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"After fifty years of monopoly, we have entered the free market so there is bound to be a fallout – especially for the small player, who was protected all this time and now will have to fend for himself.": Sunalini Menon, Chief Executive, Coffeelab

Bangalore, March 23, 2001

Sunalini Menon, Chief Executive, Coffeelab Private Limited, is India's first coffee taster. Menon drinks, eats and breathes coffee. Her Coffeelab office is littered with coffee memorabilia and the coffee motif is ubiquitous - in the potted plant, the wall decorations, the tables - even certificates and award plaques are on coffee wood. The clock face has coffee beans for numbers. Menon worked for 23 years in the Coffee Board before setting up Coffeelab Private Limited in Bangalore, in March 1996, where she is now Chief Executive.

She spoke to indiamarkets about her profession as India's first woman coffee taster, liberalisation in the coffee industry and on how to promote coffee exports.

Coffeelab evaluates the unusual and quality overtones of Indian coffee and provides much needed seal of quality to the coffee producer, exporter, trader and consumer. The time tested techniques of visual and organoleptic evaluation of the coffee produce have been adopted to assure the quality of the produce offered to the buyer and consumer, to provide quality feedback to the grower, curer, manufacturer, trader or exporter and above all, to upgrade the quality of coffee.

Coffeelab offers the following services:

  • Green coffee evaluation (eg, moisture content, cup quality)
  • Education, Consultancy and Training (at the estate on processing techniques, nuances of brewing)
  • Special Preparations (blended coffee, specialty coffees)
  • Certification (of quality, moisture content, cup quality)
  • Coffee Roasting, Blending and Brewing
  • Evaluation and
  • Advisory roles.

indiamarkets: What does liberalisation mean in the coffee sector, especially to the small grower?
Menon: After fifty years of monopoly, we have entered the free market so there is bound to be a fallout – especially for the small player, who was protected all this time and now will have to fend for himself. But we must remember that it was the large and the very small grower as well who asked for liberalisation.

When I was in the Coffee Board, we used to be asked by growers, “Where is the recognition for quality?” After liberalisation, luckily for them, there was an upward spiral in prices of coffee. However, it is important to know that the reason for the upward movement in coffee prices was due to market vagaries. Coffee prices had risen, stocks were less, carry-over stocks had dwindled. Today, prices of coffee are low – and again, some sections might hold the Board responsible for it.

indiamarkets: Tell us about the role of the Coffee Board in the post liberalisation era.
Menon: I am not saying that liberalisation is 100 per cent good but it is certainly a plus – growers will now have to look after themselves, even though the Board is here. The Board will stay as a nodal body – for extension, research, market feedback, fairs, support structure, for the small farmer in the tribal belt. The Coffee Board plays a very subtle role and certainly it should continue. This is also because it plays an important role in government-to-government interactions. Yes, growers’ associations are there - but they are all coordinated by the Coffee Board, which acts as an umbrella body.

indiamarkets: How was the transition to a free market for the sector?
Menon: The liberalisation process in the coffee sector has been done in an excellent way. There has been a very systematic, gradual process, which went step by step, from small growers to big growers. The Government of India must be given the credit for a smooth transition to liberalisation in the coffee sector. The process began in 1992-93 and was finally completed in January 1, 1996.

Growers also did a good job of it. Of course, in every sector, there are the black sheep – they will always be there whether it is a liberalized economy or a controlled one. The difference is that, earlier, the Coffee Board took the rap, now the growers and exporters take it upon themselves.

indiamarkets: What scope do small coffee growers have so far as exports are concerned?
Menon: First, like minded growers can get together and send container loads across to a particular country. Second, make blends. And look out for a market - for instance, Ready to Drink Night Caps are extremely popular abroad. Yes, India is late on the scene but it can do it still. Small farmers can get together and sustain themselves – even though there are people who say that Indians cannot work in cooperatives – that they are ready to fight among themselves.

indiamarkets: How is the infrastructure scenario for coffee in India?
Menon: The need of the hour today is value added coffees. However, infrastructure support, which is very important, is lacking because of which we have no blends. Any person in India who wishes to get packaging done, for say, 100 kg of coffee, will have to run to the Board or look around for such infrastructure. Abroad, however, it is different. Even a small coffee grower can get to a packaging unit. Which is why it is easy to get value added coffees.

It is very important that we strengthen our infrastructure support if we wish to create value added products. It is important for the small grower to be able to roast the coffee and pack it himself and have good freight facilities - there is high demand for such coffee and there are high returns as well.

