Starbucks, Tata enter into India joint venture
Jan. 30, 2012
by Keith Nunes
SEATTLE — The Starbucks Coffee Co. and Tata Global Beverages Ltd., Mumbai, India, have created a 50/50 joint venture that will introduce Starbucks-style cafes in India. The joint venture will be called Tata Starbucks Ltd., and the cafes will be branded as Starbucks Coffee “A Tata Alliance.”
The two companies also have entered into a separate sourcing agreement in which Tata Coffee Ltd., a business unit of Tata Global Beverages, will roast coffee, primarily India Arabica beans, to supply the joint venture and export to the Starbucks Coffee Co. for use in Starbucks cafes outside of India.
“The joint venture with Starbucks is in line with Tata Global Beverages’ strategy of growing through strategic alliances in addition to organic and inorganic growth,” said Mr. R K Krishnakumar, vice-chairman, Tata Global Beverages. “It opens up exciting business opportunities and new formats for Tata Global Beverages. Starbucks brings unique retail expertise as well as a shared sense of business values. We are excited about the opportunities the alliance presents to innovate in the retail space and bring new beverage experiences to more consumers in India, leveraging the global in-home expertise of Tata Global Beverages and the global out-of-home expertise of Starbucks.”