In a bid to expand its global tea and coffee business, Tata Global Beverages has acquired SuntyCo Holding, the owner of the ‘Grand’ tea and coffee business in Russia, for an undisclosed amount.
Tata Global Beverages and the European Bank of Reconstruction and Development, which together held 51 per cent of SuntyCo Holdings, have acquired the remaining 49 per cent of shares.
In 2009, the beverage giant, then Tata Tea, had acquired 51 per cent in the Russian company, along with the European Bank for Reconstruction and Development. Tea is Russia’s national drink and an average Russian consumes 1.2 kg a year, compared to the global average of 0.3 kg. The hot beverage has a rich and varied history.
It was introduced in the USSR in the 16th century by the Chinese, but when ties with China turned sour in the 1970s, the USSR started importing tea from Ceylon and India. Soon, Indian tea conquered the Russian palate. With this acquisition, Tata Global Beverages’ presence in the Russian hot beverages market is to be further strengthened.
“This is in line with Tata Global Beverages’ strategy to invest in and grow beverage brands in identified key markets, through both acquisition and organic growth,” said a company spokesperson.