Issue link: https://read.dmtmag.com/i/491365
12 STiR tea & coffee industry international Café Coffee Day IPO BANGALORE, INdIA – Café Coffee Day is weighing an initial public offering that would likely value India's largest coffee chain at more than $1 billion. The company, founded in 1996, operates 1,700 coffee shops and fresh & ground stores and has been adding 150 a year. Its vending division has 10,000 company-owned machines at 1,000 office locations in 350 cities. The company dispensed a billion cups of beverages last year. India's coffee shop market was valued at $272.5 million in 2013 and is expected to grow to $339 million by 2018. Café Coffee Day holds a 64% share of the coffee market according to London-based market research firm Euromonitor International. Founder and president K. Ramakrishnan intends to add 350 outlets in 2014, setting the stage for a 2015 IPO. NEWS Makaibari Tea Estate Sold DARJEELING, WEsT BENGAL – Makaibari Estates has been acquired by the Luxmi Group ending family ownership dating to 1859. Swaraj K. "Rajah" Banerjee will remain chairman and tend the garden. His family retains 10% share in the award-winning estate. A price was not disclosed. "The Luxmi Group will expand Makaibari's distribution and visibility as well as provide managerial and accounting expertise while Rajah will provide his invaluable expertise in organic and biodynamic agriculture and leadership through his pre-emi- nent position in the tea industry," said Anupa Mueller, founder of the Silver Tips Tearoom and Eco-Prima Tea importers, the primary North American distributor of Makaibari's teas. Mueller is Banerjee's sister-in-law. Luxmi Group, headquartered in Tripura, produces 15 million kilos of tea annually on 17 estates. Company chairman Dipankar Chatterjee, is himself a tea planter for 40 years. The 677-hectare Makaibari estate in the Eastern Himalayas "is the jewel in what is called the golden mile of the most important grow region in the world," according to Luxmi Group. The estate has 270 hectares under tea at elevations above 4,500 feet. Teas from the garden sell for as much as $400 per kilo. Pod Pack Expansion BATON ROUGE, LA. – Pod Pack International announced a $10.1 million 75,000 sq. ft. expansion of its manufacturing facility producing compostable coffee and tea pods. "Louisiana is filled with great innovators like the leadership at Pod Pack International, and we have worked hard to ensure they have the resources to thrive, including a strong business climate, a skilled workforce and a world-class infrastructure," said Louisiana Gov. Bobby Jindal. "Pod Pack International's expansion in Baton Rouge is proof-positive that Louisiana is succeeding not only in attracting new businesses, but also in creating an environment where native firms are reinvesting in our state." The new plant will double employment to 38 and add 67 new indirect jobs to meet demand for single-cup coffees and teas "that has seen tremendous growth," said Martin, executive vice president and c.o.o. "Baton Rouge is a great place for doing business and for manufacturers to thrive," he said. "When we announced our growth plans, it was unbelievable how much encouragement we have received from the local Baton Rouge area," said Martin. LED's business expansion and retention group began working with Pod Pack in February. To secure the project, LED offered a $760,000 performance- based award from the Economic Develop- ment Loan Program. Learn more: www.podpack.com Second Cup Restructures MIssIssAUGA, ONT. – Canada's Second Cup Ltd. in June trimmed the headquarters staff from 77 to 53 employees as a first step in the company's revitalization strategy, according to Alix Box, president and c.e.o. The decision is expected to save $2.3 million. "We are getting back to our entrepre- neurial roots with a more efficient team who will make faster decisions and provide more responsive and better service to our franchisees," said Box. The company also changed its franchise model to reduce royalty fees, co-op marketing fees and procurement savings. A typical store is expected to increase its annual profitability by approxi- mately $14,800. Building franchisee trust and improving store sales and profitability are two immediate priorities and today's announce- ment is a positive first step in that direc- tion, she said. "Second Cup is very fortunate to have passionate and dedicated franchisees and our goal is to build on this passion," said Box. Founded in 1975, the company operates 350 stores and serves 1 million coffee and tea beverages a week. Learn more: www.secondcup.com Cha Jing Award to Devan Shah LONG BEACH, CALIf. – Devan Shah, founder of tea import company ITI, was awarded the Cha Jing Lifetime Achievement Award at a black-tie dinner aboard the Queen Mary during World Tea Expo. Shah was cited for his commitment to tea education and innovation by author James Norwood Pratt who praised Shah as American's most influential champion of chai. Shah, who grew up in the Nilgiris tea tea growing region of India established Los Angeles-based ITI 25 years ago. He operates the Chado Tea Rooms in the U.S. and India. He has "extended his love of tea to thousands" said Expo founder George Jage in presenting the crystal trophy. Jane Pettigrew, tea author and expert, was named Best Tea Educator by attendees who voted online for their favorite tea books, tea blogs, tea room, tea room menu, tea website, tea publication, and television commercial. The new product winner in the teaware category was Deluxe Iced Tea Beverage System by Takeya USA; "Tee Pee – Prostate Support Tea" by Nuwati Herbals took the prize in the open class and Biotre by Pacific Bag winning for innovation. Ladalu Chakra from Lumbini Tea Factory in Sri Lanka took the top prize for tea as an ingredient.