Brewing since 1971

CHENNAI:Coffee is a daily morning ritual in most south Indian households. The city takes pride in its authentic filter coffee culture, complete with the davara, tumbler and the heady fragrance of fresh coffee beans. One of the older and revered brands of filter coffee is Leo Coffee. CEO Venu Srinivasan, a third-generation entrepreneur next in the line for the family business, an alumnus of Don Bosco School and Loyola College, shares his thoughts on the current coffee market and the challenges he faces.
100-year legacy

Venu’s family has been in the coffee business since the 19th century, starting with his great-grandfather P R Karupiah Nadar. It was in 1971 when Venu’s grandfather P R Bhaskaran started Leo Coffee in Madras, named after Father John Peter Leonard, the then-archbishop of Madurai. The 100-year-old office building at Mylapore on South Mada street reminds people of the brand’s rich heritage. “Hard work and discipline are the two qualities I picked up from my father and grandfather. Somehow, I feel that discussions at home seem to be lagging in family-run businesses, as people fear contradicting opinions. The ladies of our house also play a role in back-end decisions. My mother constantly updates me on feedback from her friends. I still face challenges in making decisions,” shares Venu.

Unlike most of us, Venu spent his childhood days in luscious coffee estates, but he did not have any serious thoughts of taking it up as a business. However, after five years of working in the corporate world, Venu came back to India in 2007 to work at the family-run business and shouldered the responsibility as a CEO in 2010. Considering the challenges in uplifting an already existing prestigious brand, we ask about the aspirational value for ground coffee among present-day youngsters. “Anything retro is coming back and this generation likes stronger flavours. However, we observe multiple coffee places mushrooming on the highways. But sustaining them in the long-run is a daunting task. We want to do it in a more organised way by bringing in machines so that the consistency in taste is maintained,” explains Venu, who also started a sub-brand called Mylapore Mocha two years ago to cater to the younger crowd. He aims to introduce a south Indian themed café with traditional snacks.

Bean to cup

“We have coffee estates in Palani hills of Kodaikanal. For the obvious reasons, the coffee beans that we use for the brand are all sourced from parts of Chikmagalur, Coorg, Kushalanagar and Hassan of Karnataka. With an evergreen plantation and rich soil fertility, this state contributes to the best coffees even at a global level,” he explains.

We learn that India is the fifth largest producer of coffee (three lakh tones per annum). While the general per capita consumption is 80 gram, south India is on the higher end. In India, the consumption of tea is 12 times higher. “It’s a 60 and 40 ratio for instant and filter coffee. Instant coffee is more organised and popularised now. Filter coffee is fragmented with multiple small players and family businesses,” says Venu. Coffee is a seasonal product from November to January. Traditionally, supply was a problem but now farmers have huge quantities stocked up around the year. “The import duty on coffee is 110 % since we are a producing nation. The market for exotic coffees from Brazil and Colombia is very small.”

Venu  feels that the 90s was the golden era. After 2000, trends have changed with the concept of cafes and cold coffees. The youth was not keen on dropping by the store for a freshly ground coffee. This led to stores being set up inside markets for customers to get their customisable ground coffee powder. Despite the criticisms, the idea fared well, resulting in 350 shops and 40 outlets. Their expanded product line included a few variants of tea and more blends of coffees such as Peaberry, Special A and Madras Blend.  “In the initial stages, raising capital, constant pressure from family and stake holders was a huge challenge. The only way was expansion with the limited resources we had. Our plan is to expand to 500 shop-in-shop stores. Brand loyalty takes a lot of effort and barriers are immense. What looks flowery on the outset takes a long time to stabilise,”says Venu.