, solidifying its position as one of the most cherished ice cream brands.

The latest annual report from the company has attributed the launch of numerous parlors, fresh product selections, and captivating flavors to the overwhelmingly positive feedback received from customers. The brand’s commitment to providing novel product experiences for its customers remains steadfast, as stated by the company. According to the report, the ice cream market in India attained a valuation of INR 194.1 billion in 2022. Anticipating future growth, experts predict that the Indian ice cream market will demonstrate a Compound Annual Growth Rate (CAGR) of 17.5 percent from 2023 to 2028. Notably, during the same year, the company successfully introduced the Arun Ice creams range to new international markets, specifically Singapore and Maldives.

“With the initial response from consumers being mostly positive, the company is now looking to expand distribution and improve its product range. Arun Ice-creams aims to fortify its position in Seychelles through increased marketing efforts,” it said.

On exploring overseas markets, the company said, “new markets are looking to be tapped in the United States, African and Gulf regions”.

Additionally, the company has unveiled the ‘Licks’ line of ice cream, featuring an assortment of fruit-infused ice lollies designed for year-round enjoyment, with a particular emphasis on the summer season. Furthermore, the company has brought forth a new line of ice cream shakes, available in flavors such as chocolate, strawberry, and cotton candy. Within the realm of ‘Ibaco’, the company is extending its offerings to encompass a variety of desserts, including cheesecake, pop tarts, and muffins, affording customers the opportunity to incorporate their preferred ice cream flavors in creative ways.

Hatsun Agro Products has utilized the substantial cold storage facilities located in Tamil Nadu, Andhra Pradesh, and Telangana. Notably, the company’s largest ice cream facility in Asia is the Govindapur plant in Telangana, strategically catering to the heightened demand for ice cream during the summer season.

Hatsun Agro produces ice creams, ice cream cakes, and kulfis at a daily production capacity of 196,000 kilograms, catering to the demands of its consumer base. With a widespread presence, the company operates more than 3,600 Hatsun Agro Products (HAP) Daily Outlets and has successfully expanded its footprint into various regions including Maharashtra, Kerala, Odisha, Goa, Chhattisgarh, Madhya Pradesh, West Bengal, Jharkhand, Gujarat, and the Andaman Islands.

Health startup What’s Up Wellness secures INR 14.40 Crore investment from Unilever Ventures

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August 9, 2023

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Providing gummy supplements, What's Up Wellness has catered to over 2.5 lakh users throughout India so far. (Representative Image)

Unilever’s venture capital division, Unilever Ventures, has injected a sum of INR 14.40 crore into the health and wellness firm known as What’s Up Wellness. This investment aims to bolster the startup’s workforce and facilitate the advancement of its product development efforts.

“The (seed) funding round was led by its sole new investor, Unilever Ventures…Notably, this marks Unilever Ventures’ first investment in a health & wellness company,” Gurugram-based What’s Up Wellness said in a statement on Wednesday.

The funding round also saw participation from a few of What’s Up Wellness’ existing investors, it said.

Pawan Chaturvedi, Partner-Asia at Unilever Ventures, said, “Investment in What’s Up Wellness is in line with our strategy of supporting and investing in promising indie brands in the health & wellness space. India presents a large opportunity for the wellness segment and What’s Up Wellness, with its innovative and modern formats, aims to capture this fast-transforming market.”

Watch our exclusive conversation with Vaibhav Makhija, Co-Founder of What’s Up Wellness:

What’s Up Wellness has announced its intention to allocate the newly acquired funds towards expanding its team, advancing growth initiatives, and scaling its operations. Additionally, the funding will be utilized for the creation of a range of innovative products designed to address the primary challenges encountered by its users.

During the year 2022, the company secured investments from a group of angel investors, notably including the Co-Founders of Sirona Hygiene and Clovia. Subsequently, What’s Up Wellness gained prominence by participating in Shark Tank India Season 2, where it successfully secured a funding amount of INR 60 lakh from three prominent investors on the show: Aman Gupta from BoAt, Vineeta Singh from Sugar Cosmetics, and Anupam Mittal from Shaadi.com.

According to Sayantani Mandal and Vaibhav Makhija, Co-Founders of What’s Up Wellness, the funding round is “yet another significant milestone in our journey of building What’s Up Wellness as a trailblazer” for the D2C (direct to consumer) wellness and nutrition space in the country.

Providing gummy supplements, What’s Up Wellness has catered to over 2.5 lakh users throughout India so far. The company also has intentions to introduce 12 new products within the next two years.

Experiencing a growth of over twelvefold in the previous year, the company currently holds an accounting rate of return (ARR) amounting to INR 30 crore, accompanied by a 40 percent recurrence rate among users. What’s Up Wellness has expressed its ambition to evolve into a INR 100 crore-brand within the forthcoming two years.

Bikano diversifies portfolio: Launches ‘Swad Anusar’ subsidiary for branded spices

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August 9, 2023

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Snack and confectionery producer Bikano has entered the domain of branded spices, a sector that has experienced rapid expansion in recent times. Bikano, a well-established name affiliated with Bikanervala Foods Pvt Ltd, has unveiled a fresh subsidiary label named ‘Swad Anusar’. Through this new brand, the company has revealed its plans to introduce an assortment of mixed spices, as stated in an official company announcement.

