- Araku Coffee was originally a non-profit venture supported by Naandi Foundation, the brainchild of Andhra Pradesh chief minister Chandrababu Naidu and Anji Reddy, founder of Dr Reddy’s.
- Now, this social enterprise has been transformed into a ‘for-profit’ venture
- Current main investors:
- Location – Araku region (mainly a tribal area) in Visakhapatnam district
- Coffee plantation area has gone up to 20,000+ acres
- Different coffee variants – draws their flavours from the ‘complex terroir’ or unique environment
- Its production is being done using techniques similar to those in wine making
- It already got a geographical indication (GI) tag
- Authenticates the unique properties a region can offer to a product.
- Market – First launch in Paris & then in retail stores inNew York and Tokyo
- Competing with world famous Columbian and Sumatra coffees
- Premium Pricing = ~ Rs 7,000 per kg
- Number of launch variants = 05
Pivotal Government role:
- has created a special developmental and funding plan for locals.
- All the land here belongs to the govt. & a tribal is entitled to get land as much as s/he can till for free, to earn a living.
- Profits made from the venture will be diverted back to improve the quality of the farmers’ lives.
- It’s an exemplary case-study – if you have political will & like-minded achievers, how a non-profit enterprise can become a ‘for-profit’ sustainable entity.
- Those who preach various strategies of rural marketing at various B-schools and directly/indirectly work towards making rural human capital as ‘Just a Consumer’, the social impact of ‘Araku Coffee’ enterprise should be an eye-opener for them.
- Intercropping black pepper
Know-more about key aspects of your COFFEE:
- Coffee is one of the most popular non-alcoholic drinks in the world.
- It is slightly acidic and can have a stimulating effect on humans because of its caffeine content.
- Of the two main species grown, arabica coffee (from arabica) is generally more highly regarded than robusta coffee (from C. canephora); robusta tends to be bitter & have less flavor but better body than arabica.
- Robusta strains also contain about 40–50% more caffeine than arabica.
- Coffee is often intercropped with food crops, such as corn, beans, or rice during the first few years of cultivation as farmers become familiar with its requirements
- In Thailand, black ivory coffee beans are fed to elephants whose digestive enzymes reduce the bitter taste of beans collected from dung. These premium coffee beans are are world most expensive coffee & are sold up to 11OO USD/kg (~73,700 INR/kg).