Bengaluru: The reports of Indian tobacco major ITC Ltd trying to get a stake in Cafe Coffee Day’s parent company Coffee Day Enterprises Ltd have been making rounds. However, this claim has been refuted by both Coffee Day Enterprises as well as ITC.
ITC is not going to acquire a stake in the Café Coffee Day chain since it did not find a fit with its business and also not keen to take on the debt of the coffee chain on its shoulders, Economic Times quoted two senior industry executives. Earlier reports in the media had claimed that the ITC was keen on having a stake in the company, close on the heels of global beverage company Coca-Cola showing interest in buying the stake in the CCD.
Reports claimed that the ITC was keen on diversifying from the company’s primary product-tobacco. “ITC receives enquiries from market participants on an ongoing basis which are suitably evaluated. One such enquiry was received from an intermediary on Cafe Coffee Day. However, no progress was made on the matter,” ET has quoted a spokesperson adding that ITC has launched coffee cafes under the Sunbean Gourmet brand name, but those are much more premium than Café Coffee Day and hence there is no fit. ITC currently operates these cafes in its luxury hotels and select malls. Meanwhile, Cafe Coffee Day is under tremendous debt and is looking for ways to come out of the situation, which has worsened with the untimely demise of CCD Founder VG Siddhartha.
