Leading the Global Charge with Sustainability and Quality
Mumbai: Coffee has become an integral part of the Indian beverage landscape, evolving from a niche market to a mass-consumed product. In India, coffee consumption is growing steadily, driven by changing consumer preferences, a burgeoning café culture, and rising disposable incomes. Traditionally dominated by tea, the Indian market has seen a rapid shift towards coffee, particularly among younger demographics and urban dwellers. India, one of the top coffee-producing nations, plays a crucial role not only as a producer but also as an emerging consumer market.
Globally, coffee trends are evolving with a focus on sustainability, ethical sourcing, and innovation. Consumers are increasingly looking for high-quality, responsibly sourced coffee, leading to a surge in demand for specialty and single-origin varieties. Additionally, technological advancements in production and brewing, along with innovations like cold brew, ready-to-drink options, and plant-based alternatives, are reshaping the coffee industry. Climate change is also a significant factor, driving companies to adopt more sustainable farming practices and invest in technological solutions to maintain crop yields and quality.
India’s coffee sector is poised to benefit from these global trends, as both local consumption and exports grow, providing opportunities for brands to expand and innovate.
In 1982, as Karnataka’s coffee plantations flourished, Allana Group embarked on a journey to redefine the Indian coffee industry. Located in Bangalore, India’s coffee-producing region, the Coffee Division was established with a deep passion for the bean and a vision to expand globally. Over the past four decades, Allana has built a strong reputation for quality, reliability, and sustainable practices.
The company’s green coffee is exported to major markets worldwide, including Europe, Australia, the USA, and the Middle East and North Africa region. With a processing unit in Mangalore and warehouses in Cochin and Mangalore, Allana ensures efficient operations and effective control over its supply chain.
Allana Group has maintained its competitive edge through strategic investments in machinery upgrades and a strong commitment to sustainability. The company’s workforce, predominantly female, is dedicated to upholding the highest standards of quality and ethical practices.
At present, the global coffee market is expected to grow rapidly at a 6.3% CAGR, expanding from its current size of $64.8 billion in 2023 to $98.76 billion by 2030. This significant growth reflects evolving market dynamics and rising global demand for quality coffee products. As a leader in the sector, Allana Group’s Coffee Division is well-prepared to navigate these changes, leveraging technological advancements and sustainable practices to stay ahead in this expanding market.
M.P. Devaiah serves as the Business Head of the Coffee Division at Allana Group, where he oversees the strategic growth and development of the company’s coffee segment, which plays a pivotal role in the group’s overall revenue. With over 20 years of experience in the coffee industry, he has led key initiatives that have expanded Allana’s coffee portfolio by 30% and boosted market share in critical regions.
Under his leadership, the division has prioritized sustainable sourcing practices, achieving a 25% reduction in environmental impact. Devaiah’s strategic vision and deep industry knowledge have been instrumental in positioning Allana Group as a prominent player in the global coffee market.
MadeInMedia’s Kalpana Ravi in conversation with M.P. Devaiah, Business Head of the Coffee Division at Allana Group, on the growingdemand of Coffee, how Allana Coffee has aligned with the global demands and preferences, initiatives in the Middle – East , Europe and US and much more…..
Excerpts:
What was the initial vision behind Allana’s Coffee Division, and how has it aligned with the growing demand for sustainable and high-quality coffee globally?
Although Allana Group has been trading in agricultural products since 1865 coffee was not in their thoughts at that time. At the beginning of the eighties, Allana considered coffee as one of the commodities mainly consumed in the West as a product that was gaining traction and hence started the export of coffee beans and the liberalisation of the Indian economy in general in the nineties further gave impetus to this and Allana made further investments in acquiring factory, etc.
In what ways does Allana Group add value to the global coffee market, and how does the company ensure its green coffee meets the diverse preferences of international consumers?
The team at Allana understood that Indian coffees have certain aspects that would suit certain types of brews and hence instead of offering only regular commercial bulk coffees better qualities were identified and made to suit the specific requirements by processing further in our factories. We worked closely with some buyers to understand their needs and prepare the grades of coffee accordingly rather than offering as it was and this helped us to be their preferred supplier.
What initiatives has Allana undertaken to build long-term relationships with buyers in major markets like Europe, the USA, and the Middle East?
There was no multinational commodity companies present in India at that time and the coffee team had to travel extensively, attend the exhibitions and fairs, and make the buyers appreciate and understand that Indian coffee meets their standards and in fact enhances the quality, mainly to roasters in Europe and the Middle east. These visits had to be then cemented by timely shipments and as per their quality requirements in order to build the confidence in the minds of the buyers to consider Allana as a formidable and committed shipper of quality coffees from India. (US due to the distance from India would mainly source from Brazil so many exports from India)
Can you provide details on Allana’s investments in advanced machinery and processing technology, and how these upgrades have improved product quality and operational efficiency?
Investments have been made on a continuous basis to be ahead in terms of quality by building new warehouses, installing modern machinery for grading/gravity separation, and installing the best colour sorters by importing the same from reputed companies to have an edge on quality apart from establishing a fully modern cup tasting laboratory.
