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Costa Coffee on growth spree in India

BANGALORE: It‘s brewing expansion. The UK headquartered Costa Coffee (Costa) is planning to open 10 outlets in Bengaluru by end 2010 and add another 15 outlets in the garden city the year after. This apart, it is planning to expand to other south Indian cities in 2011. Costa Coffee operates in India through its exclusive master franchisee Devyani International Limited (DIL).


The company unveiled its fourth outlet in Koramangala recently and is slated to open another two by this month end.
 
Speaking on Costa Coffee‘s expansion plans, Costa Coffee India CEO Santhosh Unni said, "Overall, Costa Coffee is aiming to add a new store every 15 days in India, taking our count to close to 70-75 stores by the year end."


DIL CEO Virag Joshi revealed that his company intends to have around 500 Costa outlets in India over the next four to five years. Costa operates in 25 countries with 1,600 stores - 1,069 in the UK and 531 overseas.
 
DIL and Devyani Food Industries Limited which have other franchises for global food and beverage brands such Pepsi, KFC, Pizza Hut and Disney Artist have been promoted by RJ Corp.


Costa normally runs a brand building campaign through mass media in cities where it is present or is planning to introduce a new outlet. The media it uses include radio, printed handouts and BTL activities such as road shows. It also uses radio when it changes its menu, which according to company sources, is about once a quarter.
 
Costa‘s spends towards ATL and BTL activities until now have been about Rs18 million per annum, but with newer outlets to be launched soon, this figure will to go up informs Joshi while speaking with www.indiatelevision.com.


New Delhi based BEL Confluence Communications Limited handles the creative and the media buying duties for Costa in India.
 

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