The partnership between Starbucks Corporation and the Tata Group will be expanded with the launch of several of its products outside India, according to Economic Times. Starbucks and Tata’s single-origin coffee – Starbucks Reserve Tata Nullore Estates – will be the first Indian coffee to be roasted in the US with the initial launch targeting the Seattle area later this year. Tata Global Beverage’s Himalayan Mineral Water brand will also be launched in Singapore.
Expanding Presence Through Partnership
Starbucks, through its partnership with the Tata Group, plans to expand its product portfolio beyond India. Speaking to ET about the partnership, John Culver, Group President at Starbucks Coffee China and Asia Pacific, said, “The vision and partnership signed five years ago was not just for the business and joint venture in India. As two global iconic company with strong capabilities around the world, its about how we could continue to look at ways to partner together beyond India.” Culver also noted that the expertise possessed by the two companies in could potentially help in “sourcing, blending and bringing coffee and tea products outside India.”
The initial product to be made available through the partnership will be the Starbucks Reserve Tata Nullore Estates brand. It will be the first Indian coffee to be roasted and sold in countries outside India. According to ET, the coffee will also be made available on all Vistara Flights, a joint venture between Tata and Singapore Airlines.
Starbucks in India
Starbucks entered the Indian market through a partnership with Tata Global Beverages in January 2012 when the 50:50 joint venture between the two companies was announced. Tata Starbucks Ltd. opened its first outlet on October 2012 in Mumbai. The company further expanded its presence into the Indian coffee market by launching two new outlets on January by 2013 in Delhi. Since its launch, Starbucks has emerged as huge competitors to local brands such as Cafe Coffee Day and currently has nearly 84 outlets across the country, a record expansion rate in the 45-years history of Starbucks.
The Starbucks brand has become synonymous with the coffee connoisseurs in the country. With premium pricing and locations, the brand has evolved into a big-time player in the emerging cafe and coffee categories in the country. According to ET, Tata Starbucks generated revenue of Rs. 171 crore in the year ended at March 2015 with losses declining from Rs. 51 crore the previous year to Rs. 47 crore. Speaking about the growth of the Starbucks brand in India, Culver said, “When we entered India, we wanted to find a business partner that could navigate through the complexities that we have seen in India and Tata was top on the list. We are going to continue to accelerate the growth in the market place and grow in a way that resonates with our customers.”