Asian Coffee Giant Challenges Global Leaders in India

Global coffee giants Starbucks and Tim Hortons are facing a new competitor in India - the Indonesian brand Kopi Kenangan. Valued at over $1 billion, Kopi Kenangan aims to leverage India's growing cafe culture with competitively priced offerings tailored to the local palate.

"For any retail brand, it would be such a waste if you miss the train in India," said Edward Tirtanata, co-founder and CEO of Kenangan Brands. Backed by Peak XV Partners and B Capital, the company sees a vast opportunity in India's expanding economy and significant purchasing power in major cities.

Localized Menu and Competitive Pricing

Kopi Kenangan has introduced a menu priced lower than in other markets like Singapore and Australia, targeting students, young Gen Z, and millennials. With espresso shots starting at Rs 99 and larger servings under Rs 150, the brand positions itself as a more accessible option compared to Starbucks and local chains like Blue Tokai.

Challenges and Opportunities

Despite the crowded market with global and local players, Kopi Kenangan's strategy of sourcing ingredients locally helps maintain low prices. The brand's entry comes at a time when consumer demand is sluggish due to high inflation, affecting competitors' expansion plans.

After launching in Delhi, Kopi Kenangan plans to expand to Mumbai and Bengaluru in the coming years, signaling a bold move to capture India's nascent cafe market.