How is technology playing a role in ensuring traceability, quality control, and sustainability throughout Allana’s coffee supply chain?
As the world is moving more towards sustainability and traceability etc the company has focussed more on certifications as that would be a mark of establishing that a company is adhering to sustainability and traceability standards. As we are moving towards further requirements of the EU the focus now would be to use APP-based technology which is used to capture the farm boundaries as Polygons which in turn could be traced back with geolocations to exactly pinpoint where the coffee has originated from.
With global coffee consumption on the rise, what are Allana’s strategies for expanding its presence in new and emerging markets?
Coffee is undoubtedly a star beverage and due to the very nature of the beverage itself which is magnetic in terms of aroma and taste more and more people of all ages are consuming this beverage naturally the consumption is on the rise and Allana is looking to grow organically and inorganically by looking at all possible opportunities to grow in India as well as overseas.
Expand on the challenges Allana faces in the Indian coffee market, such as competition from domestic and international players, fluctuating coffee prices, or changing climatic conditions that affect coffee production?
Indian coffee exports were being managed by domestic exporters with Allana being a key player in developing various markets over a period of time. As the production increased and in turn exports, international players started their operations in India by setting up full-fledged offices with their own processing factories also. Some of them acquired some existing entities.
The arrival of Many International coffee companies that would otherwise buy from us was a big change and challenge. The competition hence increased manifolds as the international companies could offer coffees from many other origins also to roasters and Allana had to circumvent this by their own strategies. Fluctuation of coffee prices has always been a big challenge for a coffee exporter and optimum usage of the futures market helps to an extent. In the last few years, the situation has been further complicated by climate change with extreme drought or excessive rains resulting in unforeseen and unpredictable supply situations both domestic as well as globally.
Can you elaborate as to how Allana is navigating these challenges through innovative practices, partnerships with local farmers, or exploring new coffee-producing regions.
Having been in the industry for a long time has a loyal supplier base due to our commitment in terms of prompt payments, and consistent adherence to quality irrespective of price fluctuations with the support of our long-term buyer network Allana is negotiating these challenges in order to retain the network of suppliers and buyers.
What sets the group apart from multinational coffee competitors, and how does the company maintain its strong reputation for quality and reliability?
The company is well known in the domestic market for being in the market for buying throughout the year, unlike many other buyers. This makes us the first choice for many suppliers as they get the liquidity for their stocks. As we maintain certain standards for receiving coffee by adhering to the quality it helps us to in turn maintain consistency in our supplies to the buyers and over a period of time the buyers have become aware that when they buy from Allana they are assured of certain standards consistently and by sticking to our shipment schedules the buyers are guaranteed of deliveries in the period that we mutually agree.
What is the commitment to sustainability and its predominantly female workforce contribute to its competitive edge in the global market?
With the kind of change in weather patterns that we are seeing globally in terms of climate change and as everyone is looking at solutions, sustainability seems to be a key solution to achieve some progress towards changing the way anything in general and agriculture, in particular, is being carried out.
Coffee as a product is an important product that can help a long way in this approach hence at Allana we started with having agronomists convey the message of sustainability directly on the one side and the other is to start getting the certifications which helps us to convey to the buyers that we are serious in contributing to this aspect which is appreciated by those companies who are also moving in the same direction. Employing a female workforce as much as possible helps in empowering a family to lead a better life which some buyers appreciate.
Detail Allana’s commitment to sustainability. You can include information on how the company reduces its carbon footprint, manages water resources, or uses eco-friendly farming techniques in partnership with coffee growers.
The company has been focussing more on the sustainability aspects for many years as this is an important issue being addressed globally. We have a team of agronomists who are working closely with certifying agencies like RFA etc which by their audits ensure that sustainable practices are being followed in the farms.
This approach is now gaining more momentum and more and more farms are being certified. Allana along with the support of some of our buyers regularly educates the farmers about moving towards Eco-friendly fertilizers such as Vermi compost etc. Educating about the usage of chemicals, pesticides etc which are more in tune with nature is also part of our efforts.
Market expansion & future growth, are you exploring new product lines, like specialty coffees or ready-to-drink options, to meet changing consumer trends.
We are the pioneers of the supply of specialty green beans from India. Coming to the value-added sector, As globally Coffee as a beverage is evolving and consumption is increasing, especially among the younger generation, Allana is well aware of the need to grow and as a first step, a roasting unit has been established. The company is looking to add to the basket and plans to grow organically and inorganically in a short period of time.
At present, the global coffee market is expected to grow rapidly at a 6.3% CAGR, expanding from its current size of $64.8 billion in 2023 to $98.76 billion by 2030. Your thoughts on this?
As mentioned, Coffee is becoming a beverage of first choice among the younger generation slowly but surely and also moving from basic soluble coffee to special coffees, single origins, single estate, micro lots, differentiated preparations at the farm level, different brewing methods, cold brews, flavoured coffee, and the list is endless. Headwinds are being faced suddenly due to climate changes thus putting brakes on production which was in any case slowing down due to lower prices at one phase not too long ago. The Coffee sector seems to be moving towards exiting periods on many fronts and Allana would want to be part of this action one way or the other.
