Authentic coffee? Toffee Coffee roasters it is! 

Fresh from episode 19 of Shark Tank India, 

Founded in 2019 by Nandhini Srivastava and Rishab Nigam, Toffee Coffee Roasters is a specialty coffee brand that takes you on a global coffee adventure. They source their beans from various coffee regions around the world, allowing you to experience the diverse flavors and aromas of different origins.

Nandhini and Rishab’s unique approach to presenting their products starts with a playful news reporter-style pitch, highlighting their extensive range. This includes:

• Specialty Instant Coffee: For a convenient and flavorful pick-me-up.
• Filter Coffee: Experience the traditional South Indian brewing method.
• Cold Brew Coffee: Smooth and refreshing, perfect for hot days.
• Hot Brew Coffee: Choose from a variety of beans and roasts for your preferred brewing method.
• Grounded Coffee: Freshly ground for maximum flavor and aroma.

But Toffee Coffee Roasters goes beyond the ordinary. They offer unique experiences like their signature “whiskey barrel aged coffee,” which instantly grabbed the attention of the sharks with its intriguing concept. The innovative packaging, designed to be anchored to your cup for instant brewing, was another point of interest, along with the product’s delicious taste and captivating aroma.

Market potential and economics 

India, a major coffee producer globally, boasts a bustling coffee market valued at a staggering Rs. 14,000 – Rs. 15,000 crores. This market caters to diverse preferences, divided into two key segments:

• Out-of-Home: Dominated by international giants like Starbucks, offering convenient coffee solutions for on-the-go consumers.
• At-Home: Traditional brands like Nescafe and Bru hold sway in this segment, catering to in-house coffee enjoyment.

The growth of the brand is impressive. Annual sales have skyrocketed from Rs. 25 lakhs in FY 2019-20 to a commendable Rs. 2.3 crores in FY 2022-23. The company anticipates continued expansion, aiming for Rs. 6-6.5 crores in sales for FY 2023-24. To reach a wider audience, Toffee Coffee Roasters employs a multi-channel approach. Their products are readily available on their website and various online marketplaces.

The Indian coffee market is large and growing, and Toffee Coffee Roasters is well-positioned to take advantage of this growth. The company’s sales are growing rapidly, and its market share is increasing. With continued investment in marketing and product development, Coffee Toffee Roasters has the potential to become a major player in the Indian coffee market.

Facing the challenge of “Why specialty coffee when instant dominates?”, Toffee Coffee Roasters presented their distinct vision to the sharks. Ritesh and Nandhini emphasized their focus on crafting an experience: bringing the essence of at-home specialty coffee to consumers, using authentically sourced beans. However, Vineetha raised a crucial question: “why target a niche audience in a market heavily influenced by instant coffee?” This concern highlights the key challenge for Coffee Toffee Roasters – balancing their unique value proposition with reaching a broader consumer base.

The Shark Tank India ‘Ask’

Toffee Coffee Roasters asked for Rs. 60 lakhs for 2% equity. Vineetha Singh, Co–founder & CEO of Sugar Cosmetics backed out by saying there is confusion in their business strategy and that with such high pricing, the market size will reduce significantly. 

Radhika Gupta, CEO of Edelweiss Mutual Fund, and Aman Gupta, Co-Founder & CEO of boAt Lifestyle backed out by saying the market is competitive and small and the existing competitors are well funded. Aman also advised them not to go all out on flavors and focus on their signature flavors. 

Ritesh Agarwal, CEO of OYO rooms offered Rs. 30 lakhs for 2% equity + Rs. 30 lakhs debt at a 10% interest rate for 3 years. Upon counter from Toffee Coffee Roasters to reduce the debt Ritesh offered Rs.35 lakhs for 2.33% equity + Rs. 25 lakhs debt at 10% interest for 3 years and the deal was closed. 

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