Tata Global Beverages and Starbucks Coffee Company have decided to forge a 50:50 joint venture company — Tata Starbucks Ltd — to launch branded cafes under the name of Starbucks Coffee ‘A Tata Alliance'.

The new JV company will have an initial investment of Rs 400 crore and plans are afoot to launch 50 stores in cities such as Delhi and Mumbai, with the first one slated to open in August this year.

Early last year Starbucks had signed an initial agreement (MoU) with Tata Coffee, a subsidiary of Tata Global Beverages, to source and roast premium coffee beans from India and this arrangement would continue. Besides, this is the second time that the Tata group has invested in the coffee retailing business (it had picked up a minority stake in Italian coffee major Barista, which was subsequently sold off).

In the Indian market, the JV is expected to launch co-branded products such as Tata Tazo, a premium tea brand.

Addressing a press conference, Mr R.K. Krishnakumar, Vice-Chairman, Tata Global Beverages, said, “It is not just the store or café format that will get launched in India — the joint venture will bring other facets of the beverage business also. We would also look at partnerships in the food services business with the support of our other listed group companies such as Indian Hotels.'' In fact, some of the Taj properties belonging to Indian Hotels would be roped in to sell products and food services belonging to Starbucks.

Besides, brands belonging to Tata Global Beverages could also get sold at some of Starbucks 17,000 outlets across 57 cities worldwide. In fact, the JV could also leverage the loss-making brands of TGV, such as Himalayan packaged water.

The shares of Tata Global Beverages rose by 0.67 per cent and closed at Rs 97.95 on Monday.

> purvita@thehindu.co.in

Related Topics