And as for who should do all this, I think the answer is – the growers. Growers must help themselves and the government must join in. There is no need for subsidies. The era of subsidy is over. Government and grower should work together. Government policies now are such that overseas people can come here and set up industries.

indiamarkets: What potential does coffee have as a forex earner?
Menon: Yashwant Sinha must look at the plantation sector. It is a very good money-spinner. Even as far as forex earnings are concerned, coffee is better than tea, as much of it is exported. Tea is consumed more at home. Coffee can become a very good source of bringing in forex. At present, coffee prices are down but they are bound to go up. Till then, we should get ready with our infrastructure. In two years, prices will rise upward again.

indiamarkets: What role do you see for the Net in the coffee business?
Menon: In the long term, the Net is going to play a very important role. In Brazil, coffee auctions are already taking place over the Net. There were 18 lots up on an auction last year on an online auction and this year that improved further. The Net has a massive role to play. Though what I feel is that the personalized touch – so important in a commodity like coffee will be missing. Already, there are so many dotcoms that offer trade on the Net. As for information, there is lots on coffee too on the Net.

indiamarkets: What made you set up Coffeelab?
Menon: I have been in the Coffee Board for more than two decades. When the privatization process began, I thought the excitement was on the other side. When I began Coffeelab, coffee prices were very high but still, we thought, “Let’s try this out.” Some people did feel that at that time, no one would be bothered about quality.

This year, even when prices were down, we still feel it is time to look at quality. I think that when prices are up, it is time to look at infrastructure – to invest in upgrading oneself. One should look at equipment and see how cost of production can be brought down, when sales are high. We should see if we can make branded coffees, specialty coffees, ‘monsoon’ coffee. All these need investment for processing facilities.

indiamarkets: What brought you into the coffee sector? How did it all begin?
Menon: I am actually a food technologist. The Coffee Board wanted a taster. I was tested, trained and taken. In this field, I have been learning everyday. Coffee is living unlike tea – it changes – the beans grow into plants, you roast it and it gets another character – it is unlike tea which is “not emoting emotions”. With coffee, “something is happening all the time”. It is a new experience everyday.

I was always learning while working. Of course, I give 100 per cent credit to the Coffee Board to what I am today but I also give credit to myself! I happened to be a young woman in coffee, which is a man’s world. I was made Director (Quality) at the age of 24 but was dubbed 'Cup Taster'. But I learnt everything – about body, flavour, acidity, a 'bad cup' and a 'good cup'. It all became possible because one of the chairmen told me once, “Knowledge is power. If you have that, no on can trample over you.”

So I pored over books and learnt everything about coffee. Of course, the Board helped me by sending me for training to workshops and conferences. I learnt a lot from buyers how to 'cup' coffee. Now, I am taken seriously. And I have to be perfect.

indiamarkets: Who uses the services offered by Coffeelab?
Menon: I work for large clients like Café Coffee Day. I have been working with Illy – the world’s largest roaster for the past three years – it’s like ‘you’ve arrived!” when you work for them. Then there are individuals, overseas clients, individual estates. I am associated with processing and “cupping” and during the lean seasons, when people in the industry are free, I hold workshops.

indiamarkets: Tell us about coffee tasting.
Menon: Coffee is very viscous and it is very bitter when you taste it first. But we have to learn to look beyond the bitter. For this, it is very important to preserve the palate. Tasters should not smoke, drink, eat spicy foods or chew paan. They shouldn’t eat onions or wear perfumes. We look for fragrance in the powder and aroma in the liquid.


Coffee tasters at work: Sunalini Menon
and colleague Renuka Gangadharan

indiamarkets: What do you think of coffee drinking habits here?
Menon: Ten years back, there were no coffee cafes in Bangalore. Then came Java City, Coffee Day and now we have Barista. It’s a great way of weaning away the youth from the pubs. I am not saying that pubs are bad but young people who could get addicted to pubbing now have a choice. There’s a good atmosphere in the coffee cafes and even if they drink three coffees a day with milk, it’s not harmful – it is well within allowed limits. Even if you take four cups, the coffee content is still very low. It’s ok till eight ounces, which is equal to three espressos.

indiamarkets: Do you intend expanding?
Menon: No, we have decided to keep Coffeelab small because our core is quality service, which we do not want to neglect. Tasting especially takes years of practice – about 20-25 years. It is very specialised. We intend training people for coffee tasting, but it will not be in large numbers. Our staff and clients also will remain same.

For comments, mail renuka@indiamarkets.com


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