Bikano intends to collaborate with spice cultivators and suppliers, ensuring both quality and sustainability. The company is committed to meeting the necessary certifications from regulatory authorities like FSSAI, ISO, HACCP, and GMP.

Commenting on the development, Bikano Director Manish Aggarwal said, “Our snacks and namkeen have always been cherished for their unique blend of spices that make them enticing and delicious. This inspired us to expand our horizons and offer the same experience to daily meals. Thus, the launch of our Bikano spices sub-brand, Swad Anusar, comes as a natural progression.”

Over the past few years, a number of prominent FMCG companies, including Dabur, Emami, Tata Consumer Products Ltd, and ITC, have ventured into the spices industry.

Bikano intends to introduce Swad Anusar through Bikanervala establishments nationwide, as well as on major e-commerce platforms. The company has outlined its strategy to allocate resources for marketing and promotional endeavors, encompassing Above-the-Line (ATL), Below-the-Line (BTL), and digital campaigns.

Established in 1950, Bikano has become a well-recognized packaged snack brand within the country, boasting a significant market presence and extending its reach to more than 35 nations worldwide.

From beans to brew: Coffee lovers hit as prices climb due to global shortage

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August 9, 2023

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Whether it’s basic staples like pulses and vegetables or luxurious gourmet delicacies, the cost of food has surged, placing a strain on consumers’ wallets and presenting a challenge for policymakers as they deliberate over interest rates, all while savoring their coffee. However, even the realm of coffee, a cherished potion that frequently acts as the dawn’s soothsayer, has joined in by securing a prime position on the pricing scale.

Get ready, coffee aficionados, as it seems your cherished cup of brew is poised to whisk you through a thrilling journey in the unpredictable realm of caffeine economics.

The rise in expenses can be attributed to a worldwide scarcity of coffee beans, primarily originating from Brazil and Vietnam, along with unanticipated rainfall impacting the quality of beans in India. This adverse scenario has resulted in a notable upswing in prices within the domestic market.

Coffee traders, who typically source top-quality beans from Chikkamagaluru in Karnataka, have commenced passing on this surge in prices to their clientele.

According to Latha Aravind, who resides in Mumbai’s Matunga, the price of standard mixed coffee grounds, a combination of Robusta and Peaberry beans, has climbed from approximately INR 580/kg to roughly INR 640 to INR 650/kg.

“Prices have shot up and may keep rising,” she said.

Rajesh Gandhi, the proprietor of Gandhi’s Coffee, a renowned coffee trading business in Pune, mentioned that he had to transfer a price increase of INR 50/kg to the final consumers. This adjustment was necessitated due to a nearly 50% escalation in the cost of Robusta beans and around a 15% increase in the price of Arabica beans.

Ajit Raichur, a coffee trader associated with Kumardhara Traders, explained that coffee prices usually undergo an annual revision in January. However, this year saw an extra increase of INR 50/kg across all available bean varieties in the month of July.

GM Dharmendra, a wholesaler dealing in green coffee (unroasted beans) and operating from Bengaluru, expressed that he has experienced a decline of 30% to 40% in his business during the recent months.

“Many small coffee retailers in the area have shut shop or they are buying poor quality beans at cheaper rates. Many customers have shifted to instant coffee,” he added.

The effects of climate change have been felt acutely in the coffee-growing area of Chikkamagaluru. Rohan Kuriyan, the manager at Balanoor Plantations and Industries, revealed that there has been a 20% reduction in yield attributed to unseasonal rainfall during the flowering period, in contrast to the yield of the previous year.

“The average cost of picking has also gone up. We ended up doing four rounds of selective harvesting instead of the usual two because of the uneven ripening of the cherries,” he added.

“With some positive news about better crop in Brazil, Arabica prices have started softening in the international markets. However, prices are expected to be a bit higher in the domestic market which is growing at double digits because of demand and less production,” Challa Srishant, MD of CCL Products (India) and member of the Coffee Board of India, said.

CCL Products, recognized for its ‘Continental’ coffee label, has increased the cost of a 200g jar from INR 280 to INR 360 over the span of a year, and there are intentions for an additional 10% rise in the upcoming quarter. Analysts within the industry have observed that the narrowing price difference between Arabica and Robusta beans has drawn consumers toward the smoother and sweeter characteristics of Arabica beans.

“For planters, operational costs have gone up – right from labour costs to fertilizer and pesticide costs. Coffee prices (Arabica) are a little lower now than they were last year but traders usually buy in bulk and therefore it appears like they are protecting their bottom line in case prices rise again,” Mahesh Shashidhar, Chairman of Karnataka Planters’ Association said.

The harvest period for Robusta beans is still half a year to seven months away, and there is an air of uncertainty surrounding the upcoming crop. Karnataka continues to be a significant contributor, accounting for 70% of India’s coffee output, while Kerala and Tamil Nadu also engage in coffee cultivation. Those involved in the industry have collectively absorbed a range of price hikes at various intervals. While price adjustments have not been implemented thus far, Amit Bhatta, the Founder of the specialty coffee brand Aeka Coffee, acknowledged that an additional 15% to 20% increase could potentially result in passing this burden onto the final consumers.

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