Rage Coffee brews plan to grow three-fold this calendar year

Rage Coffee, which saw its revenues increase nearly five times during the last calendar year, is expecting a three-fold growth in turnover this year backed by the launch of innovative flavours and strengthening of distribution and marketing footprint.The company, which manufactures, markets and distributes innovative coffee products, is betting big on the growing demand for coffee in Tier II and Tier III towns.

According to Bharat Sethi, Founder, Rage Coffee, there are several gaps in the coffee market in India, which has been largely dominated by two or three large instant coffee players. The market calls for innovation in brewing, sourcing and packaging.

“There was a huge gap in the coffee market in India and there was no lifestyle brand that people could look up to. We wanted to upgrade an average Indian consumer and create a product that could compete with high-end specialty café. It is a complicated market currently and nearly 75 per cent of it is led by two very large players; we wanted to break this category,” Said Sethi

The Indian coffee market is estimated to be close to Rs.11,700 crore at present and is expected to double to Rs.24,800 crore in the next five years. The company, which currently holds a small share in the market, is looking to grab “a lion’s share” in the high-growth segment with its strong channel and distribution network.

Rage Coffee has a proprietary small-batch crystallised coffee that is infused with six plant-based vitamins that synergistically work with caffeine bringing in a “distinctive kick” that feels and tastes like freshly ground coffee. It is a natural plant-based coffee brand made of 100 per cent Arabica and sourced exclusively from high farms in India and Ethiopia. This apart, the company has exotic flavours such as Irish hazelnut, crème caramel, sparky orange and dark chocolate, among others.

“The millennials are driving coffee consumption in India and they care about the taste, aroma and experience. So, we built functional coffee products and also introduced coffee with plant-based vitamins. We launched new flavours before the pandemic when coffee shops were closed and we saw a huge jump in numbers (sales),” he said.

Since its launch, Rage Coffee has managed to attain upwards of 35 per cent orders as repeat orders on its direct-to-customer website and nearly 70 per cent of revenue is generated from repeat buyers.
Nearly 50 per cent of its sales come from online, of which around 75 per cent comes from its own website and the remaining through marketplaces. The remaining 50 per cent of its sales come from the offline channel.

Rage Coffee retails its products through its website, other e-commerce platforms like Amazon, and over 600 offline stores. Plans are afoot to increase its retail touch-points to around 3,000 by the end of this year.

While the company continues to bet big on the digital platform for sales in top metros and Tier I cities, it is looking to focus on ramping up its offline wholesale channel for strengthening presence in Tier II and Tier III towns.

Rage Coffee also aspires to strengthen its presence in international markets such as the US, the UK and other markets.

How will the product strategy of Rage coffee change as their product nears maturity? Explain with the help of Ansoff’s Growth share matrix?

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