Tonino Lamborghini has launched its beverage line which includes espresso coffee, hot chocolate, energy drinks and vodka.
“With an over 1.3 billion population, there is a vast opportunity for our products in India. The country is emerging as a major market for luxury goods. According to Euromonitor’s forecast, the luxury segment in India will grow at 18.1 per cent between 2019 and 2023,” Ferruccio Lamborghini, CEO and vice-president of Tonino Lamborghini, told The Telegraph.
“We will soon be expanding in the Indian market with Lamborghini watches and M/s Heinrich will be the official distributor across India,” he said.
In the mid-90s, Lamborghini decided to go beyond just selling cars. They launched their own line of premium vodka, coffee blends and hot chocolate globally.
Established in 1947, Lamborghini was founded by Ferruccio Lamborghini. Over time, the company began diversifying, going beyond just cars and engines — to more recently, coffee blends.
Ferruccio said Lamborghini has vast experience in mechanical and automotive engineering and is developing a lifestyle experience brand with a range of luxury design products, including watches, eyewear, smartphones, perfumes, furniture, clothing, sports accessories, golf and utility carts, five-star boutique hotels, real estate projects, cafes and lounges.
All Tonino Lamborghini beverage products are known for their high quality and style. They are distributed in more than 40 countries.
Target customer
Luxury companies are now betting big on the ‘high earners, not rich yet’ consumers with significant discretionary income and a strong chance of being wealthy in the future, Deloitte said in its Global Powers of Luxury Goods 2019 report.
Analysts said the top most of the pyramid, or the elite class, is just 4 per cent of the overall population, but the absolute numbers are far too attractive for any luxury brand to ignore. These numbers are expected to grow from the current 10 million to 26 million households by 2025.
In addition, by 2025, the overall average household income is expected to multiply 1.7 times. This, in itself, is an attractive proposition for any global retail brand.
Ferruccio said coffee is a consumer beverage that represents only a small fraction of consumer spending. India has been witnessing a steady rise in coffee consumption. More and more players are recognising the massive untapped coffee industry in India and with more middle-class consumers consuming coffee, the discretionary spending will go up.
Energy drinks are marketed as an alternative to carbonated drinks. Various factors, such as increasing disposable incomes and rising health consciousness are leading to the growth in the demand for non-carbonated drinks.
This growth enables industry players to concentrate more on health and energy drinks, thereby driving the energy drink market.
A dramatic increase was seen in the consumption of energy drinks, particularly among young adults and adolescents in India.
He said India is among one of the fastest-growing markets for coffee. Through the last decade, there has been an increase in coffee demand by 40 per cent, which is indicative of a growth in coffee culture and it is expected to grow annually by 7.7 per cent (CAGR 2019-2023).